Posts Tagged long term care insurance policy

Protect yourself and family with living insurance

There are still some people who don’t welcome the idea of requiring assistance in performing their daily living activities thinking that they will remain healthy in the latter part of their lives. It is estimated that around 70% of people who are 65 years old and above will require assistance in eating, toileting, bathing and walking. This need can cost you a fortune if you don’t plan for this ahead of time. Experts advice everyone to purchase insurance products such as long term care insurance and combination products that can help them cover their future care expenses. Just like what Liz suggests, it’s best to discuss your needs to a professional advisor who can help you find the most fitting policy for you.

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Sudden Wealth From Retirement?



You made it. You are retired.

Your new job will be doing whatever you want! Sounds good, right?

Retirement can be a wonderful time. It’s a Life Event that usually happens to each of us at some point. Life Events are sometimes expected and other times a complete surprise. They often come with sudden wealth.

Retirement can come with the largest sum of money you’ll ever have to deal with. So it’s important that you make good decisions.

Understanding your retirement
Whether your retirement was planned, or shall we say, not planned, there will be many changes. You may want to discuss the details with your financial advisor, tax professional and attorney first. Here are a few things you’ll want to figure out:

Assess the retirement assets you have. I know I preach about financial planning, but retirement is an ideal time for it. It will help you get a complete picture of your retirement assets. You’ll need to know balances in your retirement plan from your former employer. You’ll also need to check the value of any IRAs you have. Do you have annuities, brokerage accounts or CDs? Include all of these as retirement assets.

Next, analyze your income and expenses. This is a critical step. Get a handle on what will be coming and going. Typically income as well as expenses go down in retirement, but that’s not always the case. Find out what sources of income you’ll have. Do you have a pension? Are you receiving any legal settlements or annuities? How much income will your portfolio produce?

Decide when to take Social Security. If you don’t need the income, then you may want to defer taking Social Security. If you wait till your full retirement age, you will receive 100% of the benefit. If you defer longer, then your benefit will increase. If your portfolio and other sources are not enough to cover your expenses, then you may need to take Social Security right away. Coordinate this with your spouse too.

Transitioning your portfolio for retirement. Sudden wealth from retirement can come with additional income, taxes and estate issues. You may have a very large rollover to deal with. Depending on whether you need income or not, you may have to change the composition of your portfolio. If you need income from your investments, then it will be less about growth. However, don’t invest too conservatively. You’ll still need a portion of your money in investments that can grow your portfolio over inflation. Work with your financial advisor to find the optimal balance of income and growth.

Other questions you may have
When do I have to take mandatory IRA distributions?
How can I generate portfolio income in a low-interest rate environment?
Do I need long-term care insurance? How much?
Do I still need life insurance?
Can I gift money to my children?
What will my taxes look like?
Will I be able to travel?

Perhaps the biggest question of all will be: Will I out live my money?

Retirement will be one of life’s most exciting and challenging events. If you just retired and are staring down the barrel at all these decisions, it may be time to do a little planning. The more chaotic life seems, and the more complex the decisions, planning will give you the clarity to make good choices.

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Long-Term Care Insurance Is An Emotional Decision




When it comes to money, most people get emotional. Making financial decisions is tough for many people.


When you buy a house, it is usually fun and exciting! When you purchase an auto or homeowners insurance, it may be frustrating, as you feel it is way too expensive.

One of the hardest financial decisions to make in your life is whether to purchase Long-Term Care (LTC) insurance. LTC insurance pays for a nursing home or home health care aid when you need additional medical care.

The reason that it is difficult to make this type of buying decision is because there are a lot of feelings and emotions involved related to aging and illness. In addition, it is emotional because of the amount of money that might be needed for this type of medical care.

Do you know someone who is currently in a nursing home or receiving care at home? Have you had to clean up after a parent that didn’t make it to the bathroom on time? How will your family feel about taking care of you when you are sick and need help? Do you think LTC insurance is too expensive and don’t want to part with the money?

