Author Archives: Katie

Return of Premium and Repositioning for Long Term Care Insurance

Affordable LTCI Premiums

Katie O’ Rourke
Managing Partner

What if I buy a long term care insurance policy, pay them premiums for 10, 15. 20 years and never use it? Does that mean I lose money? One of the things that makes people hesitate to purchase Long Term Care (LTC) insurance is the possibility that they may never need to use it.  This is really more of a hope since 70% of us will need care during our lives.

This is very valid concern, and many people feel the same way. What most people find though is that when a catastrophic claim happens, they think less about the few dollars they saved switching carriers and more about if they have the best policy that is going to cover their losses and get them even again. Insurance professionals know that the only time their clients are not worried about insurance premiums is when they call in with a claim and need help.

 Have you ever taken an insurance inventory? Think about all the policies you have right now… do you own a car and have car insurance? How about a home with homeowners insurance? Do you have life insurance through work or a private policy on someone you love? Do you carry health insurance, maybe dental and vision coverage?

 If insurance is so expensive and we worry about the “what if” we never use it, then why buy insurance at all? If you look at the entire business of insurance, it is based on losses and insuring against the “what-ifs” that most people prefer to not think about. Insurance companies understand this, and so to make it easier, they have developed policies that protect their clients, and give them relief should they never actually use certain policies.

 Frankly, I hope that planning for long-term care means I will not need it. (I also hope I do not need to use my homeowners, auto and health insurance.)  There are few ways to solve this problem.  One is to get coverage that includes a Return of Premium feature.  If you never need to use the policy then the premiums are returned to your estate or beneficiary. 

 Another option is to move the cash value of an existing Life insurance or Annuity into a policy that includes LTC coverage.  This repositioning of the value can provide coverage at no cost.  A final thought is to purchase a Life insurance or annuity plan with an LTC rider.  Then you get the money no matter what happens between now and then.  There are many ways to plan for the worst and hope for the best. 

 Some of these policies can be complex and confusing, and that is why agents specialize in certain types of insurance, attend on-going education each year to stay on top of laws, policy changes, and regulatory matters. When you want to buy an insurance policy that will not only cover you in the event of a loss, but also give you your money back should you never use it, you ought to speak to a licensed and qualified professional who specializes in this coverage. You wouldn’t go to a brain doctor for heart surgery right?

 That is why we screen all of our agents based on their commitment to the industry, industry training credentials, and areas of expertise. When you speak to one of our agents today about a Return of Premium policy, or Rider based product, you are going to know you have the most qualified person to help answer your unique questions, and provide you with the best options to choose from.

 Go ahead and get in touch with our specialists today, simply enter your details on the right hand side and we look forward to speaking to you shortly to give you the information you need.

Is LTC Insurance right for me?

Long Term Care Insurance

how do i know if long term care insurance is right for me?Deciding to buy a long-term care insurance policy is an important decision. These policies can help pay for many types of long-term care, but they are not for everyone. We will give you some guidelines commonly accepted in the next section to help you determine if this type of policy may be right for you. If you decide to buy, make sure you compare the costs and benefits of policies from different insurance companies and only those with top ratings. Our Long Term Care Insurance specialists are available to help you with this process.

What does it cover?

Long-term care insurance policies typically cover nursing home stays, community services such as adult day care, in-home care and assisted living facilities. Be sure to consider your desired type of care and choose a policy that covers you in that area. In other words, if your plan is to stay with your daughter in her home, then be sure you will be able to receive benefits in that setting.

A policy covering three to five years of care is the most cost-effective option for most people. However, if you are concerned about care for Alzheimers disease or other types of dementia, you may want to consider more comprehensive coverage.

Is it right for me?

Generally, financial planners recommend considering long-term care insurance if you own assets of at least $75,000 (this does not include your home or car); have annual retirement income of at least $25,000 to $35,000 for an individual or $35,000 to $50,000 for a couple; or are able to pay premiums without financial difficulty, even if premiums increase over time. Long-term care insurance is probably not for you if these factors do not apply to you.

Long-term care insurance can be expensive, depending on your age and health status when you buy the policy and how much coverage you want. Policy costs also vary according to the benefits you choose. It is better to buy long-term care insurance at a younger age when premiums are lower.

