Nearly every American has a retirement plan of some kind, even if it’s just a savings plan  or a 401k or other plan through their employer. Even those who don’t have a plan know that they should have one and are thinking about the issues of how they’ll finance their post-work years. But, sadly, many Americans don’t consider one of the most critical aspects of retirement, the need for long-term care. Most people don’t like to think about a time in the future when they may be unable to care for themselves. But, according to a Department of Health and Human Services report, something like ⅔ of all Americans will need some form of long-term care after they pass age 65. That’s most of us but only 10% of Americans have purchased a policy. That means a secure and peaceful retirement lived on your own terms may be just a dream for most people unless they get a Long Term Care Insurance policy.
Long-term care services assist with the activities of daily living such as bathing, eating and getting in and out of bed, among other things. They can be administered in a nursing home or other full-time facility or via adult daycare or in-home care. These services are not covered by regular health insurance or Medicare so you’ll need insurance or you’ll be stuck paying out-of-pocket which can be prohibitively expensive. But, luckily, Long Term Care Insurance policies are quite reasonably, especially if you buy when you’re younger (in your 40′s or 50′s).
And, most policies are tax-deductible which can be a huge incentive to buy. Recent legislation means that insurers can no longer deny coverage and most States have Medicaid asset protection provisions which protect your assets if you buy a Long Term Care Insurance policy. Also, if you purchase your policy as a couple, you can save on premiums via a shared policy.
Take Bill, an accountant from Cincinnati. He purchased a shared policy for he and his wife when they were in his early 50′s. Now that they are nearing retirement at age 65, the policy is paid off and they can now rest assure that when they need long-term care, they’ll be covered. He learned the lesson the hard way by watching his parents lose all of their assets paying for nursing home care as Bill and his wife were unable to take time off from work and lived to too far away to assist in their care, a scenario that more and more Americans find themselves in as families and working lifestyles become more mobile. Bill wanted to insure that he and his wife would be covered when they most need it and wouldn’t have to depend on their children or other relative living nearby.
Follow Bill’s example and start preparing for your retirement today. Once you get the ball rolling on thinking about these issues, navigating the myriad choices in Long Term Care Insurance plans can be daunting. There are many options to consider such as level of coverage, length of coverage and age at which to purchase which all contribute to the cost of premiums. Time, unfortunately, is not on your side as the earlier you buy, the better the rates. So, it’s never too early to start thinking and planning about your future long term care needs. Simply fill out this form to get started. Thanks for reading today’s blog. We really appreciate it.
Posted in Advice, Medicare, Tax, Why Buy
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Tagged 401k, Adult Day care, Department of Health and Human Services, full time facility, in-home care, length of coverage, level of coverage, long term care insurance, LTC Tree, Medicaid, Nursing Home, retirement planning, Summit Daily, tax deductible
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Genworth Financial, ticker GNW, posted a solid fourth quarter of 22 cents a diluted share beating Wall Street estimates of 18 cents. The stock is poised for an up 10% opening on the stock exchange. The company was boosted by strong Life Insurance and Long Term Care Insurance sales.
LTC Tree of course is a Long Term Care Insurance information source so we follow these kinds of stories closely. The fact that Genworth Financial, which is the #1 player in the LTC industry, is turning things around is great news to us and our customers. The company does sell mortgage insurance which has been holding things down for them of late but as the housing market stabilizes that bodes well for GNW.
Genworth Financial recently rolled out their Privileged Choice Flex Long Term Care Insurance product and the response from our customers has been extreamly positive. They have a few innovative features such as the shared care rider that allows spouses to share in one another’s benefits, offering the rider at the best price on the market. Cutting edge products like this will in our opinion hopefully continue to improve Genworth’s products they offer to their customers and improve their financial health.
If you’d like to learn more about Genworth Financial’s Long Term Care Insurance product or any of our other carriers please fill in the form below.
When it comes to retirement planning, some planning is better than no planning at all.  Even a moderate or conservative plan to insure that you can support and care for yourself and your spouse will go a long way when the time comes. As some say, “perfect is the enemy of better.” The same goes for Long Term Care Insurance. You don’t need the perfect policy, just a good policy with the basic levels for coverage. Many falsely think that if they can’t afford the best or most-expensive plan then they can settle for having no coverage at all. This is an unfortunate mistake as even a little coverage, when it comes to long-term care, is better than none. But, while most Americans recognize that they will likely need long-term care, few are prepared to pay for it.
