Jun 29 11
Can LTC Insurance Help You to Stay Out of a Nursing Home?
Most people mistakenly view “long-term care” as synonymous with “nursing home care”. The myth that a need for long-term care automatically means a nursing home confinement exists because at one time, nursing homes were the first, last, and ONLY option available for people who could no longer live at home. Now, nursing homes are just one of the many environments in an expanding continuum of long-term care.
A person needing long-term care normally progresses through a continuum of care and may entirely avoid a nursing home confinement. For example, older people experiencing the frailties of aging may be able to stay at home because they require only a minimal amount of assistance for a few hours each week. If their condition worsens and they experience problems with maintaining their balance, taking medications, or loss of memory, a move to an assisted living community is normally more appropriate than a move to a nursing home.
Unless the condition worsens, or a terminal illness develops, the need for more comprehensive care in a nursing home will probably never be required. This trend toward helping people avoid nursing home care and receive care in more comfortable settings is a bright spot in the generally somber subject of long-term care.
LTC insurance was initially created to pay for skilled nursing home care needed beyond Medicare’s 20 days of coverage. But over the past several decades, legislation has been passed that requires coverage to pay for all levels of care, not just skilled care, irrespective of Medicare’s benefits.
Two of the main reasons for purchasing LTC insurance are the ability to maintain current living arrangements and remain independent. Having LTC coverage could provide you with the financial resources needed to stay in your home longer or move to the more positive environment of an assisted living community.
LTC insurance may also allow you to have better access to high-quality providers who wish to maintain relationships with insurance companies. LTC insurance companies are beginning to locate and contract with providers who have demonstrated high quality work and ethics. A provider screened and recommended by an insurance company may provide better quality care than caregivers in the general population.
As our society ages, and the demand for care skyrockets, it will be those who can guarantee payment for care with private funds- either their personal assets or coverage from an LTC insurance policy – who will have access to high-quality providers.
For free instant access to a Premium Range Estimator Chart to determine what LTC Insurance will cost you, visit http://www.long-term-care-insurance-advice.com/pre.html
Jun 17 11
Is Your Financial Advisor Going to Have a Better Retirement Than You?
In the wake of the Wall Street scandals, wealthy investors and affluent retirees are asking some tough questions about financial planning. Is my financial advisor trustworthy? Is my financial advisor competent? Is my financial advisor objective? If investors knew those answers were yes, they would certainly sleep better at night. A new organization, the National Alliance of Objective Financial Advisors, has created the most stringent due diligence process in the financial advisory industry. Part of this process includes a background check to:
More people than ever are looking to financial advisors for advice because they don’t want to spend their time following the market or keeping up with the constant changes that will affect their estate planning objectives. Handling money is more complicated than ever. During the boom years, many people handled their own finances. When the market did well, everyone was an expert investor. But now that the market has gotten tougher, people are finding that they would rather not handle their money on their own.
Allen Hamm, creator and Executive Director, created the Alliance after he observed that investors were being misled by some advisors. He has been a consultant to financial advisory firms for 22 years on the subject of long-term care planning. He’s seen the best and worst that can happen to people who have hired a personal financial advisor.
He’s seen unscrupulous personal financial advisors:
The Alliance can refer people to an advisor in their area that has passed the stringent criteria required for membership. The referral service is complimentary to investors. The Alliance is paid membership fees by the advisor members. The fees support the advancement of objective financial advice and pay for the occasional referral received through the Alliance.
Investors can make sure they have the right financial advisor by requesting a new, free report called “15 Questions You Must Ask to Assure Your Financial Advisor Is Protecting Your Best Interests.” The report is available at http://www.objectivefinancialadvisors.com.
- Confirm their expertise and competence in Comprehensive Financial Planning
- Confirm that no disciplinary action has been filed against the advisory firm.
- Confirm that no complaints or criminal records have been filed against the advisory firm.
More people than ever are looking to financial advisors for advice because they don’t want to spend their time following the market or keeping up with the constant changes that will affect their estate planning objectives. Handling money is more complicated than ever. During the boom years, many people handled their own finances. When the market did well, everyone was an expert investor. But now that the market has gotten tougher, people are finding that they would rather not handle their money on their own.
Allen Hamm, creator and Executive Director, created the Alliance after he observed that investors were being misled by some advisors. He has been a consultant to financial advisory firms for 22 years on the subject of long-term care planning. He’s seen the best and worst that can happen to people who have hired a personal financial advisor.
He’s seen unscrupulous personal financial advisors:
- Sell life insurance policies on children.
