Posts Tagged ‘buy long-term care insurance’

BUYING INSURANCE

Why Should You Buy Long-Term Care Insurance?

1. It will help you keep your independence and dignity. Here’s how. . . some of you will spend all your assets on care while others plan to give their money away or put it in trust. With no assets you will now qualify for a welfare program called Medicaid. Medicaid typically pays for a semiprivate room in a nursing home, and; not all nursing homes take Medicaid patients. In many states it’s not easy to get Medicaid to cover home care or pay for assisted living. Many people want to stay at home, but with Medicaid may not be able to. And assisted living is rapidly becoming a preferred alternative to nursing home care for certain disabilities but Medicaid may insist on a nursing home instead.

A nursing home is not the most desirable place to finish out one’s life. For many, a terminal stay in a nursing facility robs them of a purpose in life and strips away their dignity. As an example, have you ever thought of the indignity of being bathed, toiletted or diapered in a nursing home environment? No wonder many people express the desire to die before ever having to go into a nursing home.

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Visit www.aaltci.org and www.aaltci.org/long-term-care-insurance to learn more.

Long-Term Care Insurance: You Have Options

By: Janet Arrowood

The latest offerings provide more coverage and the ability to pick and choose what types of coverage you’ll need.

There was a time in the not-too-distant past when choosing a long-term care insurance plan was simple–because there was only one option: a nursing-home-only plan modeled after Medicare LTC coverage. Today, you can choose your coverage and its terms from a plethora of options. But, with all of these choices, careful evaluation of LTC policies is more critical than ever.

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What individuals pay for long-term care insurance can range significantly from about $700 a year to as over $13,000 per year according to a study from the American Association for Long-Term Care Insurance.

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No long-term-care insurance? Uh-oh

You probably don’t need another bill to pay. But skipping this protection could destroy your finances, even long before you’re old, or vaporize your kids’ inheritances.

Continue reading this article HERE.

This article can be found at http://longtermcareinsurance.org/longtermcareinsurance.html

Will You need Long Term Care?

It’s hard to believe, but the estimated risk for needing Long Term Care continues to climb with each passing year. Now, the Federal government estimates that each individual has a 70% chance of needing Long Term Care in their lifetime. Recent studies reveal that if you are 60 years old you have more than a 60% chance of needing long term care. If you are over 65 years old, your chances of needing care goes up to 70%.

Who Is More At Risk for Needing Long Term Care?

Your age, marital status, gender, lifestyle and, to some extent, your family health history all play a part in the possibility of needing long term care.

According to insurance actuarials, you are more at risk if you:

* are older

* are a woman

* are single

* have a poor diet

* don’t exercise regularly

* smoke

* have a family history of Alzheimer’s, stroke, arthritis, or other degenerative diseases.

* Also, physical activities that can cause severe accidents should be included as a definite risk.

The Long Term Care Cycle

91% of Americans surveyed said they would prefer receiving Long Term Care at home. Indeed, of those needing care only 5% are in Skilled Nursing Facilites.

12% are in Assisted Living Facilities and more than

80% are receiving Home Care

Therefore, it isn’t a surprise that most Long Term Care starts at home with the help of family or friends until the caregiving burden becomes a too much of a hardship. The next step might be to hire a paid caregiver to help with care duties in the home. Yet many people can’t afford such a luxury, even if they hire unskilled, unlicensed, unsupervised “grey market” caregivers. As care needs increase the next care setting of preference is Assisted Living Facilities, as they are more like hotels than the hospital-type setting of a Skilled Nursing Facility. Most people do everything in their power to stay out of nursing homes, which is one reason why the average nursing home stay is only 2.5 years.

While most Americans suspect that they might need long term care “sometime” in the future, many underestimate care costs and falsely assume that Medicare or their health insurance will pay for extended care. They will not. Medicare will only pay for a short time and only under specific, limited circumstances. The only governement agencies that pay for Long Term Care are Medicaid and the Veteran’s Administration. Both are notorious for their lack of care quality and poor quality of life for their residents.

