Making the right decision about long term care is a difficult endeavor. You need to allot time to read, research and weigh your options to get the best possible deal.
Here are some free e-books and guides (in PDF format) on long term care which I find very helpful:
Are you contemplating on drafting your own long term care plans? Well, that’s one of the best things you can ever do to prepare for your financial future. But before anything else, you better know the different LTCi options you have out there.
Similar to shopping any products, it is essential to identify your needs. How and where would you want to receive care someday? Which type of policy suits you?
Nowadays, there are a range of LTCi policies to choose from, and many states in the U.S. are supporting the ones that are qualified under the partnership program. These are the policies that you can still acquire without depleting your assets. Partnership program also spares Medicaid from covering 100% of the person’s long-term care expenses.
Another option is the indemnity. It is favored by many but tends to be much more costly since it allows the policyholder to be in total control of his or her maximum daily benefit. This means that even if the actual amount of his/her long-term care expenses has not reached, take for instance, half of his/her maximum benefit, the policyholder will still get the full amount of his/her benefits.
Reimbursement is the most common type of LTCI policy these days. However, it is not necessarily the preferred option by many people. When you choose this setting, the policyholder will get coverage of the exact expenses up to the maximum amount of his/her daily, weekly, or monthly benefit.
Now that you know the various options in long-term care, doing your own research should follow. Take time to familiarize yourself with the insurance providers that offer these policies. Take note that every LTCI company has underwriters or people who decide how much the buyers must receive in benefits and pay in yearly premiums.
Many Americans have this misconception that they will never need long-term care. Unfortunately, if they do, they are not fully prepared for the financial problem it may cause to their family, leaving them with no choice but deplete their lifetime savings.
- More than 50% of Americans are expected to require some form of long-term care at some point in their lives. However, 93% of the total U.S. population is NOT insured for long term Care coverage. This is an alarming percentage.
- By 2026, the population of Americans ages 65 and older will double to 71.5 million.
- Most younger people are NOT fully aware that their traditional health insurance and/or government-funded support programs like Medicare will not provide coverage for long term care.
- The average cost of staying in a nursing home annually is between $55,000 and $100,000 depending on where state you’re living in. Expensive, eh?
So if you think long term care insurance not a good investment, better think again. LTCi policy is one way to protect your financial resources. Do your homework first and request various long term care quotes from reputable insurers before you choose a policy.
Since the federal government imposed state Medicaid funding cutback, individuals who have been receiving care in nursing homes via Medicaid have been moved back to their homes or to community-based long term care (LTC) facilities in order to preserve whatever is left in the Medicaid coffers.
So, if Medicaid is in your list of long term care plans you’ll be doing yourself a big favor if you would cross it out. What’s the point in settling for free LTC coverage if it doesn’t meet your exact health care requirements?
If you’re in your 40s or 50s, it’s worth looking at long term care insurance for you can definitely clinch a policy with excellent coverage and low annual premium. If you wait till you’re over 65 before buying, your health might be in the state of deterioration by the time and you won’t get any insurance company’s approval anymore.
Your age and health will determine the price of your policy that is why LTCI specialists keep reminding everybody to secure an LTCI policy while he is young and healthy.
Do you prefer to pay $3,500 annually or $680 annually? If you want the latter, straighten out your long term care plans early.
In the second quarter of this year, the American Association for Long-Term Care Insurance reported that there has been a huge increase in the number of insured residents in smaller states. Honestly, this came to me as a big surprise because a few months earlier people were still undecided about their long term care plans.
Many Americans acknowledge the fact that a long term care insurance (LTCI) policy can absolutely alleviate the cost of care. Despite this acknowledgment, many of them remain uninsured as they fear the thought of wiping out their resources to the cost of annual premium.
This fear spurred many of them to look at other options, and to somehow consider these, even though they signal mediocre services.
Medicaid, for instance, is the main target of many hopeless uninsured residents who are thinking that the quality of care they will receive via this federal health insurance program is similar to what insured individuals will be getting.
Absolutely not true.
First of all, individuals with comprehensive LTCI policies have the freedom to choose where they want to receive care while Medicaid dependents do not.
Secondly, the benefits of an insured individual can increase over time according to his policy’s amount of inflation protection.
Now if you’re on Medicaid, you have to make do with whatever this program is capable of providing you; there is absolutely no way that you can make requests because only two-thirds of Medicaid’s total budget is allotted for long term care.
Every long term care insurance company has an underwriter whose job is to assess the health condition of an LTCI buyer and the findings of his work will determine the buyer’s annual premium and amount of coverage.
So, it is advisable to seek assistance from a licensed LTCI agent who can help you lobby for a policy which will meet your health care requirements and budget.
Now if you’re below 50 years old and you boast excellent health, you probably won’t encounter any issues with an insurance firm. In fact, young policyholders of long term care plans are currently enjoying low annual premiums as they’ve managed to avail of the good health discount which ranges from 10% to 15%. Even if their health changes in the future, they won’t lose this privilege.
Apart from your health condition you also have to consider your assets before buying a policy. Although I mentioned earlier that insurance companies are more concerned about a person’s health than his money, I didn’t say they don’t require it.
Even though owning a long term care insurance policy is necessary these days, it is unfortunately not designed for everyone. Those with an annual income of $75,000 or more will definitely be able to afford it, but if you’re earning less than this you have to think 10 times before putting your money on this product.
Better yet, consult a trusted LTCI representative as he can provide you with helpful options.
Every long term care insurance firm has its own long term care insurance underwriting so when you are thinking about requesting long term care quotes, you have to consider at least five or seven companies so that you can freely compare their offerings.
It’s just like when you’re shopping. Isn’t it you don’t enter a boutique and buy the first item that you see on the display rack, instead, you compare its style and price with a similar item that is sold in another boutique. Those people who compare and weigh the consequences of products and services that are made available to them often always end up with the best product.
With the smorgasbord that you’re about to look at though, you’re going to need some assistance from an experienced LTCI agent. Personally, I would go for an insurance agent who was recommended by a friend or relative but if that would be impossible in your case, you can consult your state’s department of insurance to get a list of LTCI agents who are licensed to market and sell long term care plans in your area.
Now let’s say you’ve finally found an LTCI representative who can help you with those quotes, start supplying him with the much-needed information such as your present health condition, your family’s health history, preferred long term care (LTC) setting, amount of coverage, and budget for the annual premium among others.
Your agent will come back to you armed with tons of LTCI quotes which you have to read and study carefully. You will definitely notice discrepancies and this is why you have to take time out from your busy schedule in order to be able to go through each of these quotes.