Saturday, December 10, 2011
Alzheimer's Secrets May Have Already Been Revealed
I will be adding a post to my blog very soon about research related to Alzheimer's that shows a direct connection between the disease and the brain's inability to use insulin. Please stay tuned. This has huge implications for long term care. 50% of LTC insurance claims are memory related... Shocking.
Sunday, December 6, 2009
Why Do People Reject Long Term Care Insurance?
I have been involved with long term care insurance for well over a decade, and over the last five years, I have considered myself a long term care insurance specialist. In order to do the job of insuring individuals and families against the threat of chronic care needs, an agent must be dedicated to this purpose. Offering life insurance, disability or health insurance only dilutes what should be a concentrated effort to ensure that families have the proper amount of long term care insurance. In addition, an insurance agent must know how to navigate through the tremendous diversity of health conditions that clients present prior to applying because without the client's application obtaining approval, all efforts are in vain.
Whether a potential client has been approved or never makes it to the point of applying for a policy, individuals and couples reject this insurance for the wrong reasons. The most unfortunate reason I have uncovered in my experience is simple denial. People do not want to believe that their vitality will eventually diminish. A person will convince themselves that they will either die in their sleep or drop dead from a heart attack. I have trouble empathizing with this position because it only takes a few minutes of thought to consider how needing chronic care will affect friends and family. When an individual or couple decide against insurance, they should ask the following questions: Who will care for me? Who will coordinate my care? How long can I afford $75,000 per year? If my family handles the scheduling of my care, who will train them to do this? How much will that cost? Will they have to leave their job(s) to do this? Can they afford to lose their job(s) if I become their responsibility? Will my friends and family still have to manage my finances? Will I be a burden to my family? Will my spouse have to go back to work if I need care longer than our savings will last? Will there be financial security for my spouse or family after I am gone?
Is the safe spot of denial worth the expense of every one around you? Of course not. Leave denial at the door, and clear your head to make a rational decision for or against LTC insurance.
As expected, there are other reasons people reject LTC insurance, and the second most common reason is the cost of the insurance. There is a simple test you can do to determine if you are a good fit financially for long term care insurance. If you own your home outright and your savings and investments are over $70,000 then you should consider the insurance. Look at the return you make every year on your savings. Is the interest you have earned greater than the cost of the plan quoted to you by your LTC specialist? Do you live off of this interest? Bottom line, if you can pay your insurance premiums with the interest on your savings then you can afford the insurance, but there is more to this analysis. The benefits must be in line with your personal finances, and determining benefit levels is why you want an LTC Specialist. Since average long term care insurance premiums range from $900 to $3500 per year, just asking how much it costs isn't going to give you the information you need. An agent that dabbles in this field may offer you a plan that leads you to believe it is too expensive, even using the formula proposed above, or an ethically challenged agent may under-insure you because they do not want to scare you away with a premium that they believe you will find to be too high.
The middle ground can be found with a plan designed to cover the cost of a semi-private room in a local nursing home. If you need chronic care, you may receive home care or care in an assisted living apartment and never see the inside of a nursing home, but, typically, a nursing home stay is the most expensive scenario with the exception of extensive home care or round the clock home care. If your insurance covers or nearly covers this worst case scenario, you will have an appropriate level of coverage. After you and your specialist decide on your level of coverage, it will be time to evaluate the affordability of the annual premium. You will know if it is affordable or not. If the premium eats away your principal savings and cannot be paid with the interest you earn each year from your savings then perhaps the insurance is not right for you. In this case, if you need long term care, you would spend down your estate to near zero and apply for Medicaid, or medical welfare.
In going through this process, make sure to find a specialist in long term care insurance. Financial planners are not long term care specialists. To check a financial planner's or agent's experience level just ask them which LTC insurance company will offer coverage to someone who has a diagnosis of Bipolar Disorder. Or, how are autoimmune conditions treated by these companies? Do they know what autoimmune means? Any licensed agent or financial planner can submit an application for a client, but how many specialize in making sure an application comes back as an insurance policy without a large increase in the premiums? This is the job of a long term care insurance specialist. The specialist knows the best companies for each medical condition and the right fit for the specific needs of the client. A client who will retire overseas should apply for a cash only plan or indemnity plan. There are many scenarios where dabblers and stockbrokers can make mistakes that you cannot afford when your family's well-being is at stake.
While investigating your long term care options, give your specialist a chance to help you uncover any reasons that may prevent you from making the right choice. A true specialist is not trying to "sell" you, and this will be apparent to you. The two main reasons individuals and couples reject long term care insurance are denial and cost. Open your self up to exploring the consequences of being in denial or misjudging if you can really afford this insurance. You may become uncomfortable discussing your mortality, but by doing this, you may end up saving the people you love from exhaustion and heartache.