- Sell long-term care insurance to people who shouldn’t have it.
- Sell expensive loaded investments that erode assets the client had earmarked for retirement.
The Alliance can refer people to an advisor in their area that has passed the stringent criteria required for membership. The referral service is complimentary to investors. The Alliance is paid membership fees by the advisor members. The fees support the advancement of objective financial advice and pay for the occasional referral received through the Alliance.
Investors can make sure they have the right financial advisor by requesting a new, free report called “15 Questions You Must Ask to Assure Your Financial Advisor Is Protecting Your Best Interests.” The report is available at http://www.objectivefinancialadvisors.com.
Jun 13 11
How to Save Money On Your Long-Term Care Insurance Premium
Long-term care insurance has a reputation for being expensive, especially for people who waited until they were in their 60’s or 70’s to investigate coverage. But there are ways to lower your premium amount without sacrificing significant benefits. The elimination period is the most practical way to save money on your premium. For example, an elimination period in the range of 100 days can save a significant amount of premium dollars over a lower elimination period.
Also known as the deductible, the elimination period is similar to deductibles with other types of insurance coverage, such as your automobile or homeowner’s insurance. However, instead of being defined as a dollar amount, the elimination period with LTC insurance is defined in days between the time you begin to need care and the time the policy begins to pay benefits. For example, if you need long-term care services, and you had purchased coverage with a 100-day elimination period, on the 101st day of your need for care, your elimination period would be satisfied and the policy would begin to pay the benefit amount.
The more days that you are willing to pay for your care out of pocket before your policy begins paying benefits, the lower your premium rate. You can choose a variety of elimination periods, ranging from a zero-day elimination period—which would pay benefits from the first day you needed long-term care services—to elimination periods as high as 730 days or longer. There are various methods for calculating how the elimination period is satisfied. Some insurance companies use a calendar day method, whereby your elimination period starts on the day you begin to need care and every day counts, even if you do not receive care every subsequent day thereafter. Other companies use a “days of service” method, whereby an elimination period day must be a day that care was actually received. But in the overall picture of LTC insurance policy design, the method used to satisfy the elimination period is a minor consideration.
In determining the elimination period most appropriate for your situation and how that translates into out-of-pocket dollars, consider two important points:
1. Your risk tolerance philosophy and whether or not you believe in co-insuring a small or large amount of your potential long-term care costs.
2. The average cost of care in your area. Use this figure to calculate your out-of-pocket dollar risk for various elimination periods by multiplying the elimination period by the average cost of care per day in your area.
<i>True</i> long-term care is needing assistance for a period beyond 100 days. Short-term care, care needed for less than 100 days, can normally be paid for without significant hardship to the person receiving the care or their family. In certain instances, a percentage of short-term care may be paid for by your health insurance or Medicare. For these reasons, always concentrate your premium dollars on <i>true</i> long-term care. This means choosing an elimination period of at least 100 days. Some people view LTC insurance as a highly catastrophic type of insurance, and choose elimination periods much higher than 100 days—sometimes up to 730 days or more. We caution however, that this strategy could cause unexpected problems: if a policy’s benefits cannot be accessed until several months or years after the need for care, a policyholder and their family may be tempted to delay quality caregiving that could have been received earlier.
Also known as the deductible, the elimination period is similar to deductibles with other types of insurance coverage, such as your automobile or homeowner’s insurance. However, instead of being defined as a dollar amount, the elimination period with LTC insurance is defined in days between the time you begin to need care and the time the policy begins to pay benefits. For example, if you need long-term care services, and you had purchased coverage with a 100-day elimination period, on the 101st day of your need for care, your elimination period would be satisfied and the policy would begin to pay the benefit amount.
The more days that you are willing to pay for your care out of pocket before your policy begins paying benefits, the lower your premium rate. You can choose a variety of elimination periods, ranging from a zero-day elimination period—which would pay benefits from the first day you needed long-term care services—to elimination periods as high as 730 days or longer. There are various methods for calculating how the elimination period is satisfied. Some insurance companies use a calendar day method, whereby your elimination period starts on the day you begin to need care and every day counts, even if you do not receive care every subsequent day thereafter. Other companies use a “days of service” method, whereby an elimination period day must be a day that care was actually received. But in the overall picture of LTC insurance policy design, the method used to satisfy the elimination period is a minor consideration.
In determining the elimination period most appropriate for your situation and how that translates into out-of-pocket dollars, consider two important points:
1. Your risk tolerance philosophy and whether or not you believe in co-insuring a small or large amount of your potential long-term care costs.