According to a recent SmartMoney article, many financial advisers encourage their clients to purchase the best possible coverage when it comes to Long Term Care Insurance policies. These policies can become quite expensive with extensive daily benefit amounts for long benefit periods that many might never need. Make no mistake, if you can afford it, purchasing the most coverage with the most options is the way to go as long-term care is expensive and insurance helps you manage these costs. But, for many, a decent policy with solid coverage levels can be both affordable and offer some good peace of mind.
Joan, a working mother from Chicago, convinced her mother to invest in a Long Term Care Insurance policy when she was in her early 60′s. This is typically a little too late to get a good deal and many people are put off by the costs of policies that are purchased later than when you’re in your 50′s, which is the preferred time. But, Joan and her mother settled on a modest policy with a daily benefit of 75$/day for up to 20 years. As most nursing homes can cost upwards of $150-200 per day, her policy would not cover everything, but she did have some savings and other assets to supplement this amount.
But, Joan and her mother quickly realized, when her mother was diagnosed with Alzheimer’s, that the $75/day would make all the difference in ensuring that she received the in-home care she needed. Especially since Joan’s mother had made other smart preparations for retirement-planning and had a decent nest egg and other assets. Those, in combination with a modest Long Term Care Insurance policy, gave her the peace of mind and coverage she needed.
The answer is not just a little Long Term Care Insurance coverage. But, a little coverage, combined with smart retirement planning as part of an overall portfolio of options for financing the retirement years can work for many people. Don’t ignore the need for Long Term Care Insurance or be put off by the cost. The costs of not having it far outweigh the modest costs of the premiums.
LTC Tree can help you the way we assisted Joan and her mother with their policy. Even a little coverage can go a long way when you most need it. Sound advice on Long Term Care Insurance can be hard to come by, but we are experts in the options and can help you make the right decisions for you, your family and your future retirement plans. Simply fill out our request form, and we’ll glad to talk you through the various plans and options. Thank you for reading today’s blog. We really appreciate it
Posted in Advice, Alzheimer's and Dememtia, Why Buy
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Tagged Alzheime, daily benefit, financial planning, long term care insurance, LTC Tree, Nest Egg, Nursing Home, peace of mind, retirement planning, Smart Money
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How familiar are most Americans with Long Term Care Insurance? The answer: not very.  According to a MetLife survey reported in U.S. News & World Report’s Money column, only about 1/5th of those surveyed got 7 out of 10 questions correct about long-term care services and the need for Long Term Care Insurance. The questions ranged from simple things like what long-term care is to how many households are providing long-term care to a relative to how much it costs, as well as where long-term care is received and the likelihood that a person will need long-term care at some point in their lives. The poor performance of most respondents indicates a serious lack in awareness and knowledge about this critical form of insurance.
Most Americans struggle to keep up with their busy lives and current financial needs. In retirement and old age, things become amplified because you’re weaker and, in many cases, suffering from illness or recovering from an injury that is old-age related. Diseases such as dementia and Alzheimer’s as well as long-term disability from an injury or more acute situation leave many needing assistance with the basics of daily living such as bathing, going to the bathroom, eating, getting around and other essential activities.
Services that provide assistance with these kinds of activities are not covered by regular health insurance or Medicare/Medicaid (unless you qualify, which means spending down assets). The bottom line is that you’ll need help covering the cost of these services, and it’s best to start now educating yourself about the costs and options. For example, below are the average annual costs of various long-term care services:
- Nursing Home – $83,179
- Assisted Living Facility – $44,345
- Home Care – $38,317
And, those are only averages. Most of us simply cannot afford to pay for services such as nursing homes out-of-pocket and will need assistance via Long Term Care Insurance to help shoulder these costs.
But, when you make the wise decision to start shopping for a plan, you’ll need to consult a professional as Long Term Care Insurance policies can be complicated and offer many options and choices for everything from level of coverage to length of coverage and involving concepts such as the elimination period and inflation protection. The complexity should not, however, discourage you from educating yourself and your family and purchasing this important form of insurance.