I thought about leaving this next point out of this article because it seems too obvious, but it should still be addressed. Forgive me if the following statement is insulting. Insurance is not free. What I mean by this flippant sounding statement is that we do not receive a refund at the end of our lives for having paid all those years of car insurance, and the same is true for home owner's insurance, disability, health or an expired life insurance policy where upon it's expiration we are still drawing breath. The same is true for long term care insurance. If you are one of the lucky individuals who never uses their long term care insurance policy, you will not receive a refund of your premiums.* This is not a new idea to any of us, but it is worth a mention. If you say no to LTC insurance because you will not get your premiums back when you die, then consider the possibility that your reason for rejection is based on denial because insurance has never been free.
One last point, if you are married and you both apply for long term care insurance, but one of you is not approved for coverage, do not make a knee jerk reaction out of anger or frustration to decide that neither of you should have the insurance. Instead, after learning the news, let the emotions cool off for a few days, and then visit with your specialist to decide the best course of action.
* A return of premium rider is available on most plans at an extra cost. Some plans do return the premium if the policyholder dies prior to attaining a predetermined age.
Whether a potential client has been approved or never makes it to the point of applying for a policy, individuals and couples reject this insurance for the wrong reasons. The most unfortunate reason I have uncovered in my experience is simple denial. People do not want to believe that their vitality will eventually diminish. A person will convince themselves that they will either die in their sleep or drop dead from a heart attack. I have trouble empathizing with this position because it only takes a few minutes of thought to consider how needing chronic care will affect friends and family. When an individual or couple decide against insurance, they should ask the following questions: Who will care for me? Who will coordinate my care? How long can I afford $75,000 per year? If my family handles the scheduling of my care, who will train them to do this? How much will that cost? Will they have to leave their job(s) to do this? Can they afford to lose their job(s) if I become their responsibility? Will my friends and family still have to manage my finances? Will I be a burden to my family? Will my spouse have to go back to work if I need care longer than our savings will last? Will there be financial security for my spouse or family after I am gone?
Is the safe spot of denial worth the expense of every one around you? Of course not. Leave denial at the door, and clear your head to make a rational decision for or against LTC insurance.
As expected, there are other reasons people reject LTC insurance, and the second most common reason is the cost of the insurance. There is a simple test you can do to determine if you are a good fit financially for long term care insurance. If you own your home outright and your savings and investments are over $70,000 then you should consider the insurance. Look at the return you make every year on your savings. Is the interest you have earned greater than the cost of the plan quoted to you by your LTC specialist? Do you live off of this interest? Bottom line, if you can pay your insurance premiums with the interest on your savings then you can afford the insurance, but there is more to this analysis. The benefits must be in line with your personal finances, and determining benefit levels is why you want an LTC Specialist. Since average long term care insurance premiums range from $900 to $3500 per year, just asking how much it costs isn't going to give you the information you need. An agent that dabbles in this field may offer you a plan that leads you to believe it is too expensive, even using the formula proposed above, or an ethically challenged agent may under-insure you because they do not want to scare you away with a premium that they believe you will find to be too high.
The middle ground can be found with a plan designed to cover the cost of a semi-private room in a local nursing home. If you need chronic care, you may receive home care or care in an assisted living apartment and never see the inside of a nursing home, but, typically, a nursing home stay is the most expensive scenario with the exception of extensive home care or round the clock home care. If your insurance covers or nearly covers this worst case scenario, you will have an appropriate level of coverage. After you and your specialist decide on your level of coverage, it will be time to evaluate the affordability of the annual premium. You will know if it is affordable or not. If the premium eats away your principal savings and cannot be paid with the interest you earn each year from your savings then perhaps the insurance is not right for you. In this case, if you need long term care, you would spend down your estate to near zero and apply for Medicaid, or medical welfare.
In going through this process, make sure to find a specialist in long term care insurance. Financial planners are not long term care specialists. To check a financial planner's or agent's experience level just ask them which LTC insurance company will offer coverage to someone who has a diagnosis of Bipolar Disorder. Or, how are autoimmune conditions treated by these companies? Do they know what autoimmune means? Any licensed agent or financial planner can submit an application for a client, but how many specialize in making sure an application comes back as an insurance policy without a large increase in the premiums? This is the job of a long term care insurance specialist. The specialist knows the best companies for each medical condition and the right fit for the specific needs of the client. A client who will retire overseas should apply for a cash only plan or indemnity plan. There are many scenarios where dabblers and stockbrokers can make mistakes that you cannot afford when your family's well-being is at stake.