Where to go from here?

If you feel that you would like personal assistance with Long Term Care Insurance or other planning issues, we are here to help.

Our LTCI specialists make your shopping experience easy, by helping compare the costs and benefits of policies from select insurance companies. To speak to a representative or schedule an appointment, simply contact us.

Why Private Long-Term Care Insurance in California?

Private Long Term Care Insurance?
Written By: Marilyn Katz

The Need for Long Term Care Insurance

Do you need long term care insurance (LTC or LTCi) to help you meet your retirement and long term financial plans? I think that you are making a big gamble if you do not consider how you will pay for the possibility of needing some sort of long term nursing care or assisted living. Consider how this is becoming an even bigger risk as we age.

We are Living Longer, but Will Be More Likely to Need Care

Americans are living longer, and this is good news. You have probably heard the news that many term life insurers are actually reducing premiums because we have increased our average life spans. However, that happy news also comes with an increased chance we will spend an increased amount of time with nursing care. In fact, experts estimate that 50 – 70 percent of us will need some help as we age!

Nursing or Living Care Costs Money

Live in help, and especially nursing care, is not cheap. A traditional nursing home can cost $4,000 a month or more. That is in today’s dollars, and costs have been increasing. Many families have seen a lifetime of savings evaporate because of an extended stay in a nursing facility.

Other forms of care may not be much cheaper. If a person gets care from home health professionals, it can also cost thousands a month depending upon the type of care. A few hours a week to prepare meals may not cost much, but if care is needed 24 hours a day, imagine the cost of paying for 3 shifts of home health care workers that have to be there 7 days a week!

Assisted living facilities are usually less expensive, but still can cost thousands of dollars each month. And people must be qualified to enter them. Others may simply be too ill for assisted living, and must go to a more expensive full service nursing facility. It is impossible to predict these things.

Does Health Insurance Cover Extended Nursing Care?

Most health insurance, including Medicare, does not cover long term stays in a facility. Medicare covers a few months, but then stops paying. Medicaid, the federal health insurance for poor people, kicks in only after most assets are depleted. Health insurance is usually not a good solution to this problem.

What Kinds of LTCI Can You Find?

What kinds of LTCI can you find on the market? Major insurers offer a variety of policies. Waiting periods, daily rates, and covered maximum stays vary. Some cover any type of care that an individual needs, while others only cover specific types of care. One policy may only cover a nursing facility, while other policies may cover any choice that is made that makes sense for the covered person.

How Much Does Long Term Care Insurance Cost?

Again, rates will depend upon the type of policy you find, the insurer, and your local area. Beyond that, an applicant’s age, general health, and health status will affect the cost. You can find some simple online insurance quote forms to help you compare the policies and prices that you can find in your area.

If you have questions regarding Long-Term Care Insurance, please visit us at www.californialongtermcare.com.

What is Long-Term Care Insurance? Find out more about your options in California

Traditional Long-Term Care Insurance

Traditional Long-Term Care Insurance used to be viewed as “nursing home insurance” because most policies from 15 years ago only offered that one option. Today, that is hardly the case.  Long-term care insurance now covers adult day care, in-home care, assisted living, and nursing home care. These policies are considered comprehensive in nature. Now we refer to long-term care insurance as “lifestyle insurance”.

Who CAN’T Get Long-Term Care Insurance?

 

Underwriting Explained

When you apply for a Long-Term Care Insurance plan, you must go through underwriting. Underwriting means that the company will check your medical records to determine what medical problems you may currently have, or have had in the past. They want to know your overall health history. If you have been diagnosed with short-term memory loss, Alzheimer’s disease, Parkinson’s disease, Multiple Sclerosis, Lou Gehrig’s disease, or if you have had a stroke with permanent physical impairment, you may not qualify. People who have survived cancer and are treatment free for a certain length of time can often qualify. Each insurance company has their own underwriting guidelines. It is best to talk to your agent, or call the company directly with any specific questions about health issues. Height and weight are also a consideration when applying. Sometimes the insurance company will send a registered nurse to the home to ask a few questions, and take some more medical history, or they may just call on the phone for a brief interview.

