Category Archives: Annuities

Do Long Term Care Insurance Numbers Make Sense for The Policyholder?

Long Term Care PricesAccording to a recent article published by the National Association of Health Underwriters it was disclosed that, “a 60-year-old who pays premiums through age 82 (on a statistically representative policy), then show how 22-years of premium payments would quickly be returned after just five months on claim. By comparison, a 60-year-old without insurance would have to set aside $1,666 each month (at 2% interest) to achieve what our LTCI policyholder can leverage with just $188 per month” (Forman, 2015, pp 4-5).

Additional statistics were given in this article that spoke to the growth of long term care insurance numbers, not only in California, but also across the country. As it stands right now, there is an estimated face value of policies in force that is $1.98 Trillion Dollars. The NAHU article talks about the long-term care industry and claims experience, based on the total face value premium of just under 2 Trillion, it is estimated that just under $700 Billion Dollars of claims will be paid out on the current policies in force. The article offers a comparison to its most recent statistic that in the US, in 2010 roughly $210 Billion Dollars was paid out in long term care insurance claims.

It is clear that the long term care insurance need is in growth mode as more and more baby boomers begin looking at their future, and more importantly, the quality of care they will receive when no longer able to care for themselves independently, or with a little assistance. Long term care insurance is not always the most fun conversation to have, and with the complex and often confusing system in California, it can be an uphill battle.

It is important when planning your future to consider the help of a licensed and qualified professional. You already use doctors to help you heal, accountants to help you with financial records, and attorneys to assist with legal concerns; it is time to enlist the help of a California long-term care specialist so you can make an educated decision about your future health care needs.

Fill out the form to the right, get your guide to LTCI and contact your California Long Term Care Specialist today and get started with your planning. This service is Free!

Reference:

Forman, S.D., (June 2015) “Dog Bites Man”, National Association of Health Underwriters, retrieved 08/02/2015 at http://newsmanager.commpartners.com/nahultci/issues/2015-06-16/3.html

Annuities and Long Term Care

Are you someone who thinks there’s absolutely nothing wrong with having your cake and eating it to?  We agree!  And, certainly, the best way to describe annuities with long term care riders is to use this cake analogy. 

Why Long Term Care Annuities Were Invented

What frustrates many folks (about paying long term care insurance premiums) is that they have to pay money for something they hope they never have to use – ‘tis the way with all insurance.  However, we are happy to announce that there’s good news.

Instead of losing your hard earned dollars, you can purchase an annuity with long term care benefits. 

Make sense?  Read on to find out how these annuities with LTC riders work.

How Annuities with Long Term Care Riders Work

If a long term care annuity is a good fit for you, you’d put a lump sum of money (e.g. $50,000 or $100,000) into an annuity.  You then receive an income stream from that annuity – part of that income goes into a long term care “pot” and part of that income can be used however you’d like.

  • You can choose between immediate annuities and deferred annuities.  
  • Your LTC benefits depend upon how much you put into the annuity. The benefits may be enough to pay for some or all of your care, depending on the income stream you chose to purchase.
  • If you die without having used that long term care pot, the money goes to your loved ones.

Here’s Your Next Step

Because it’s important to analyze whether long term care annuities are right for you – or not, we invite you to call our offices. 

  • At no charge and with no obligation, we’ll work through your paying for long term care options.
  • If long term care annuity products are right for you, we’ll help you select the best fit.  If not, we’ll point you in the right direction.

To find out whether long term care annuities are a good fit for you, we invite you to contact us and let us help with your plans to protect yourself, your assets and family.  We welcome your call now.