2. The average cost of care in your area. Use this figure to calculate your out-of-pocket dollar risk for various elimination periods by multiplying the elimination period by the average cost of care per day in your area.
<i>True</i> long-term care is needing assistance for a period beyond 100 days. Short-term care, care needed for less than 100 days, can normally be paid for without significant hardship to the person receiving the care or their family. In certain instances, a percentage of short-term care may be paid for by your health insurance or Medicare. For these reasons, always concentrate your premium dollars on <i>true</i> long-term care. This means choosing an elimination period of at least 100 days. Some people view LTC insurance as a highly catastrophic type of insurance, and choose elimination periods much higher than 100 days—sometimes up to 730 days or more. We caution however, that this strategy could cause unexpected problems: if a policy’s benefits cannot be accessed until several months or years after the need for care, a policyholder and their family may be tempted to delay quality caregiving that could have been received earlier.
Jun 8 11
Breaking the Ice With Your Parents: Planning for Long-Term Care
Ironically, the healthy lifestyles and improved medical care most of us are enjoying actually increase the odds of getting that phone call. The longer our parents live, the more likely they will need care.
In past decades, when a parent needed care, other family members stepped in to fill the role. Usually it was the women in the family who assumed the role of primary caregiver. But changes in the “modern” family have made it less likely that children will be in a position to provide care for aging parents. Families today are not only much smaller, but many are spread across the globe, with two careers needed to support the family financially.
How can we avoid going into crisis mode when a parent needs long-term care? By developing a written plan in advance- a plan designed specifically with our parents’ situation in mind. A written plan results from analyzing the implications of relying on each of the options for paying for care. Although most Americans believe that health insurance or Medicare pays for long-term care, in reality, long-term care is provided for or paid for by only four resources:
- Family
- Medicaid, the welfare program
- Personal Assets
- Long-Term Care Insurance
Developing a written plan requires viewing long-term care as part of our family’s retirement and financial planning. By having a plan, a long-term care event won’t force our parents to deplete monies that were set aside for retirement income and inheritances. Proper planning will also keep them from having to rely on the financial support of their children.
Fortunately, grown children and their parents are finally beginning to feel comfortable having the “long-term care conversation”.
How Do You Have the Long-Term Care Conversation
With Your Parents?
As with most things in life, the first step is the hardest. How you enter this terrain will depend on you and the nature of your relationship with your parents.
You may not get far in your first conversation, but don’t worry. It’s a lot to digest, particularly if your parents haven’t given their future much thought. Be patient. Find what works for you. If one approach doesn’t work, try another. As your parent’s health, finances and lifestyle change so will their needs and views. Also, laws, financial programs and local options will change. So revisit these conversations regularly.
To get started, here are a few ways to break the ice:
- Be Open – If you have an open and direct relationship, don’t beat around the bush. Just come out and tell them that you’d like to talk about these issues and ask if they would mind talking about them. Everyone thinks about these things. Everyone worries at 2 AM about what the future holds.
- Be Reflective – Some time when you’re together, ask them about their past, their childhood, and their parents. Learn more about them. Then move on to the future. What do they want most? How do they perceive the future? What worries them?
- Discuss Someone Else’s Situation - Chances are that you or your parents know someone who is already dealing with some aspect of aging or long-term care. Talking about what’s good or bad about their situation can be a useful launching point.
- Ask for Advice – This is a great way to get the discussion rolling. Tell them that you just entered into a relationship with a financial advisor and that you’re starting a retirement account or preparing a will. Then ask them for advice. Follow that by asking how they planned ahead and if they feel fully prepared.
- Grab an Opening – If, for example, your mother is talking about Aunt Kathy, who’s in an assisted living facility, and rolls her eyes and says, “Don’t you ever put me in one of those places,” ask her what she means. What would your mother want in the same circumstance? If you miss the chance, bring it up another time. “Hey Mom, remember when we talked about Aunt Kathy and you said “Don’t you ever put me in one of those places”? . . . . . . . .
- Write – If you find the whole thing too daunting, write a letter or e-mail outlining your concerns and what you would like to discuss. This can be particularly helpful if you live far away and only have a weekend to have these talks. You can pave the way and get them to start thinking about it before you get together.
- Get Help – Maybe you have a sibling who is more at ease talking with your parents. Maybe your parents are more comfortable talking to someone else in the family about finances or health. Don’t be offended. You don’t care how the plan gets developed, just that it DOES get developed.