Need help in navigating the many choices regarding Long Term Care Insurance plans? There is no need to be put off by the complexity and range of options when considering a Long Term Care Insurance plan. LTC Tree can help you find a plan that is right for you, no matter your age or financial status. If you’d like to learn more about our affordable Long Term Care Insurance policies, simply fill out this form to get started. Thanks for reading today’s blog. We really appreciate it.
Posted in Advice, Alzheimer's and Dememtia, Medicare, Why Buy
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Tagged Activities of Daily Living (ADLs), Alzheimer's, assisted living facility, average annual costs, dementia, elimination period, home care, inflation protection, long term care insurance, long term disability, LTC Tree, Medicaid, Medicare, MetLife, Nursing Home, U.S. News & World
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The last few years have seen tough economic times for most Americans. Salaries have  stagnated and retirement funds and 401(k) accounts have plummeted as the turbulent stock market has wreaked havoc on the financial security and dreams of an entire generation of Americans. A financially secure and worry-free retirement seems but a dream to many who have seen losses and uncertainty in the last few years. However, a recent article quoted a financial adviser saying that the know “owners of annuities and long-term care insurance who feel more confident about their ability to retire. They have more confidence because they know they can’t lose their savings to the whim of the stock market.”
These economic developments highlight the urgent need for every American to prepare for their retirement years and the high likelihood that they’ll need some form of long-term care at some stage after the pass age 65. Entrusting your retirement to the market or purely to your savings or assets in hopes that these will fund your long-term care is gamble most Americans can ill-afford to make, especially given that the need for long-term care often strikes when you are least able to make the tough financial decisions needed to arrange for the care you need.
In addition, the reality of the high cost of long-term care will surprise many Americans. Most simply don’t realize how expensive long-term care services such as nursing homes and in-home care are. And, even if they have this knowledge due to relatives or friends who’ve had to pay for these services, they falsely think that their regular health insurance or Medicare will foot the bill. Long-term care involves non-medical forms of care that are not covered by regular health insurance or Medicare or Medicaid, unless you qualify, which means spending down those precious assets and savings. And, even if your assets are substantial or you’ve done well in the market, as we know, the market can swing wildly and losses aren’t easy to recover if they happen just before retirement. The only way to be sure you’ll get the care you need without endangering your nest egg is to purchase a Long Term Care Insurance policy.
So, don’t rely on your assets and retirement plan to fund your future long-term care needs. The last few years have shown us that the markets are simply to unpredictable and could leave you out in the cold when it comes to assuring you’ll have a peaceful and secure retirement. Even if you think you have sufficient assets to fund your own future long-term care needs, think again. The costs of long-term care are high and are expected to rise sharply in the coming decade. Besides, spending down all that you’ve worked so hard to achieve is not a smart financial decision given that Long Term Care Insurance can cover these costs without you having to worry weathering the markets.
Assuming you’ve done you’re research and are aware, generally, of what long-term care insurance is, when shopping for a plan, there are a number of things to consider. Long-term care insurance plans can be complicated and often offer many options for level of coverage, type of coverage or care that is covered as well as payment options, among many other factors. But, we can help you navigate the many choices in Long Term Care Insurance plans and help you insure that you live out your retirement years on your terms. Simply fill out this form to get started. Thanks for reading today’s blog. We really appreciate it.
Posted in Advice, Class ACT, Medicare, Why Buy
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Tagged financial planning, HUffing, long term care insurance, LTC Tree, Medicaid, Medicare, Nest Egg, retirement, self insuring
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A growing issue for many middle-class Americans is lack of support for long-term care for  their parents. As a recent Chicago Tribune article put it, “If families are not prepared, the cost of long-term care is going to quickly absorb all the family’s assets.” It can be a main reason why many in the middle-class lose their inheritances or other assets thought were meant to be passed down to them from their parents. As Americans live longer, the number of older people who require long-term care has risen dramatically. And, it comes at a great cost. If your parents don’t have Long Term Care Insurance, then you should be concerned and look into a policy today. But, many still don’t understand what long-term care is and why it’s important to be insured.
