Author Archives: Katie

Long Term Care Insurance in Estate Planning: A Key Piece to the Puzzle

When people reach their fifties, they typically begin to consider estate planning. One of the main elements which needs to be taken into account during this planning, is the living will. It is a vital part that gives you and your family peace of mind for whatever circumstances may happen. The living will is not something that will be necessarily easy for yourself or your family, since it confronts you with your own mortality. However, it is essential in order to have your wishes carried out on your behalf and to have your care covered financially. 

What is a Living Will?

If something should happen to you, it is essential that your relatives are informed about your wishes. This is what a living will is for; it displays your wishes regarding prolonging medical treatments. It informs your relatives, but also healthcare workers, if you are no longer capable of conveying your wishes.

A living will is usually supported by two physicians, declaring their support when you are suffering from a terminal illness or permanent vegetative state. It is also a document that can give someone power of attorney when you are no longer capable of making decisions about your current quality of life and medical treatments. This might be a difficult conversation with the person you will be entrusting this to, but again, it is essential to ensure the comfort and peace of mind for your family and loved ones. Even though it is a difficult thing to discuss, you must make sure that someone is aware of your living will. If nobody knows, it will be of no use when something happens to you. Once you write your living will, you need to ensure it is financially covered.

What is Long Term Care Insurance and the benefits?

Long Term Care Insurance will cover medical costs, and even home care, something most medical insurance plans do not cover. When you encounter serious medical costs at a point later in life, it might eat up your entire pension and even your savings. So why not prepare yourself for these types of scenarios? Make sure you are covered, but also make sure your family is protected by choosing a long term care insurance plan.

Role of Long term care insurance in estate planning

We cannot predict what will happen in our lives. We could become gravely ill and encounter serious medical costs. We could even be in need of a live-in health professional. Although these are things we do not like to think about, we want to be prepared if the worst does happen.

The long term care insurance helps to pay for assisted living, nursing facilities or even physiotherapy if you have been injured in a serious accident. It also covers illnesses such as Alzheimer’s. You won’t have to worry about paying for a care worker that will help you or a relative bath, dress and even eat. The long term care insurance plan will be there in your time of need and not take away the hard earned money that you have been saving for years. Including long term insurance in your living will, as a means of covering potential costs for you and your family in the future, is a key piece to the estate planning puzzle.

To speak to a representative or schedule an appointment, simply fill out the form to the right to contact us.

Affordable California Long Term Care Insurance Premiums

Affordable LTCI Premiums

Katie O’ Rourke
Managing Partner

My husband and I are in our fifties.  A few years ago we were looking for affordable California Long Term Care premiums. We did our research,  decided to take the plunge and purchased Long Term Care insurance (LTCI).  Most of our friends are in the same age range.  I am often asked at social events how much the yearly premium is and people are surprised to hear that our premiums for our plans are $100 each per month. 

The average premium for LTCI is between $150 – $300 per month.  Everyone I talk to has heard that LTCI is expensive and expects to hear a number much higher. However, with the help of a licensed agent, you can find affordable California Long Term Care Insurance for around $150 per month.  

The premium depends on many factors. For example my car insurance could be a lot more expensive than it is but I chose coverage that keeps the premium lower and searched for discounts that would help, like a good student discount for our teenager.  LTCI is similar.  Some companies offer better deals than others depending on your situation.  Your health and marital status can impact the premium.  However, the biggest factor besides the coverage you select is your age; the younger you are when you purchase LTCI the lower the premium you pay throughout your lifetime. 

Besides the peace of mind, another thing that helps us my husband and I feel better about purchasing LTCI is that the premiums are tax deductible as a business expense. 

What I want you to take away from this blog is despite the conventional thinking, affordable California Long Term Care Insurance premiums are possible. We can find the best plan for your budget and give you details on the tax treatment for individuals and businesses.

To speak to a representative or schedule an appointment, simply fill out the form to the right to contact us.

Long Term Care Insurance and Healthcare Professionals

Ask most any nurse, doctors, or health care professionals the value of long-term care planning, and you are bound to get stories of joy, love, compassion, perseverance. Ask again, and you may get the stories of sadness, desperation, fear, and frustration felt by the families that failed to plan.

Healthcare professionals have a unique perspective on Long Term Care planning. Faced with daily exposure to illness, injury, disease, and the effects of old age that create a long-term care need makes them more inclined to think “what if?” about their planning needs.