Qualifying to USE the Benefits of a Long-Term Care Insurance Plan

 

Activities of Daily Living

When it’s time to use your tax qualified Long-Term Care Insurance plan (taxes to be discussed in a later chapter), the insured person must need help or substantial assistance with 2 out of 6 activities of daily living for a period of 90 days or greater. This need for care must be certified by a licensed healthcare practitioner such as a nurse or physician.

These activities of daily living include:

Bathing

Dressing

Eating

Toileting

Continence

Transferring (i.e. moving from the bed to a chair)

Or, the insured must have a cognitive impairment, like Alzheimer’s disease or dementia. A cognitive impairment means that although a person may be physically able to perform all of the activities listed above, they cannot remember or rationalize how to do those activities. One example would be bathing. Sometimes people with dementia are physically able to take a bath, but can’t remember to do so, or can’t remember why this is important. Or, perhaps when getting dressed, they put on five shirts instead of one.

 

Comprehensive vs. Facility Only Plans

 

Comprehensive Plans

A comprehensive plan covers all aspects of long-term care: in-home care, adult day care, assisted living, and nursing home care. These plans are designed to help people stay at home longer, and also assist them with transitions to other levels of care as needed. Most consumers want to stay at home for as long as possible. A comprehensive plan will satisfy that desire.

Facility Only Coverage

Facility only plans are still available on the market today. Facility only plans pay for just that, facility care only. Usually this includes assisted living and nursing home care. A facility only plan makes the most sense for folks who do not have a large network of family and friends around them, and for people who know that this may be their only option in the future.  Facility only plans are less costly than comprehensive plans, but again, offer payment only for nursing home and assisted living care. The insured person cannot live at home and use the benefits of a facility only plan.

 

Benefit Period

The benefit period is the length of time the policy will actually pay for care. There are many different benefit periods available including 2 years, 3 years, 4 years, 5 years, 7 years, 10 years, and unlimited lifetime coverage. When purchasing long-term care insurance, keep in mind that premiums are paid for potentially the next 20 years (or until the policy holder needs care), but the plan will only last about as long as the benefit period originally selected.

People often ask, “How do I know which benefit period to choose?” “How do I know how long I might need care?”

Obviously, there is no way to really determine how long a person might need care. However, the best advice is for each individual to take a look at their own personal health history, and their family history.  If there is a history of chronic disease such as Alzheimer’s, Parkinson’s, MS, or Lou Gehrig’s disease, it might be worthwhile to consider a longer benefit period.

Visit us at www.californialongtermcare.com with any questions, and for more information on obtaining Long-Term Care Insurance in California.

Alzheimer’s research and Long Term Care Coverage

CB106024_LoRes2-300x200Alzheimer’s and Dementia can be some of the hardest health challenges for families to cope with. They are also the hardest to accept and recognize as the child of a parent who is starting to become forgetful, or seems to misplace things more frequently. They can also be incredibly expensive conditions to manage because of the 24-hour care that is needed in the later stages of the condition.

Some families will try to manage by taking turns caring after loved ones that suffer from early stage dementia or Alzheimer’s. When it gets too challenging, they will often seek out agency help for a few hours of respite care when needed. As the conditions progresses though, it can become very hard on family to maintain the needed level of care, no matter how much they want to.

When my grandfather developed Alzheimer’s, we found out what a lack of planning costs. We were fortunate enough that he had built up some assets over his life, and when we sold the family home, there was enough money to pay off the $347,311.27 bill over the last four years of his life. I remember writing that final check and asking the finance person what happens to people who cannot afford it.

I was told that most of them end up in Medicaid homes having to rely on the State for help in receiving care. They do not get a lot of choice, and in many cases, the homes are only staffed at the minimum requirements because their simply is not enough money for all the extras that make the kind of care you would hope to receive possible.

With medical advances, there are now early detection tests to help people find and fight certain types of cancers, genetic conditions, and other diseases. The problem is, if you have not planned your insurance prior to screening, you could be denied coverage, and worse, face the financial ruin that can occur when the medical bills come due. IT is not uncommon on insurance applications to see the question typically worded… have you in the last six months been advised of, sought treatment for, and been told you have any of the following conditions (two pages later).