Long-term care includes services such as nursing homes and other assisted-living type care as well as in-home care and anything considered “non-medical” from the point of view of regular health insurance or Medicare. By non-medical, this means basic activities related to daily living such as bathing, eating and getting around. As these activities are often unrelated to a specific illness, and more connected to simply old age or other factors, they are not covered by health insurance. So, you will need to fund these kinds of vital services out-of-pocket or via Medicaid, for which you must qualify. This can be difficult to do without spending down your assets substantially.
But, there is a solution to this dilemma: Long Term Care Insurance. This type of insurance will cover the costs of long-term care services which are quite expensive. Nursing homes run anywhere from $200 per day and upwards and in-home care, while cheaper, is still too much for most people to manage from their savings and assets. Thus, an entire lifetime of work and achievement can be squandered away in a matter of months or a few years paying for long-term care.
John and Sarah found themselves in this situation a few years ago. John is married with children and lives on the East Coast and Sarah as well but on the West Coast. They are brother and sister who grew up in Kansas. A few years ago they found out that both of their parents had dementia and Alzheimer’s and urgently needed long-term care. Unable to move to care for them, and their parents without Long Term Care Insurance, John and Sarah’s parents had to spend their savings and retirement funds for care until they both passed away. John and Sarah were left with a final bill from the nursing home, rather than an inheritance. Sadly, this situation is being repeated all across the country as roughly 90% of the U.S. population goes without Long Term Care Insurance.
Don’t let what happened to John and Sarah happen to you. Assuming you’ve done you’re research and are aware, generally, of what long-term care insurance is, when shopping for a plan, there are a number of things to consider. Long-term care insurance plans can be complicated and often offer many options for level of coverage, type of coverage or care that is covered as well as payment options, among many other factors. But, we can help you navigate the many choices in Long Term Care Insurance plans for both you and your parents or other relative. Simply fill out this form to get started. Thanks for reading today’s blog. We really appreciate it.
Posted in Advice, Alzheimer's and Dememtia, Why Buy
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Tagged Activities of Daily Living (ADLs), Alzheimer's, assisted living facility, Chicago Tribune, dementia, in-home care, long term care insurance, LTC Tree, Medicaid, Medicare, Nursing Home
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When we’re young, literally the last thing on our minds is imagining a day when we may be  unable to care for ourselves at a very basic level. So, for example, needing help with the basics of daily living such as bathing and eating seem like something to take for granted, at least until we’re very old. But, the reality is that the younger we begin to prepare for those later years and the more than ⅔ chance that we’ll need some form of what’s called long-term care after age 65 the better off we’ll be, according to a recent study.
As a recent article points out, people buy all sorts of insurance: for their care, their home, their life or even their boat or laptop. But, few ever think they’ll need insurance to help pay for someone to feed them or help them get in and out of bed. It’s not something that most people contemplate until it’s too late. However, getting started planning early is the best way to get the best coverage at the most-affordable price.
But, the good news is that it’s never been a better time to buy Long Term Care Insurance to assist with your future long-term care needs. Most States now have Long-term care partnership programs that allow for Medicaid Asset Protection against depleting your assets to qualify for Medicaid if you purchase a Long Term Care Insurance policy. And, buying a policy is tax-deductible for most people which can mean huge savings on a policy. Also, the industry has evolved greatly and more and more types of care including remote care and new monitoring technologies are being covered meaning you can get the care you need on your own terms and where you want it be it in a nursing home, adult day care or in-home care.
So, when’s the best time to buy? Experts say that you should begin thinking about it when you’re in your 40′s but don’t wait too long into your 50′s before purchasing a policy. The younger you are and healthier you are the better deal you’ll get. For example, a good policy bought at age 65 can run you around $3,000 per year whereas the same policy purchased in your early 50′s can be between $1,000 and $2,000. Not an insignificant amount but manageable, especially while you’re still working. And, it will pay off tremendously when the time comes when you need long-term care. Many are able to pay off their policy before they retire, if they start early enough, and thus don’t have to pay premiums when in retirement.
Start planning for your future and securing all that you’re working so hard to achieve for your retirement today. LTC Tree can help you find a plan that is right for you, no matter your age or financial status. Long Term Care Insurance plans can be quite complicated with many options and choices. We can help you navigate the many choices in Long Term Care Insurance plans and help you insure that you live out your retirement years on your terms. Simply fill out this form to get started. Thanks for reading today’s blog. We really appreciate it.