Interestingly, if you were to take a random survey of those that had long-term care plans in place against those that do not, you would most likely find health care professionals do not have any plan in place, or have an inadequate or overpriced plan through their employer or group.

Some organizations (hospitals, unions…etc.) offer a negotiated group offering for Long-term care protection to healthcare professionals but this is not always the best rate available to them. It is highly recommend that before committing to group coverage, health professionals should consult with an independent agency to explore all their options.

In addition, with the constant advances in medical science, people are surviving more conditions than in the past, but facing an increased need for ongoing care. Protecting your choices for ongoing care with long-term care plans is where you make the best decision.

There are some basic considerations when thinking about long-term care planning. Healthcare professionals are often advised about patient’s Living Wills. A living will tells which treatment you want if your life is threatened, including Dialysis and breathing machines, resuscitation if you stop breathing or if your heart stops, and/or tube feeding.

Often, patients and their families will reveal information about their intentions for long-term caregiving too. Unfortunately, many times patients and families will ask for advice because no plans have been made for how to manage a long-term care event or how to pay for it.

The government reports that 70% of people that reach age 65 will have a long-term care event during their remaining lifetime. The majority of the people needing care will be woman. Also noteworthy is that 37% of people needing long-term care services are under 65.

Nurses are a particularly vulnerable group because their job demands can create musculoskeletal problems. The American Nurses Association published a report in 2011 that showed 42% of nurses surveyed had been injured on the job at least once in the last 12 months.

Healthcare professionals are often motivated to pursue their chosen field because of their motivation to help. That generous spirit can be a burden late in life for even the most generous.

For this reason we find that we have had a significant number of people from the healthcare field investigate Long Term Care plans and make those plans part of their safety and security. A Long Term Care plan secures their income, assets and futures. Take a moment today and see how simple planning for long-term care can be: fill out the form to the right for your free guide.

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

According 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

What Are These Celebrities Saying About Long Term Care?

Angela Basset, Rob Lowe, Jim Nantz, Maria Shriver, Zachary Quinto, and Maggie Gyllenhaal recently shared their experiences and thoughts on the issue of “having that conversation” with a loved one regarding long term care planning.

We have helped over 30,000 people with their long-term care coverage needs.

Fill out our short form to the right of this page, download your Free guide and let one of our specialists help you discover all options available to you. This service is absolutely FREE!

According to a February 2015 ABC News story, “Bassett, 56, had to deal with different long-term care situations involving both her mother, Betty Jane, who died last year, and mother-in-law, who was diagnosed with ALS and is now living with her family. “I know the importance of it,” she said of having the discussion with your kids or other loved ones. “It’s absolutely something we are each going to deal with, our parents as well as ourselves, one day.”

Rob Lowe made a point about YOU being the architect of your future, and shared a story about his father who not only one a prestigious golf and tennis championship, but who also received a diagnosis of non-Hodgkin’s lymphoma that very same week.

No one actually knows how they are going to age, if they will get sick, require care, or even if they outlive all of their family. Having the conversation about long-term care can be difficult because you need to admit that at some point like 70% of the 65 and older population, you may need some help. Angela Basset and Rob Lowe also pointed out that neither Medicare, the Affordable Care Act, nor neither do the vast majority of other health care insurance policies cover long-term care medical expenses.

California is also a state with a very scattered long-term care network. There are over a 100 program options with 20 offices that administer those programs. There are currently discussions on reworking the State long-term care systems to cut back on waste, confusion, and being able to meet the needs of a growing culturally diverse population.

Long term care planning includes certain medical needs that most health insurance companies are not equipped to take care of, that is why it is important; as the architect of your future, that you get a solid blueprint in place of what your future is going to look like.

That is why California Long Term Care Insurance Agency is here to help you understand all of your options and find the best possible plan designed to fit your needs now, and in the future.

Fill out our short form to the right of this page, download your Free guide and let one of our specialists help you discover all options available to you. This service is absolutely FREE!

ABC News Source: http://abcnews.go.com/Entertainment/angela-bassett-long-term-care-conversation/story?id=29221506

Choice & Dignity

long term care insurance can help you. Aides can come into your home, but these costs are not usually covered by ordinary health insurance policies and Medicare. These expenses can quickly deplete your nest egg, no matter how much you’ve saved. This is when long term care insurance can help.