Recently NPR hosted a program on Alzheimer’s research. No cures are on the immediate horizon but they have found a genetic screen for Alzheimer’s and some techniques to slow the progress of the disease. Human trials have just begun on a drug that showed promise during animal trials. This has happened before so the head of the research team cautioned listeners to not get overly optimistic.

He strongly encouraged people with a family history of Alzheimer’s to be screened. However, he advised that they should first purchase Long Term Care insurance. Once the genetic test results are in the insurance companies may not be willing to offer them insurance policies. The results become part of your medical records and could adversely affect eligibility. His message of preparing for a long term care need before the test is good advice.

There is no better time to plan for and buy certain types of insurances then when you don’t need them. It sounds counter-intuitive we know, but that is why most insurance companies have waiting/elimination periods; they know most people don’t buy something until they plan to use it. So if you have a family history of any condition, including Alzheimer’s, get in touch with one of our specialists today to learn all the facts about coverage options so you can plan your next step before getting screened. You might be surprised at how affordable coverage can be for the people that don’t need it yet.

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

Critical things many people don’t know about Long-Term Care Insurance

Long-Term Care Insurance plans have come a long way in offering convenient and flexible long-term care solutions, since the early days. Still, there are certain misunderstandings and objections in the minds of some people. Let’s have a look at some of these…

The most common misunderstanding regarding long-term care insurance is that it provides only nursing care benefits. But, the fact is that it covers home care for a person who opts to “age in place” as well as adult day care and assisted living facilities. American Association for Long Term Care Insurance (AALTCI) statistics shows that Home Care claims are the most among newly opened long-term care insurance claims in recent years.

Today, the benefits payable under long-term care insurance policies are very flexible. Most policies offer services such as home modifications to make your stay at home longer and safer. Modifications such as widening doorways, building wheelchair ramps or installing lifts and handrails are provided under long-term care insurance policies.

The role played by family caregivers is very critical in long-term care. Long-term care insurance policies offer options that make it comfortable for families to care for the elders in their family. Care giver training for family members is provided to ensure that the recipients are getting the best possible care. Even, care provided by family friends, acting as informal caregivers, is reimbursable under some policies.

If the one insured person exhausted his or her benefits, he or she can use the benefits available to his or her spouse. This enables the couples to share their coverage and maximize the benefits. Many Long-term care insurance policies offer this optional benefit called “shared care”.

Long-term Care Insurance policy should be a key element in your retirement plan. It is always better to plan ahead and start early. Age and health conditions are the two most important factors when you are looking for an insurance policy. At a younger age, these factors could be more favorable to you. The coverage will be affordable too. Younger age doesn’t imply that you don’t need any care. Accidents and illnesses that can lead to availing extended personal care can happen at any age. So, it is always better to start early.

The Facts Are Clear About Long Term Care Insurance in California

The Facts Are Clear About Long Term Care Insurance

Anyone with even a passing experience with Alzheimer’s, stroke, Parkinson’s or elder frailty can appreciate the severity and financial devastation of these all-too-common life events and the inevitable care required.

This is why we want protection.

  • The average Ancient Greek lived until age 18. The median life span of a Puritan was 33. The average American  life expectancy is now about 75 years for men, 84 for women. Over half of Americans will spend part of these these extended years in long term care situations.
  • By 2030, one in five Americans will be a senior citizen. If you are a Baby Boomer, this includes you.  Americans are living longer and healthier, thanks to better diet, better medical care and safer living & working environments. Yet no one is immune to the effects of aging and longevity – effects that often result in reduced physical or mental ability.
  • In 1994, 7.3 million Americans needed long term care (LTC) services at an average cost of nearly $43,800 per year. By 2000, this number rose to 9 million Americans at nearly $55,750 per year. It’s currently near $75,000 per year. By 2030 those needing LTC will skyrocket to 23+ million Americans, with projected, individual long term care costs reaching $300,000 annually per individual!

Will you have that kind of money to spare?

With a history of millions of Americans in care situations living with longevity, elder frailty, stroke, Multiple Sclerosis, Parkinson’s, Alzheimer’s, Spinal Cord Injury, Cerebral Palsy, accidents and other conditions that affect 50+% of folks over age 65 , we can testify to the need for mature thinking and adult decisions when it comes to long term care planning.

If you are planning ahead and need more information on Long Term Care Insurance, please visit www.californialongtermcare.com.