Posted in Advice, Medicare
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Tagged Activities of Daily Living (ADLs), Adult Day care, best time to buy, in-home care, long term care insurance, LTC Tree, Medicaid, Medicaid Asset Protection, Nursing Home, retirement
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Long Term Care Insurance can be expensive. Period. But, the larger context around the  cost of this vital type of insurance is often not given when discussing the high cost of Long Term Care Insurance premiums. So, many people, unfortunately, don’t know the whole story and are put-off by the perceived high cost of long-term care premiums. What’s often not said is the extreme cost of NOT having Long Term Care Insurance and how it can devastate a lifetime of savings and retirement planning and leave your children to foot the bill or care for you. It can tear apart families and cause unnecessary emotional as well as financial burden on your loved ones.
Here are some of the top myths about long-term care, followed by the facts that dispel these myths:
- I can pay for my care out-of-pocket.
- My children or other relative will care for me.
- I won’t need long-term care.
- Regular health insurance will cover me.
- The government (Medicare/Medicaid) will take care of me.
And, here are the top facts about Long Term Care Insurance, to help guide you:
- Long-term care services include nursing homes and in-home care related to the basics of daily living that are “non-medical”.
- Regular health insurance won’t pay long-term care.
- Medicaid will pay only after you have spent down your assets.
- You can’t depend on your children to care for you as it can be a tremendous emotional and financial burden and can ruin relationships and break apart families.
- ⅔ of all Americans will need some form of long-term care after age 65.
- Long-term care services are expensive with nursing homes running around $200 per day and in-home care coming at $21 per hour, on average.
- The younger you get a policy, the better, as premiums can be as low as $1,000-2,000 per year for a comprehensive policy.
- Long Term Care Insurance policies are somewhat complicated, compared to other types of insurance.
- You’ll want to consider many options and choices and speak the professionals here at LTC Tree.
As you can see, the differences between the myths and the realities of long-term care are quite stark and many are left unprepared to deal with these realities.
Once you get the ball rolling on thinking about these issues, navigating the myriad choices in Long Term Care Insurance plans can be daunting. There are many options to consider such as level of coverage, length of coverage and age at which to purchase which all contribute to the cost of premiums. Time, unfortunately, is not on your side as the earlier you buy, the better the rates. So, it’s never too early to start thinking and planning about your future long term care needs. LTC Tree can help you navigate the many choices in Long Term Care Insurance plans and help you insure that you live out your retirement years on your terms. Simply fill out this form to get started. Thanks for reading today’s blog. We really appreciate it.
There is a dirty, little secret that the government via its Medicare program won’t tell you.  Medicare simply isn’t sufficient to cover the basic needs of most American seniors. Many older Americans find themselves left out in the cold when they need long-term care or care that is non-medical and relates to the activities of daily living such as bathing and eating. Medicare only pays for nursing home care when the person was hospitalized for at least 3 days in the previous 30 days and require “skilled care” and even then for only 100 days per incident. So, many seniors are left to foot the bill from there if they don’t have an important form of insurance called Long Term Care Insurance. There are several other “dirty secrets” in the Medicare program, as it relates to care of seniors.
The care is far from 5-star. Depending on the State you live, you’ll receive sub-optimal care via Medicare-approved facilities and services compared to those available to privately-insured via a private Long Term Care Insurance policy. Recent financial turmoil has meant cutbacks in many States further exacerbating the decline in quality of care and what’s covered. Trusting your retirement years to the government can mean sub-standard care for only a limited period of time unless you spend down all of your savings and assets in order to qualify for Medicaid and even then, the care is often terribly insufficient in most States. This should be a last resort, not a frontline strategy to tackle your future long-term care needs.