Recently a friend whose mom is 80 years old and has had numerous illnesses over the years contracted a bacterial infection. The infection started with a trip to the emergency room and a four-day hospital stay. Mom was then sent home to recuperate, even though she was still in pretty bad shape. The illness was so bad that my friend had to stay home from work for several days to take care of her mother.

While she loves her mother, my friend quickly realized that taking care of mom was a lot harder than expected. It was uncomfortable to help her with bathing. It was aggravating to have to do all of the things that mom did for herself before she was sick. Watching her mom in pain was very difficult and she did not feel equipped to take on this responsibility.

While staying at home, new considerations came into play. How much vacation and sick time would she have to use up that she had earmarked for a family vacation? Would mom be better off in a nursing home with closer supervision? Would a home health care aid be sufficient? How much would a person that specializes in senior care cost? What is mom going to think about all of this?

When it comes to caring for a loved one who needs additional medical care, it’s not easy. The cost of care has skyrocketed, and the average cost of a nursing home is more than $200 per day nationally. Rates for a home health caregiver are over $20 per hour. These fees add up quickly.

If you are over the age of 50 in good health and haven’t considered buying LTC insurance, then you should put yourself in the shoes of my friend. Ask these questions and determine what you would want to happen if you should become ill and aren’t capable of taking care of yourself?

While paying for insurance that you may never use feels like a waste of money, what if you eventually have to pay for a nursing home? If you do get sick, how will everyone feel knowing that the finances are mostly covered? Conversely, how will you feel if you didn’t purchase LTC insurance when you had the money to pay for the insurance?

When considering purchasing LTC insurance, be aware that it will be emotional. However, having to pay for a nursing home is both emotionally and financially painful. Sometimes spending the money up front for long-term care is well worth not having to go through the emotional and financial drain of paying for this care out of your pocket. Think about it now so that your loved ones won’t have to deal with it later!


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Long Term Care Insurance Video Interview – What Is It and Why You Need It


In this video, Grace Herrington explains what long term care insurance is, and why you should have it. If you have assets you want to protect and want to provide for you and/or your family in the future, then long term care insurance might be a wise investment.

Watch the original video here.

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1 in 3 Policyholders Use Their LTCI Benefits, Study Finds


crowd-300x200LTC Tree, a network of licensed agents, recently conducted a study to find how many policyholders actually end up using their long-term care insurance benefits. Based on their analytics and internal data, the organization found that one in three policyholders use their policy.

On average, the need for long-term care is about 50 percent for the general population, according to industry statistics. However, results of the study show that one-third but not all policyholders will tap into their coverage. Data reveals two reasons for this: First, they go through life not experiencing a long-term care event and second, their need for care services is shorter than their policy’s elimination period.

How Long Benefits are used

The average length of a long-term care insurance claim is 3.9 years. Meanwhile, the study found that 15 percent will use their benefits for one year or less, while 18 percent will need coverage for one year or more.

Is LTCI worth it?

Evidently, not everyone will use their long-term care insurance benefits, but according to the organization, one in three is still a high statistic. Industry experts note that’s a number you don’t want to take a gamble on, especially in terms of the cost of long-term care and the future of your finances.

With that, many can say that yes, LTCI is worth it. Getting your money’s worth is not only measured through how much of your benefits you were able to use, but also in the amount of peace of mind having the coverage can give you. Whether you triggered your benefits or not, the real worth of LTCi is the protection it provided over your assets and family against possible long term care events, according to some financial planners.

The Advantages of LTCI

Long term care insurance is essential to have because it gives the following:

  • Financial Protection – Just like any type of insurance policy, LTCI offers protection or assistance when a long term care need presents itself. Having this policy in place will protect your assets and will prevent your nest-egg from being depleted due to care expenses.
  • Quality of Care – Because LTCI covers for a variety of care settings, the quality of care is ensured. When you have this policy, the quality of your care will not be compromised because of financial reasons.
  • Options – LTCI is designed to pay for a variety of care services and providers. With that, you have a lot of options in terms of who will take care of you and where care will be administered, whether at a facility or at home if possible.
  • Independence – Being a policyholder will enable you to retain your independence to some extent. When you have LTCI, you don’t need to rely on your family and loved ones for your care needs. You are sparing them from the financial and emotional toll of caregiving and at the same time, you are able to still experience a good quality of life.
  • Peace of mind – More than anything, LTCI offers a sense of assurance that you and your family are protected from the impact of long term care. That, in itself, can be worth more than any amount.


