Tag Archives: Term Insurance

Most Boomers Have Poor Understanding of Long-Term Care Insurance

Most Boomers Have Poor Understanding of Long-Term Care Insurance

The generation that prided itself on being cutting edge when it came to change seems to have fallen behind when it comes to understanding long-term care. According to a survey from America’s Health Insurance Plans (AHIP), many Baby Boomers not only have mistaken ideas about who pays for long-term care services, but they also have not thought about protecting themselves with long-term care insurance.

The survey, conducted for AHIP by the marketing firm StrategyOne, uncovered the following data:

·   Most Baby Boomers have not planned for long-term care expenses. Only one in four of those polled who were nearing age 60 said they were “very familiar” with long-term care insurance, and 41% said they had not had any discussions about long-term care in the past twelve months.

·   While few Baby Boomers have coverage for long-term care expenses many mistakenly think that they do. In a separate survey from AARP, 29% of respondents age 45-plus said they had purchased long-term care insurance. In contrast, the National Association of Insurance Commissioners reported in 2005 that just 5.2 million Americans had long-term care insurance. Even if all of those covered were Boomers, this would mean that only 6.6% of the Boomer population of 78,000,000 is covered. However, since many of these policies protect individuals from previous generations, the percentage of covered Boomers must be even smaller. In addition, the Index of Long-Term Care Uninsured estimates that approximately 95% of those between the ages of 45 and 64 are uninsured for long-term care, a figure in stark comparison with Baby Boomers’ own characterization of their coverage.

·   The majority of Baby Boomers think Medicare or “other health insurance” will pay for long-term care. More than half (54%) of Baby Boomers believe Medicare pays for long-term care services, and 44% believe “other health insurance” will pay. Yet, generally, neither Medicare nor other health insurance offers coverage for long-term care. Medicaid may cover long-term care services, but only after requiring individuals to spend down nearly all of their assets to qualify for assistance.

Long-Term Care Planning: A Pre-Retirement Decision?

Long-Term Care Planning: A Pre-Retirement Decision?

In the past, new and soon-to-be retirees generally assumed that they could put off long-term care planning until their later years. However, a new study shows that people who purchase long-term care insurance (LTCI) before retirement may stand to benefit greatly.

The study, conducted by the American Association for Long-Term Care Insurance (AALTCI), reveals significant advantages to starting the long-term care planning process in your 50’s, or even earlier. The study was based on information collected from more than 250,000 consumers who purchased LTCI in 2007.

The AALTCI examined data from 10 leading insurers to determine the percentage of applicants who qualified for preferred health discounts on LTCI. The Association also looked at the percentage of applicants who did not qualify for insurance because of a pre-existing condition.

The Eye-Opening Statistics

Here are a few of the interesting statistics released from this enlightening study:

·   On average, 22.9% of applicants between the ages of 60 and 69 were declined coverage because of a pre-existing condition

·   42.2% of applicants between 70 and 79 were declined

·   69.8% of applicants over 80 were declined

·   On average, just 13.9% of applicants aged 50 to 59 were declined

·   51.5% of people between the ages of 50 and 59 who applied and were accepted for coverage qualified for preferred health discounts

·   66.8% of applicants between the ages of 40 and 49 qualified for the discount

These numbers clearly suggest that consumers may be better off if they apply for LTCI before retirement, when they are less likely to have a pre-existing medical condition.

Not only are younger applicants more likely to be accepted for coverage, but they also stand a better chance of receiving a valuable preferred health discount. These discounts can reduce the cost of long-term care insurance by 10% to 20% annually, which can amount to savings of hundreds of dollars a year for a couple. Additionally, these discounts last a lifetime. Once an applicant qualifies for a preferred health discount, the insurer cannot retract it should the applicant’s health change in the future.

Losing At the Waiting Game

Still, the vast majority of consumers wait until after retirement to apply for LTCI. According to the AALTCI, approximately 400,000 people obtained LTCI coverage in 2007, and 84% of them purchased a policy before the age of 65. However, based on this new study, consumers may want to consider purchasing a policy even sooner.

“Many people still wait too long to start the planning process only to discover they can’t get coverage no matter how much they are willing to pay,” Jesse Slome, Executive Director of AALTCI, said in an association press release. “Planning for long-term care is similar to retirement planning. There are significant advantages and reasons to start early. Your health when you apply is probably the most important.”

More Preferred Health Discounts All Around

The new AALTCI study also shows that, in general, more people qualified for preferred health discounts in 2007 as compared to 2005. This may be a sign that our nation’s population is a little healthier than it was just two years ago.

However, most LTCI applicants who received preferred health discounts were younger in age, according to the study. For example, 66.8% of applicants between 40 and 49 received discounts in 2007 as compared to 53.7% in 2005—a 13.1% increase.

Better Shop Around

However, the AALTCI points out that each insurer follows a different set of standards when it comes to deciding who qualifies for discounts and which applicants will be accepted or declined for coverage. Additionally, discounts and insurance rates vary greatly depending on your age, marital status and health. Therefore, if you’re considering buying LTCI, you should shop around before settling on an insurer.