While investigating your long term care options, give your specialist a chance to help you uncover any reasons that may prevent you from making the right choice. A true specialist is not trying to "sell" you, and this will be apparent to you. The two main reasons individuals and couples reject long term care insurance are denial and cost. Open your self up to exploring the consequences of being in denial or misjudging if you can really afford this insurance. You may become uncomfortable discussing your mortality, but by doing this, you may end up saving the people you love from exhaustion and heartache.
I thought about leaving this next point out of this article because it seems too obvious, but it should still be addressed. Forgive me if the following statement is insulting. Insurance is not free. What I mean by this flippant sounding statement is that we do not receive a refund at the end of our lives for having paid all those years of car insurance, and the same is true for home owner's insurance, disability, health or an expired life insurance policy where upon it's expiration we are still drawing breath. The same is true for long term care insurance. If you are one of the lucky individuals who never uses their long term care insurance policy, you will not receive a refund of your premiums.* This is not a new idea to any of us, but it is worth a mention. If you say no to LTC insurance because you will not get your premiums back when you die, then consider the possibility that your reason for rejection is based on denial because insurance has never been free.
One last point, if you are married and you both apply for long term care insurance, but one of you is not approved for coverage, do not make a knee jerk reaction out of anger or frustration to decide that neither of you should have the insurance. Instead, after learning the news, let the emotions cool off for a few days, and then visit with your specialist to decide the best course of action.
* A return of premium rider is available on most plans at an extra cost. Some plans do return the premium if the policyholder dies prior to attaining a predetermined age.
Wednesday, December 2, 2009
Who Should Buy Long Term Care Insurance?
For many people, they have yet to hear of long term care insurance. Many think immediately of long term disability insurance upon the first mention of ltc insurance, but it is not even close to being the same type of insurance product.
Long term care insurance pays for caregiving, and disability insurance replaces a portion of income. These are two distinct functions. Since disability insurance will typically replace 50%, 60% or 66% of your income, this leaves less money to cover bills that already existed before a person even considers who they will pay for a necessary caregiver.
A caregiver becomes necessary if you are unable to accomplish your activities of daily living. Most people need a caregiver or multiple caregivers if they cannot accomplish two of the recognized activities of daily living. These activities are eating, dressing, bathing, toileting, continence, and transferring (moving from point A to point B unassisted). In some states a seventh activity of daily living is recognized, ambulation and mobility. When a person is unable to do two of these activities without help, if they have long term care insurance, it will begin to pay for a portion or all of the care giving depending on their chosen benefits at the time of application.
So, long term care insurance pays for the caregivers. Disability pays for the household bills. Well, the question now can be asked, who needs long term care insurance? Everybody. It is not just something we should consider when we start to find Bingo incredibly entertaining. Almost 40% of Medicaid recipients using long term care are under the age of 60 years old. Any of us could need care at any time. Young people are diagnosed at an alarming rate with chronic illnesses such as MS or Lupus. We just cannot tell the future.
Some people reading this may think that they should not buy long term care insurance because they can afford care indefinitely. That is a strong argument against buying insurance until you discover that your checkbook cannot make phone calls and schedule five different types of care per week while monitoring how caregivers are performing and treating you. This burden would still fall on your kids, family or close friends. This is a burden. Even if you contracted out for those services by spending more money, you still need to have an entire strategy or plan written out for your kids or family to implement because you may have trouble communicating if you need long term care. Besides, long term care insurance is most affordable to those with larger amounts of savings. Spending $100 to $500 per month for insurance (depending on your age, benefits and health) is better than spending $4000 to $8000 per month for care out of your own pocket. Our long term care insurance site explains how the nuts and bolts of the this insurance works, and if you have less than a certain amount of savings, it may not be right for you. Bottom line, everyone should know about it and investigate it. It is too costly to remain in the dark.
Long term care insurance pays for caregiving, and disability insurance replaces a portion of income. These are two distinct functions. Since disability insurance will typically replace 50%, 60% or 66% of your income, this leaves less money to cover bills that already existed before a person even considers who they will pay for a necessary caregiver.
A caregiver becomes necessary if you are unable to accomplish your activities of daily living. Most people need a caregiver or multiple caregivers if they cannot accomplish two of the recognized activities of daily living. These activities are eating, dressing, bathing, toileting, continence, and transferring (moving from point A to point B unassisted). In some states a seventh activity of daily living is recognized, ambulation and mobility. When a person is unable to do two of these activities without help, if they have long term care insurance, it will begin to pay for a portion or all of the care giving depending on their chosen benefits at the time of application.