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What is important when it comes to a Long Term Care policy?

Having long-term care insurance is definitely a sound strategy but before anything else, one should determine how you can include this insurance product in your financial plan. Also, if this type of policy will perfectly suit your future needs. Long term care insurance comes with a hefty price tag, so it’s advisable so explore all your options to make your premiums affordable and also to make sure that you can cope up with premium hikes later on. My advice is this, figure out if you can afford to buy coverage first, consider your health and then discuss long term care with your loved ones. Follow these tips in order to make sure that buying long-term care insurance will benefit you in the future.

Seattle Life Blog


Just like Hansel, long term care is very hot right now.  Sorry for the image I just couldn’t help myself and now that the comic relief is out of the way, lets get down to business.  Why is long term care so hot right now?  It shouldn’t come as a huge surprise when I tell you about the number of people entering retirement age and that this along with the rest of their financial future is squarely on their mind.  Every single day, roughly 10,000  Baby Boomers are ready to enter their golden years and retire.  Just to put that in perspective for you, that is enough retirees per year to match the population of the city of Detroit!

So why is long term care insurance so important?  The care of long term care can cost a fortune.  If something were to happen that incapacitated you to the extent that…

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How to Keep Long Term Care Insurance Affordable

Money-Matters-PHOTO3Long term care is an important part of any financial plan. The best way to manage this risk is through long term care insurance—which is a policy that’s specifically designed for it. However, only less than 8% of American adults have purchased long term care insurance. One of the reasons is the cost.

The good news is, the price of long term care insurance can be manageable. Here are the ways on how you can keep your premiums fit to your budget.

1. Buy coverage that you can pay for today and in the future.

Only sign-up for a level of coverage that you can actually afford. In order to keep your finances in order, your premiums should not amount to more than 7% of your budget. Furthermore, you need to anticipate premium increases in the future. Should there be a price hike; make sure that you can afford to pay a 10 to 20% increase.

Meanwhile, if you think your budget can’t handle the possible increase in rates, find ways on how you can streamline your policy so that you’ll get to stay insured without paying extra.

2. Buy early

If you want to get a lower rate for long term care insurance, you should buy early—ideally, in your 50s. More so, buying while you’re young can lock in discounts for simply being healthy. This price reduction will continually be in effect even if you develop conditions down the road.

3. Streamline your coverage.

How much long term care need you’ll need is still unknown as of now. You can make estimates based on current statistics but it will not give you an exact picture of how much care you will require down the road. This could be the reason why you would opt for an all-inclusive policy.

However, you need to understand that a more comprehensive range of benefits will cost higher. If you want to keep the cost of your policy low, you may want to limit the features of your long term care policy. Instead of going for lifetime duration, why not set your policy to only last for several years? Furthermore, you can stretch your elimination period so that your benefits will be used for bigger and more substantial care expenses. Keep in mind that it’s better to have a limited coverage than none at all.

4. If you’re married, go for a shared care policy.

Couples can broaden their coverage without the hefty cost through a shared care rider. This additional feature pools their benefits together. As a result, each spouse has an access to a range of coverage that’s twice the extent of his or her individual policies.

5. Choose an insurance company carefully.

The cost of policies can vary by insurer. Two insurers may offer the same level of coverage for different prices. The other may offer it for a lower price while the other may sell it for 90% more. Shop around. Buy from an insurer that offers the most reasonable deal in order to avoid overpaying for your policy. Apart from their rates, you also need to look at their ratings, claims payment history and financial stability.

It’s true that long term care insurance will come at a cost, but it is flexible enough to match almost any financial situation. All it takes is exploring the different ways on how you can keep it affordable and you can do it when you go to my website.

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