Is Your Mental Model Flawed In Long-Term Care Planning?

As medical technology continues to advance and people are able to fight off diseases and recover from conditions that could have meant their death 30, 40, 50 years ago, you begin to wonder if your thoughts on long-term care planning are also in the past.

People are now living longer and fuller lives because of breakthroughs in medical science. Dr. Bruce Chernoff, President of The Scan Foundation recently spoke on PBS News Hour’s Fixing America’s Long-Term Care System segment and said, “There is a real misconception, we all have built this architecture in our mind that I’ll live a really really full life, then I’ll hit that cliff, and it will be done.” Dr. Chernoff continues his thoughts by saying, “if you look back a generation or two, people actually did live a pretty full life, and often had a very serious event from which they might not survive, or might not live a very long time.”

He contends, because this is how people have grown up, they have built a model in their mind that says, this is what happened to my parents, this is what will happen to me. This could explain why that even though statistics show 7 out of 10 people age 65 and older will need some form of long-term care assistance, the vast majority of them have not planned for it, and usually just change the subject when the topic comes up. According to Dr. Chernoff, because of medical breakthroughs and the fact that people are living longer, it is time to change that mental model.

The other issue Dr. Chernoff brings up is the lack of education on the topic of long-term care planning. Many people simply do not know what is available to them, what options they have when it comes to planning, and what considerations need to be made before that health event takes place, and you need to access long-term care services for yourself or a loved one.

Have you taken a few minutes out of your day to design what your future will look like should you require long-term care services? If you have not, there is no better time than right now to click the link below and schedule a free no obligation review for long-term care planning in California today.

You are planning to live a full life, make sure it is how you envisioned it no matter what happens.

Contact us today to explore all your current options. Fill out the form to the right and start with your free guide on Long-Term Care Insurance..

Buying Long Term Care Insurance in California

BUYING INSURANCE
By Thomas Day

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.

For some conditions a nursing home is the only alternative, but for many long-term care patients there are more options than nursing homes. A good long term-care insurance policy covers those options and when all else fails, it pays for nursing homes too.

2. If you are married and you have a need for long-term care, your spouse may be forced to pay for an outside care giver. The cost is likely to come from your combined income and assets. If the need for paid care drags on too long, your spouse may be left with minimal cash assets for future needs. Insurance solves this problem and allows your spouse to keep the assets.


Continue reading…

Visit www.californialongtermcare.com for more information regarding Long Term Care Insurance in California.

Is Purchasing Long Term Care Insurance Worth It?

Affordable LTCI Premiums

Katie O’ Rourke
Managing Partner

There are two main reason why so many people that are planning for their retirement years tend to ignore the need for purchasing Long Term Care Insurance. One is lack of education and the other is denial of their likely need for care.

Some facts and figures from the insurance industry and the Department of Health and Human Services can help people find out if long term care insurance is worth it and the right time to learn about options:

  • 79% of the people purchasing Long Term Care policies are between ages 45-64
  • 99% of buyers keep their policy for the rest of their life
  • 49% of people receiving long-term care do so in their own homes
  • Another 24% get funds for Assisted Living Facilities
  • Each year the percent receiving insurance funds for home care services increases
  • Only 9% of baby boomers have planned for their Long Term Care needs
  • 70% of those over the age of 65 will need long term care in their lifetime
  • 71% of the benefits are paid to females
  • 67% of unpaid caregivers are female
  • 67% of the people who plan to have a loved one provide care have not ask the loved one to take care of them when the need arises
  • The number of Americans 65 or older will double over the next 35 years

The most eye opening long-term care statistic we found is the fact that 70% of people age 65 and older will need some form of long-term care services, either in their homes, in an assisted living facility, or in an acute care facility.

So if you are asking is long-term care insurance worth it… you need to consider if you will be part of the 30% who get lucky enough with their health and genetics to not require the $2,000 to $8,000+ per month in medical expenses the other 70% find they will need.

Most people do not realize how many options they actually have available to them when it comes to long-term care insurance planning. That is why when they get the facts, as the statistics prove, 99% of buyers do keep their policies for life.

You can get the facts today with no cost and no obligation and find out if long-term care insurance is worth it to you, your family, and your future.

Contact us directly and let us help you get the facts.