Long term care insurance (LTCI) can help cover the cost of care you receive at home from nurses’ aides, home health aides and therapists. It can help cover services in an assisted living facility and, if you require skilled care, nursing home expenses can be covered.

It helps you maintain your dignity and financial freedom and gives you the flexibility to participate in making choices that impact your care — about the services you receive, where you receive them and who provides the care you need.

Someone who has a chronic condition or is returning from a stay in a hospital or rehabilitation facility may need these services, which can be covered by long term care insurance:

Nursing Home Care

Nursing homes give residents skilled nursing care 24 hours a day, along with medication monitoring, rehabilitation and physical therapy, room and board and personal care and supervision.

Skilled In-Home Nursing Care

In-home and live-in nurses provide skilled nursing services like clinical assessment and monitoring, intravenous therapy, ventilator and tracheotomy management and cardiac care.

Adult Day Care

Based in the community, adult day care centers provide daytime supervision, giving family caregivers much needed assistance. Along with social activities, they may provide health services and therapy.

Hospice Care

Hospice care furnishes medical services and emotional support for those in the last stages of terminal illnesses. Hospice helps patients manage their symptoms so they can continue an alert, pain-free life and spend their final days with dignity, surrounded by loved ones. It also helps their family members with the practical details and emotional challenges of caring for a dying loved one. These programs offer services 24 hours a day, 7 days a week, in homes, hospice centers, nursing homes, long-term care facilities and hospitals.

Personal and Home Health Aides

These aides help the elderly, disabled or ill with personal care like bathing, dressing, eating and taking medication. By receiving these services at home, people can remain in the comfort of their own homes longer

Homemaker Services

These aides help people complete those household tasks that they can’t manage alone, like housecleaning, cooking and running errands, making it possible for their clients to continue to live independently in their own homes.

Assisted Living Facilities

Assisted living facilities (or residential care facilities) can provide personal care and health services for people who may need assistance with activities of daily living, but not the level of care provided by a nursing home. Assisted living is an intermediate level of long term care, not an alternative to a nursing home.

Ready to learn more? Call us today at (800) 303-1527.

Life Insurance with Long Term Care Benefits

If traditional long term care insurance premiums and policies aren’t a good fit for you, but you still want to protect your assets and your family against the exorbitant costs of long term care, we have a solution for your consideration:  Life insurance with long term care benefits.

If You Don’t Use It, You Don’t Lose It

The biggest complaint about long term care insurance is that no one wants to pay all those premiums and end up not needing the insurance coverage – after all, none of us want to end up in a nursing home and if we can avoid it, we will.

To meet that very concern, long term care insurance professionals have come up with a solution.  It’s life insurance with a long term care rider.  This product is referred to as a “hybrid” because it’s a combination of life insurance and long term care insurance.

Here’s What Our Clients Love About Life Insurance with Long Term Care Benefits

You absolutely need to consult with a professional to make sure the hybrid is a good fit for you situation, but, in the meantime, here are the things our clients love about life insurance with long term care rider in California.

  • The best part of the hybrid is that if you don’t use the long term care benefits, your loved ones get a big payout.
  • Your premium payments don’t go to waste.
  • Your premiums are guaranteed; they will NEVER be raised.

Here’s What to Do Next

Your next step is to determine which kind of long term care insurance product is the best fit for you, if any.  

Life insurance with long term care benefits works for many folks.  To find out if it is right for you, we welcome your call , contact us.  During our conversation we’ll chat about the best way for you to pay for long term care.  There is no fee for this conversation, no obligation, and never any pressure to buy.  It’s okay to call right now.

 

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.

Long Term Care Insurance – Answers to Common Questions in N California

Long Term Care Insurance – Answers to Common Questions

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.

Please visit www.californialongtermcare.com if you would like more information regarding Long Term Care Insurance.

Insure Your Retirement Funds with Long Term Care Insurance in California

Insuring Your Retirement Funds

It might sound strange to be told to insure your retirement funds, but after working hard and diligently saving all that money, wouldn’t you want to make sure that the funds will be there for you when you need them?

As you move into retirement, you are also moving towards age-related health problems. Events beyond your control, such as stroke, heart disease and cognitive impairment can change one’s way of life.