“It pays to speak with a knowledgeable long-term care insurance professional who can offer coverage from more than one insurer,” Slome said in the AALTCI press release. “The difference in cost can be as much as 30 percent or more annually and since it rarely is advantageous to change policies, it pays to get the best coverage for the best price from the onset.”

Long-Term Care Planning: Are You in Denial?

Long-Term Care Planning: Are You in Denial?

By now, you’ve probably heard of long-term care insurance (LTCI). Because LTCI helps cover the exorbitant costs of long-term care, this insurance can protect your family’s finances if you were to suffer from a debilitating condition.

So why do countless consumers pass on purchasing this valuable insurance? While some families truly can’t afford LTCI, most have a different excuse: they simply don’t want to deal with the emotions that long-term care planning can stir up.

Obviously, it’s not pleasant to imagine a scenario that involves you being unable to care for yourself. However, this is not an excuse to avoid planning ahead for the possibility of such an event.

Avoiding denial

If you, like thousands of other U.S. consumers, have not given much thought to long-term care planning, you may be in denial. Too many people assume that because they are healthy now, they will remain healthy throughout their lifetime. Unfortunately, there are numerous medical conditions and diseases that even relatively healthy people can contract in their later years.

Just look at the numbers: Statistics show that one in every five people who reach the age of 65 will eventually require some form of long-term care. This is why it is crucial to plan ahead.

Plus, with continual advances in the medical industry, Americans are living increasingly longer lives. Recent estimates give a healthy 65-year-old man a 24% chance of living to at least 90 and a healthy woman a 35% chance of living that long. While this is great news, there’s a catch: the longer we live, the more likely we are to suffer from a long-term care event. This is why it’s critical for each and every family to avoid denial and start thinking about long-term care.

The financial factor

Many families claim that they haven’t bought LTCI because it simply won’t fit into their budget. Considering that LTCI can be quite costly, this is a viable excuse for some families. However, many people simply underestimate the value of LTCI. Not only can this insurance protect your family’s finances—it can also protect their emotional and physical well-being.

That’s because a long-term care event doesn’t just impact families financially. There are many emotional effects, as well. Studies show that 60% of all long-term care is provided in a home or community setting. More often than not, the ill person’s spouse, children or other family members end up providing that care—which can cause emotional turmoil for everyone involved.

Caring for a sick adult also presents many physical challenges. Many caregivers suffer from a lack of sleep and increased stress levels, which often leads to health problems of their own.

However, if you have a LTCI plan in place, you may be able to diminish many of these negative effects for your loved ones. An effective plan not only removes much of the financial burden, but it can also ease some of the physical and emotional hardships of caring for a sick loved one.

Devise a plan today

It’s clear that every family stands to benefit from an effective long-term care plan, which could include LTCI coverage. If you don’t think about long-term care today, you are basically deferring the responsibility to your loved ones. After all, they will be the ones who will have to care for you if you suffer from a long-term care event.

If you want to discuss your LTC coverage options, meet with Brian Gruss. Brian can evaluate your unique situation and help you customize an effective plan.

Invest in Your Business and Your Key Employees

Invest in your business and your key employees

Dear Fellow Business Owner

Employees are your company’s most important asset and in today’s competitive job market it is important to reward, retain and invest in top talent. That’s why, more than ever, employers are adding long-term care insurance to their benefits plans.

Your employees have worked hard to build their assets over the years. Should a long- term care event happen, how would they protect that savings?  Long-term care insurance is a critical component of any financial plan.  A good financial plan will help protect assets, cover the cost of long-term care services and help provide support for employees and their families. Perhaps it’s time your organization considered this very important benefit.

Incorporating long-term care insurance into your benefits package is easy. Depending on your objectives, you can choose to offer this plan as an employer-paid or a voluntary benefit, with minimal administration. By offering this coverage, you show employees and their families that you care about their well-being, and you support the future success of your company.

To learn more about how to include long-term care insurance in your employee benefits plan, please contact me at 509-720-8178  or brian@briangruss.com

Nursing Home Insurance

Nursing Home Insurance, which is more commonly known now as Long Term Care Insurance.  Purchasing a Long Term Care Insurance policy can be one of the most important policies you buy.  I tell my customers that like auto insurance you buy long term care insurance with the hopes that you don’t use it.  Unlike buying term life insurance, long term care is a little more complicated.  For one there isn’t one standard rate for everyone, so quoting I feel requires a chat with a reputable and knowledgeable long term care insurance insurance planner.  There are many many different options that go into a long term care policy.  Knowing your goals and your risks regarding the long term care policy, I can customize your long term care plan for you.  Give me a call today, 509-218-7329

Short Term Medical Insurance

Short Term Medical insurance covers you for as little as 30 days, and up to 365 days. There is many plans to choose from, from catastrophic to full coverage.

Short Term Medical Insurance is an affordable COBRA alternative and can be up to 1/3 the cost.

For example a 24 year old male can get a plan with a $1000 deductible, $2000 out of pocket maximum, $2,000,000 lifetime maximum, traditional 80/20 plan with a Prescription discount card for $70.88/mo.

Starting a new job and your benefits don’t start right away, don’t go a single day without health insurance, there is way to much exposure to you and your family.

Short Term Medical Insurance

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