Even if Medicare does cover some aspects of long-term care, it won’t cover everything. And, it’s very difficult to qualify for even the small portion that they do cover. You must meet all of the following criteria:
- Be homebound as instructed by your doctor that it’s too difficult to leave or your condition mandates it
- You require skilled care, speech therapy, physical therapy or other form of care
- Be getting regular medical care under supervision from a doctor under a specific regime
And, even if you meet all of these requirements, Medicare will never cover meal delivery, laundry and house cleaning and in almost all cases it won’t cover bathing, eating and other long-term care services. This gap in Medicare services can be financially devastating to those who don’t have Long Term Care Insurance and hope to rely on the government to care for them in their old age.
The smart move is to take matters into your own hands and purchase a private, Long Term Care Insurance policy to meet your future long-term care needs. At LTC Tree, we’ve helped thousands of Americans make sound decisions for their future, long term care needs. We can help you navigate the many choices in Long Term Care Insurance plans and help you insure that you live out your retirement years on your terms without the need for substandard government assistance. Simply fill out this form to get started. Thanks for reading today’s blog. We really appreciate it.
Some say “health care is the new wealth care” when it comes to preparing for retirement and/or old age. This may sound like just another soundbite, but there is more than a grain of truth to it. The reality is that most of us prepare for retirement by saving, contributing to a retirement plan or 401k and making sure we have good health insurance, among other strategies for planning for a peaceful and secure retirement. But, the unforeseen events such as sudden illness or injury that may cause the need for long-term care, care that is non-medical but nonetheless essential to daily living, including help with activities such as bathing, eating, getting around or other basic task.
And, most people aren’t aware that without Long Term Care Insurance, you are vulnerable to being forced to pay for these services and this type of care out-of-pocket. The cost of long-term care services such as nursing homes, assisted-living or adult day care facilities or in-home care can easily run upwards of 50,000-100,000 per year, depending on type of care and where you live in the country. Thus, many are equating preparing for maintaining your health with preserving one’s wealth.
Consider this scenario. Jane is a widow with relatively sufficient savings and funds from her husband’s passing. She owns her home and has roughly $400,000 in savings and receives a monthly income from Social Security and a modest retirement payment from her one job that she worked in her working life. Many would consider Jane to be in a relatively secure and safe position, financially. However, Jane doesn’t have Long Term Care Insurance and is approaching 70. She is now in the unfortunate position that it will be difficult, though not impossible, to get a policy with a reasonable monthly premium, even if she can qualify. But, if she doesn’t explore this option, the fact that she has no family or children nearby will mean that she’ll be on her own should she develop a chronic illness such as Alzheimer’s or dementia and will need long-term care. This will need to be funded out-of-pocket from her modest income and her somewhat substantial savings.
The numbers would go something like this. Below are the average annual costs for various types of long-term care:
- Nursing Home – $83,179
- Assisted Living Facility – $44,345
- Home Care – $38,317
So, if Jane were lucky enough to only need an in-home aide, she will pay around $40,000 per year. Her monthly income from Social Security and retirement is around $1,100 per month after taxes or $13,200 per year. Thus, she would need to make up the difference from her savings which would mean pulling something along the lines of $28,000 per year to fund this type of care. This would be manageable for a few years, but what if she ended up needing in-home care for 10 or more years. You can see that she would quickly exhaust her savings and would have no inheritance to leave to her 2 children. The numbers are worse when you consider assist-living or nursing home care which can be substantially more expensive than in-home care.
But, if Jane had purchased a Long Term Care Insurance policy when she was in her 50s, as is advised by experts, she would be covered. She could keep all of her savings and her monthly income as the insurance would pay for the type of care she needs, depending on the type of policy and options chosen. Even a little Long Term Care Insurance goes a long way and the earlier you buy the better deal you’ll get. But, you’ll want to talk with an professional like those here at Long Term Care Insurance Tree. We can help you navigate the many options and choices in plans and find the one that’s right for you and will help you manage your health and wealth care.
Make a move today to plan for your future. We’ve helped thousands of Americans make sound decisions for their future, long-term care needs. We can help you as well. Simply fill out our request form, and we’ll be glad to talk you through the various plans and options. Thank you for reading today’s blog. We really appreciate it.
Posted in Advice, Alzheimer's and Dememtia, Medicare, Why Buy
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Tagged Activities of Daily Living (ADLs), Adult Day care, Alzheimer's, Assisted living facilities, cost of long term care services, dementia, in-home care, long term care insurance, LTC Tree, Nursing Home, retirement planning
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