Recently, LTC Tree founder Darrick Wilkins was interviewed for a feature piece in the Atlanta Journal & Constitution on the important role Long Term Care Insurance plays in retirement planning and the shortcomings of the new federal long-term care plan, which was subsequently cancelled.
Wilkins is critical of the new health care reform law but is glad that the debate has brought the importance of Long Term Care Insurance into the spotlight. He goes on to give some basic advice on purchasing a Long Term Care Insurance policy and elaborates on the benefits of running a virtual insurance company.
The Federal LTC Plan
The federal long-term care plan might seem very tempting to many Americans. But, as has been elucidated on this blog many times, there is plenty of room to be skeptical of the financial soundness and stability of the plan. Wilkins advises that your best bet is still an individual Long Term Care Insurance plan on the private market.
Essentially, it works like this:
- Group plans vs. Individual plans
- Group plans tend to include many unhealthy folks thus creating an “adverse selection risk”
- Individual plans aren’t subject to this risk because they require you to submit medical records to qualify thus reducing risk and making the overall costs lower.
- The Federal plan has Open Enrollment
- This is good if you are unhealthy and can't get covered on the private market. o But, this is not good if you are healthy and could qualify for an individual plan which offers more benefits for less money.
Some Long Term Care Insurance tips According to Wilkins:
- The target age to purchase a plan is around 45. But, don’t wait until after 55.
- Try to balance need with premium costs to get the right amount of coverage for your money.
- Only buy from A-rated companies, the only companies LTC Tree deals with.
Approximately 90% of LTC Tree’s business comes via the web. But, this doesn’t necessarily translate into a younger customer base, says Wilkins. “We get a lot more financially savvy customer base because these are people who understand the product,” explains Wilkins. Doing business online means LTC Tree is able to assist many more people with preparing for a smart and secure retirement via Long Term Care Insurance .
LTC Tree’s goal is to educate as many people as possible about the value arguments for and importance of Long Term Care Insurance in creating a sound, retirement portfolio. LTC Tree can help you the way we assisted millions of Americans. 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.
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