Boomers’ Mindset

Boomers have been raised to expect a decent quality of life and the freedom to make their own choices. They cherish independence, pleasure and, as they have matured, the joys of family and friends.

As a generation, Boomers were not raised to expect or shoulder sacrifice, although they can and do rise to the occasion. For most, the mere thought of a loved one enduring the extraordinary burden and sacrifice of day-to-day caregiving is enough to motivate Boomers to protect themselves and their families.

The value of Long Term Care insurance is that it:

1) supports independence by providing the ability to pay for Home Care and Assisted Living costs. It give people choices.

2) protects loved ones from the burdens of caregiving.

Long Term Care insurance should be called “nursing home and family caregiving prevention insurance”, and for these benefits alone it is worth its price.

Either having LTC insurance or paying for care costs out-of-pocket allows you to choose where to receive care, even when caregiving needs increase. However, Long Term Care insurance is less expensive in the long-run.

When Should I Buy Long Term Care Insurance?

The sooner the better! LTC insurance premiums go up in price as you get older, although once you buy a policy your premiums do not rise due to aging or health. For years, financial planners were telling their clients to wait until age 65, but this is no longer considered sound advice. The Federal and State Partnership Programs encourage people to buy as early as age 40, mostly to increase the financial security of the programs, but also to ensure that people do not become a burden on Welfare/Medicaid if they get sick or injured at an early age and need long term care.

If you can afford the premium for years to come, buy now to protect yourself and your family.

A free guide describes ways to reduce the cost of long-term care insurance by 20 to 50 percent annually. The guide is offered by the American Association for Long-Term Care Insurance, the industry trade group.

Some 10 million Americans currently require long-term care according to the American Association for Long-Term Care Insurance with annual expenditures exceeding $200 billion.

Experts expect the number of individuals needing care will grow significantly in the next decade as the 76 million baby boomers begin to turn 65. To educate individuals about the importance of long-term care planning and ways to make insurance protection more affordable, the organization is making available a free informational guide.

“Few people are aware of the discounts available that can make long-term care insurance quite affordable,” explains Jesse Slome, the organization’s executive director. “It is possible to reduce the cost by between 20-and-50 percent yearly simply by knowing what savings and discounts are available from leading insurance companies.”

Discounts are available when applicants meet certain health qualifications. Non-smokers may qualify for savings and couples or partners who apply for protection may be eligible for savings, even when only one individual obtains insurance coverage.

The guide, “Potential Ways To Reduce The Cost of Long-Term Care Insurance” can be accessed online. No sign-up or personal information is required to access the information. To access the free guide, visit the Association’s Consumer Information Center http://www.aaltci.org/free-guide/

When it comes to long-term care insurance, there’s an old saying; “your money pays for it, but your health really buys it.”

That’s because there are certain pre-existing health conditions that can make it impossible for you to health qualify, and we list those below.

But if you are in relatively good health, now is the time to start the process.

Most people have some health issues … maybe a bit of hypertension for which you take medication … maybe you even had cancer some years ago.  Even people with health conditions may still qualify for long-term care insurance but it really pays to talk to a long-term care insurance professional with access to multiple insurers. 

Health underwriting standards vary from one insurer to another.  And they change from time to time.  So you need someone with current expertise who will shop the market for you before you apply.  You’ll save time.  You can save money.  And, you’ll avoid being declined.

Here’s important information.  Your good health can get you preferred health discounts that will save you significant dollars.  Plus, you lock them in.  You can’t lose the good health status even if your health changes at a future date.

A recent study conducted by the American Association for Long-Term Care Insurance revealed the percentage of applicants who qualify for good health discounts and the percentage who were declined.  It’s clearly to your benefit to start the process at younger ages, certainly while in your 50s.

Percentage of Applicants in 2007 Who Qualify for Good Health Discount

Percentage of Applicants Declined Coverage (Individual Policies)

Pre-existing conditions that can make it impossible for you to health qualify.  If you have any of these health issues, it generally won’t pay to take the time to request a quote for long-term care insurance.