So, long term care insurance pays for the caregivers. Disability pays for the household bills. Well, the question now can be asked, who needs long term care insurance? Everybody. It is not just something we should consider when we start to find Bingo incredibly entertaining. Almost 40% of Medicaid recipients using long term care are under the age of 60 years old. Any of us could need care at any time. Young people are diagnosed at an alarming rate with chronic illnesses such as MS or Lupus. We just cannot tell the future.
Some people reading this may think that they should not buy long term care insurance because they can afford care indefinitely. That is a strong argument against buying insurance until you discover that your checkbook cannot make phone calls and schedule five different types of care per week while monitoring how caregivers are performing and treating you. This burden would still fall on your kids, family or close friends. This is a burden. Even if you contracted out for those services by spending more money, you still need to have an entire strategy or plan written out for your kids or family to implement because you may have trouble communicating if you need long term care. Besides, long term care insurance is most affordable to those with larger amounts of savings. Spending $100 to $500 per month for insurance (depending on your age, benefits and health) is better than spending $4000 to $8000 per month for care out of your own pocket. Our long term care insurance site explains how the nuts and bolts of the this insurance works, and if you have less than a certain amount of savings, it may not be right for you. Bottom line, everyone should know about it and investigate it. It is too costly to remain in the dark.
Monday, November 30, 2009
Long Term Care: Concerns & Quotes
In many cases, consumers don't have access to all of the information necessary to make the best possible decision about long term care insurance. Many people don't realize that the need for long term care can strike at any time. My mission is to educate and protect Americans from the devastating costs of long term care. However, the failure to discuss or develop an appropriate plan for the high cost is causing many American families to be unprepared to meet the high costs of long-term care. Generally, long term care insurance is required when individuals can no longer perform the tasks of ordinary living, independently.
By helping to protect your assets, and giving you choice and control over where you receive care including in your home. LTC insurance helps you and your family confront the future with confidence. Long-term care insurance is important coverage that provides valuable support and financial resources that help cover the cost of long-term care you might need in the event of an illness, accident, or through the normal effects of aging. Evaluate your goals and choose the strategy that's right for you.
There are three forms of long term care financing: Medicaid, private pay or insurance. What happens to your family finances without LTC insurance protection. Will you be a crushing burden on your family. There is no need to search multiple companies in order to find the best possible insurance policy. You can do this quickly and easily with assistance from a comprehensive long term care insurance website. Find the most appropriate policy for your life circumstances. If you use our site, you will need to provide the information necessary for us to provide you with a long term care insurance comparison. Our website is one of the most user-friendly, thorough and up-to-date sources of long term care insurance information on the Internet. When you complete your quote request, you'll receive up to 10 policy insurance quotes allowing you to choose the plan that's right for you. We have developed a comprehensive system to arm you with the best long term care insurance information, and remember, you can't get long term care insurance once you've been diagnosed with certain health problems, so buying long term care insurance protection at an early age secures your future.
Many degenerative diseases, like Multiple Sclerosis, Parkinson’s and Arthritis, are affecting people at younger ages. While many older people do need long term care, it is important that younger people think about securing their futures, too. Not many of us have enough income to save for future long term care costs, so we must protect ourselves with insurance. State Medicaid programs are already financially stressed, as Uncle Sam keeps cutting Medicaid funding. States simply won't have the money to provide Medicaid for those in need. The Baby Boomers are fast on their heels. States such as Arizona, Florida and New York are feeling the impact of the ever-expanding group of 70+ year olds.
Due to new breakthroughs in health fields, our population is aging. LTC insurance was originally designed to cover stays in skilled nursing homes only, but these days, LTC insurance can also cover assisted living facilities, adult daycare and even home care, which are desirable options for many folks.
By helping to protect your assets, and giving you choice and control over where you receive care including in your home. LTC insurance helps you and your family confront the future with confidence. Long-term care insurance is important coverage that provides valuable support and financial resources that help cover the cost of long-term care you might need in the event of an illness, accident, or through the normal effects of aging. Evaluate your goals and choose the strategy that's right for you.