Many people are under the impression that government programs such as Medicare or Medicaid will cover the costs of long term care. Medicare will cover some skilled nursing for a limited period. Medicaid will only cover long term care costs for impoverished individuals. Health insurance does not cover nursing home or other long term care costs except for short-term rehabilitation.

Out of pocket costs for needed long term care resulting from age-related health problems such as home care, nursing home or assisted living will quickly deplete retirement funds and leave the remaining healthy spouse impoverished.

Long term care insurance is the answer to insure your retirement funds and provide protection so that the money stays intact and at the same time insurance provides a way to pay for elder care services.

In his book “The Total Money Makeover ,” Dave Ramsey says of long term care insurance, “If you are over sixty, buy long term care insurance to cover in-home care or nursing home care. The average nursing home stay costs $100,000 per year, which will crack and scramble a nest egg in a heartbeat. Dad in the nursing home can use up Mom’s $250,000 savings in just a few short years.”

Long term care Insurance to insure your retirement makes sense. You insure your car against damage, your home against fire, and you purchase life insurance, so why not insure what can be the largest and most devastating risk to you and your family? And unlike the other risks you insure against, long term care is the most likely to happen. Long term care insurance will also help you keep your independence and dignity and allow you to make choices about where you want to spend your final years.

Here are some specific reasons for buying long term care insurance:

•  If you are married and you have a need for long term care, your spouse will be able to pay for an outside caregiver and receive needed rest and recuperation.

•  If your children promise to take care of you, then when the time comes that you need care, insurance will help them do that by paying for aides to help with tasks such as bathing and incontinence.

•  If you are single and a need for long term care arises and you have no family who can help you, insurance can pay for and coordinate that care.

•  If you have the desire to leave assets behind when you die, insurance will help preserve those assets from the cost of long term care.

“You should also consider buying long term care insurance at a younger age. There is an advantage for doing this. The premium is lower.

For example, a person, currently age 45, buying a typical policy with a spouse, could spend $21,146 in total premiums to age 78.

Suppose this same person chooses to wait to buy the equivalent coverage at age 65.

If that same policy were available in the future, the couple that waits could pay $52,566 in total premiums over their 13 remaining years to age 78. Because they waited, they would pay 2 ½ times more for the same policy.

In addition to the rates going up with age, the health qualifications will be stricter and development of health problems related to aging may even disqualify a person from obtaining a policy.” “The 4 Steps of Long Term Care Planning,” National Care Planning Council

There are dozens of long term care insurance companies selling a multitude of different policy options. It can become very confusing. For each policy, there are literally thousands of benefit combinations for home care, assisted living, nursing home care, waiting periods, payment amounts, inflation riders, and the list goes on.

You can take the time to do your own research or find a competent long term care insurance agent.

Here is a checklist of some of the things you need to know before you purchase a policy.

LONG TERM CARE INSURANCE BUYING CHECKLIST

The more “yes” answers you get the better off you are.

1) Is the insurance company rated by A. M. Best (the rating company)

with a rating of at least A, A+ or A++?

2) Is it a large diversified company with deep pockets and selling more

than just long term care insurance?

3) Is the insurance representative an expert in long term care

insurance? (Because of its complexity, almost all LTCi experts only

sell LTCi; they seldom sell anything else.)

4) Does the representative have a degree and/or industry financial

designations?

5) Does the representative own a personal long term care insurance

policy for himself or herself?

6) Is the policy you like tax qualified, and if not, do you understand the

ramifications?

7) Are there at least 6 ADL’s (Activities of Daily Living) allowed for

in the benefit certification?

8 Does it allow “standby assistance”?

9) Is it a “pool of money” as opposed to a “stated period”?

10) Is it “integrated” as opposed to “2-pool”? (2-pool is not allowed in

many states.)

11) Do you understand how the elimination period works? (This is

extremely important.)

12) Does it have prohibitive cost containment provisions?

13) Is there any “capping” or other future reduction of automatic benefit

increase riders?

14) Do you understand how the waiver of premium works?

15) Does the assisted living facility benefit pay the same as for nursing

home?

16) Are you buying adequate home care coverage?

17) Does the company have a history of premium rate stability without

periodic increases?

18) Does the policy pay for homemaker services?

19) Does the policy offer an alternative plan of care for services that

don’t exist today?

The National Care Planning Council provides a list of long term care insurance specialists and on its website at www.longtermcarelink.net .

Visit us at www.californialongtermcare.com for help with your retirement needs in California.