Do not fill out the form if you currently:
Use a multi-pronged cane, crutches, oxygen, walker or wheelchair

Require assistance with bathing, dressing, feeding, toileting, urinary or bowel continence, or transferring between your bed or a chair

Use or need a home health care, adult day care, assisted living or nursing home care

Require assistance with grocery shopping, use of transportation, use of telephone or banking.

Do not fill out the form if you currently have:
AIDs or HIV infection
Alzheimer’s Disease
Amyotrophic Lateral Sclerosis (ALS)
Cystic Fibrosis
Dementia
Hemophilia (other than Von Willebrand disease)
Active Hepatitis C, Non-A, Non-B, or Autoimmune
Kidney Failure
Liver Cirrhosis
Memory Loss
Mid – Advanced Multiple Sclerosis
Muscular Dystrophy
Paralysis
Parkinson’s Disease
Post-Polio Syndrome
Schizophrenia
Sickle Cell Anemia
Systemic Lupus Erythematosus

If you are not insurable, then we are truly sorry.  Regrettably, we talk to many individuals who cannot health qualify for long-term care insurance protection.  Please tell those you love about the importance of starting a long-term care plan while they are younger and still in good health.

This information brought to you by www.aaltci.org/long-term-care-insurance , The American Association for Long-Term Care Insurance.

December 2009 – Costs for long-term care insurance have risen slightly, about two percent, compared to the prior year according to a just-concluded study.

A 55-year-old individual considering long-term care insurance protection can expect to pay $723-per-year for a base level of protection if they are married or $1,060 if they are single according to the annual Long-Term Care Insurance Price Index published by the American Association for Long-Term Care Insurance (http://www.aaltci.org).

The study measured costs for top selling long-term care insurance policies that provided approximately $115,000 in current benefits, with protection increasing yearly as the individual ages.  “A solid base plan of protection will grow in value to over $305,000 of protection 20 years from now,” explains Jesse Slome, executive director of the national trade organization that conducted the annual study.  

For some age bands the cost of long-term care insurance experienced a modest one percent decline compared to the prior year, the study found.  “What we did see is a far wider range of prices between insurers offering basically the same coverage,” Slome notes.   According to the study, costs can vary by as much as 60 percent from one insurer to the next.   Experts advise consumers to compare policies or work with a knowledgeable insurance professional with access to multiple insurers who can help you get the most benefit for the lowest cost.

“The cost of long-term care insurance is directly related to how much protection you purchase, the age you first apply, your health at the time of application and assumptions that vary from one insurer to another,” explains Slome.  According to the Association, over half of all individual applicants are between ages 55 and 64, and one third purchase a daily benefit of between $100 and $149.  Most opt for an optional inflation growth rider that increases the potential pool of available benefit dollars each year. 

The cost analysis priced typical coverage for individuals ages 55 and 65.   The study reports that a married individual age 55 purchasing $172,000 in current protection will pay about $20-a-week ($1,084-per-year) by qualifying for available good health discounts.  By waiting until they are age 65, they’ll likely pay $63-a-week ($3,275-per-year) because costs increase with age and one must buy more coverage to keep pace with inflation the report concludes. 

The American Association for Long-Term Care Insurance is the national association serving insurance and financial professionals who provide long-term care financing solutions.  The organization is headquartered in Los Angeles, CA.  Learn about long-term care insurance at: www.aaltci.org/long-term-care-insurance.

Jesse Slome
The American Association for Long-Term Care Insurance

Phone  (818) 597-3227
Email:  jslome@aaltci.org

Web:  http://www.aaltci.org

Interesting article written by Kate Pickert at www.Time.com

Tucked deep inside the Senate health reform bill — beginning on page 1,926 — is a plan for a new federal insurance program. Average premiums could be as high as $180 per month and could be automatically deducted from the paychecks of some American workers. The nonpartisan Congressional Budget Office (CBO) predicts this new program would “add to budget deficits … by amounts on the order of tens of billions of dollars.” This is not, however, the so-called public option that is the focus of much heated debate on Capitol Hill. It’s an entirely different Democratic plan for a new kind of government-run health insurance — one that would help provide long-term care for the elderly and infirm.