There are three forms of long term care financing: Medicaid, private pay or insurance. What happens to your family finances without LTC insurance protection. Will you be a crushing burden on your family. There is no need to search multiple companies in order to find the best possible insurance policy. You can do this quickly and easily with assistance from a comprehensive long term care insurance website. Find the most appropriate policy for your life circumstances. If you use our site, you will need to provide the information necessary for us to provide you with a long term care insurance comparison. Our website is one of the most user-friendly, thorough and up-to-date sources of long term care insurance information on the Internet. When you complete your quote request, you'll receive up to 10 policy insurance quotes allowing you to choose the plan that's right for you. We have developed a comprehensive system to arm you with the best long term care insurance information, and remember, you can't get long term care insurance once you've been diagnosed with certain health problems, so buying long term care insurance protection at an early age secures your future.
Many degenerative diseases, like Multiple Sclerosis, Parkinson’s and Arthritis, are affecting people at younger ages. While many older people do need long term care, it is important that younger people think about securing their futures, too. Not many of us have enough income to save for future long term care costs, so we must protect ourselves with insurance. State Medicaid programs are already financially stressed, as Uncle Sam keeps cutting Medicaid funding. States simply won't have the money to provide Medicaid for those in need. The Baby Boomers are fast on their heels. States such as Arizona, Florida and New York are feeling the impact of the ever-expanding group of 70+ year olds.
Due to new breakthroughs in health fields, our population is aging. LTC insurance was originally designed to cover stays in skilled nursing homes only, but these days, LTC insurance can also cover assisted living facilities, adult daycare and even home care, which are desirable options for many folks.
Monday, October 19, 2009
Long Term Care Insurance - Why
Everyone needs to get serious about long term care insurance.
I am not referring to just Baby Boomers or people in the midst of retirement planning; I mean everyone who is old enough to read this blog.
Individuals are getting wiped out financially and emotionally by long term care every day. People think that youth or a large nest egg can keep this threat at bay, but they could not be more mistaken. Get into a car accident or receive bad news from your doctor, and you may join the millions already suffering in nursing homes throughout every state across our country.
Long term care is defined as ,"the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. The care may be provided in environments ranging from institutions to private homes. Long-term care services usually include symptomatic treatment, maintenance, and rehabilitation for patients of all age groups."
Doctors consider long term care to be care that exceeds 90 days with a poor prognosis for recovery or none at all.
Disability insurance replaces your income, but who pays for the people who come in to your home to get you out of bed, bathe, clothe and feed you if your disability is so dire that you cannot do those activities of daily living yourself?
Long term care insurance pays for these caregivers amongst other important services and potential modifications to your home, i.e. support bars in your shower or a wheelchair ramp. These long term care services can cost $40,000 to $100,000 per year depending on where you live. How long can you survive without going bankrupt with out-of-pocket expense that large? If you do file for bankruptcy, do you know where your long term care takes place going forward? A nursing home. Medicaid will start to pay for your long term care once you are completely broke, but they will determine where a bed is available for you. Sometimes, the nearest Medicaid bed can be many miles away from your family.
This could happen to any person alive today. It is not just the elderly who need to learn about long term care and the insurance designed to protect people from it's extreme costs.
A good place to start learning is our long term care insurance website. I look forward to writing more on this critical subject. Please stay tuned.
I am not referring to just Baby Boomers or people in the midst of retirement planning; I mean everyone who is old enough to read this blog.
Individuals are getting wiped out financially and emotionally by long term care every day. People think that youth or a large nest egg can keep this threat at bay, but they could not be more mistaken. Get into a car accident or receive bad news from your doctor, and you may join the millions already suffering in nursing homes throughout every state across our country.
Long term care is defined as ,"the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. The care may be provided in environments ranging from institutions to private homes. Long-term care services usually include symptomatic treatment, maintenance, and rehabilitation for patients of all age groups."
Doctors consider long term care to be care that exceeds 90 days with a poor prognosis for recovery or none at all.
Disability insurance replaces your income, but who pays for the people who come in to your home to get you out of bed, bathe, clothe and feed you if your disability is so dire that you cannot do those activities of daily living yourself?
Long term care insurance pays for these caregivers amongst other important services and potential modifications to your home, i.e. support bars in your shower or a wheelchair ramp. These long term care services can cost $40,000 to $100,000 per year depending on where you live. How long can you survive without going bankrupt with out-of-pocket expense that large? If you do file for bankruptcy, do you know where your long term care takes place going forward? A nursing home. Medicaid will start to pay for your long term care once you are completely broke, but they will determine where a bed is available for you. Sometimes, the nearest Medicaid bed can be many miles away from your family.
This could happen to any person alive today. It is not just the elderly who need to learn about long term care and the insurance designed to protect people from it's extreme costs.
A good place to start learning is our long term care insurance website. I look forward to writing more on this critical subject. Please stay tuned.
Subscribe to:
Posts (Atom)
