It’s always nice when widely-read, national publications have good things to say about long term care insurance. On September 9, SmartMoney ran a lengthy article on the tax perks associated with buying coverage. On August 7, US News & World Report listed long term care planning as one of their five top tips when handling your aging parents’ finances.
Tuesday, September 22, 2009
Friday, September 18, 2009
What should older clients do with the cash value life insurance they no longer need? Rather than cash in their policies and face the dire tax consequences, many advisors are finding creating uses for the internal build-up, including paying for LTCi. Two relevant articles that speak favorably of the strategy were written for consumers and appeared in the August 30th edition of the Chicago Tribune.
Read the article here.
Wednesday, September 2, 2009
One of the most important benefits is the gathering of relevant information. The following is preliminary information gathered from the Partnership States. While the numbers may change, it sheds an important light on the subject of what people pay for long-term care insurance protection. It clearly shows that the majority of consumers are spending far less for long-term care insurance protection than what's reported in the consumer media.
The following data is based on over 70,000 individuals (under age 61) purchasing Partnership long-term care insurance policies between January 1, 2009 and June 30, 2009.
Premium Amount Percentage
Less than $500 18.1%
$500 - $999 33.2%
$1,000 - $1,499 11.1%
$1,500 - $1,999 10.2%
$2,000 - $2,499 7.6%
$2,500 - $2,999 6.0%
$3,000 - $3,499 4.7%
$3,500 - $3,999 3.3%
$4,000 and Over 5.3%
Why are these numbers so important?
Because, here is the number a highly respected organization reports to the media: "The average individual buyer in the first three months of 2009 is paying $2,129 during the first year of coverage." (June 8, 2009)
If consumers perceive $2,129 is the cost (that's $4,258 for a couple) they are going to believe that long-term care insurance is EXPENSIVE. And, they are not going to buy.
BUT 72.6% PAID LESS THAN $2,000. And more than half paid LESS THAN $1,000.
It is very hard to overcome perceptions. Let's hope facts will help.