Read more: http://www.time.com/time/politics/article/0,8599,1946431,00.html#ixzz0ZaotG4az

Study examines trends in long-term home health care utilization and points to home health care support as a significantly growing trend

GREENWOOD VILLAGE, CO – December 01, 2009 – American Association for Long-Term Care Insurance (www.AALTCI.org) and Homewatch CareGivers, the largest, most experienced international provider of home care for people of all ages (www.HomewatchCareGivers.com), teamed up to conduct a study examining trends in long-term health care and the utilization of associated support services. Among the conclusions of the study is the dramatic growth of people receiving support care at home and the significantly greater percentage of those with long-term care insurance who are able to receive home-based care and stay in the their homes longer.

According to the American Association for Long-Term Care Insurance, approximately 7.5 million individuals currently receive long-term care at home because of an acute illness, long-term health condition, a permanent disability, or terminal illness. That compares to only 1.5 million in nursing homes and 1.1 million in assisted-living facilities who receive similar care for the same types of conditions. That means nearly three times more people are receiving care at home rather than in a residential facility.

“Most people incorrectly associate long-term health care with skilled nursing care in a facility when the vast majority of care takes place at home,” explains Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance.  “It is clear that the people in today’s society prefer treatment for chronic conditions and issues related to aging in their own home rather than in a residential facility.”

“When possible, home is almost always the preferred setting for people who require care,” says Leann Reynolds, president of Homewatch CareGivers. “This has been a clear and growing trend for more than a decade, as more and better home services have become available.  The vast majority of people want to receive support care in their homes in order to maintain independence and quality of life for as long as possible.”

One aspect of the study sought to compare individuals with long-term care insurance policies with those without insurance coverage.  According to the American Association for Long-Term Care Insurance, 8.25 million individuals presently have coverage and more than 180,000 policyholders are currently receiving benefits. The study clearly indicated that individuals with long-term care insurance receive significantly more home care, and thus can stay in their homes longer.  The difference between the insured and uninsured is significant: 70.6% of those covered received an average of between five and seven days of care each week, while only 35.1% of those without insurance received similar care as often.

Possessing insurance to pay part or all of the cost of home care services enabled individuals to receive care at home for longer periods of time. The study found that 41.2% of those with insurance received care for longer than one year; compared to 29.7% of those without coverage.

“The study confirms what we’ve long suspected, that a basic long-term care insurance plan costing less than $1,000 a year may provide sufficient coverage for those who want care at home and still have the ability to transition to more costly skilled facilities should the need arise,” adds Slome.

According to the Urban Institute, a nonprofit founded in 1968 that conducts research on social and economic issues to foster sound public policy, 21.3 percent of the frail older population receives paid home care services and it projects this will increase to 22.3 percent by 2030 and 25.5% by 2040. 

“It is vitally important for individuals to recognize the increased likelihood of needing care at some point in their lives, and to plan for that inevitability,” concludes Reynolds. “Having sufficient financial resources or the protection of long-term care insurance are the prime factors for all of us who want to stay in our homes and receive care for as long as possible.”

About Homewatch CareGivers

Founded in 1980, Homewatch CareGivers is the largest, most experienced international provider of full-service home care for people of all ages, including seniors, children, veterans, the chronically ill, and those recovering from medical procedures. In-home care services are personalized for each client and customized care plans are administered through an international network of 111 owners with 181 territories which includes 10 international owners with 19 international territories. Each office is locally owned and dedicated to ensuring quality of life for clients and peace of mind for their loved ones.  Call 1-800-777-9770, visit www.homewatchcaregivers.com for company and caregiver information, or learn more from <a href>http://www.youtube.com/watch?v=UwSRiMuM2DA</a>.

About American Association for Long-Term Care Insurance

Founded in 1998, the American Association for Long-Term Care Insurance is the national trade organization established to educate Americans about the importance of long-term care planning.   For more information visit the organization’s Consumer Information Center at <a href>http://www.aaltci.org</a>.   The Association offers a free online guide explaining ways to reduce the cost of long-term care insurance.  To access the information (no sign-in information is required) go to:  <a href>http://www.aaltci.org/free-guide/ </a>.