Monday, February 25, 2013

Low Cost Long Term Care Insurance Options For Women

A single woman will pay between $900 and $1,300 yearly for long term care insurance protection currently being offered by leading insurers. However, they will soon be paying more warns one of the nation’s leading industry experts.

“Women have the greatest need to do some long term care planning but the opportunity to take advantage of currently available low rates will end soon,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance. The head of the national trade group explains that insurers who currently charge men and women equal amounts for coverage will soon start charging higher rates to women.

“The difference will be significant, as much as 40 percent more, so the incentive to act sooner rather than later can really result in significant savings,” Slome notes. The organization reports that a single woman, age 55 who qualifies for preferred health rates will pay between $902 and $1,325 yearly for $164,000 of current coverage.” The pricing is based on policies offering a Future Purchase Option feature which allows the individual to add to their coverage in future years without having to meet health qualifications.

“The Future Purchase Option is an ideal way for women with more limited budgets to lock in some affordable long term care insurance now,” Slome adds. “They take advantage of the current lower pricing and any increases they may opt for are also priced using the current formula, truly one of those win-wins.”

Not all insurers offer money-saving options like this and Slome advises consumers work with a knowledgeable specialist in the field. “Each insurance company offers different options and sets their own price for coverage and only a select few agents sell long term care insurance coverage from five or six carriers,” he adds. “This is a complex product and you want to work with someone who specializes in the field and, at the same time, has your best interest at heart.”

Monday, February 18, 2013

Long Term Care Insurance Deductible Cuts Cost 15 Percent

Choosing a long term care insurance policy with a 90-day deductible can reduce your cost by hundreds of dollars annually according to industry experts.

“You can significantly reduce the cost of long term care insurance when you select the right combination of benefits and option,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group. “In fact the elimination period selection is one of the more important ways people can reduce their costs.” The national long term care insurance expert points out that the term Elimination Period is industry jargon for the deductible time period when a policyholder must bear the cost of qualifying claims.

According to an Association study released today, selecting a 90-day deductible period will reduce costs by over 15 percent annually versus selecting a 30-day deductible. A 55 year old in standard health could expect to pay roughly $2,220 per year for an immediate level of protection equal to $164,000 when they chose a 30-day deductible. The policies examined by AALTCI included a three percent annual compound inflation growth option. By extending the deductible to 90 days, the cost would be lowered to $1,882, a 15.225 percent reduction.

“Most people don’t wake up one morning and find they need round-the-clock care,” Slome acknowledges. “We often age into a need for care so that family members often provide unpaid care at the early stages thus a longer deductible period when one pays for their own care makes a lot of sense.” The cost is higher for shorter elimination periods because insurers will not just pay out more claim dollars but also see more claims incurring during this time period. “People who need long term care do sometimes recover from the condition and can go off claim,” Slome explains.

“Many people have a deductible for their homeowners, car and even health insurance,” Slome notes. “It makes sense to share some of the risk with the insurance company as a way of achieving significant savings. The same is true when it comes to long-term care insurance.”

Monday, February 11, 2013

Long Term Care Insurance Like Products For Those With Health Issues

Individuals who are unable to meet health standards required by long term care insurance companies now have several options available according to industry experts.

“A growing number of people only start looking into long term care insurance because they know they have health issues which could result in a lengthy need for costly care,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group. “Unfortunately, often they can no longer meet the health requirements to obtain coverage from the some insurers but that is not true for all of them.” He notes this is especially common among seniors over the age of 65.

According to the Association, a number of insurance companies offer coverage to those who might have health issues making them ineligible for protection from companies like New York Life, Genworth, Northwestern Mutual or Mass Mutual. “The options range from more traditional-looking long term care insurance policies to what I call long-term care-like coverage that will pay benefits for the vast majority of situations that arise causing the need for long-term care,” Slome notes.

Often coverage available comes with limitations national long term care insurance experts explain. “You may not be able to get coverage for say a condition lasting 20 years, but protection for conditions that last three years,” Slome explains. “But some coverage is always going to be better than none.” Costs for coverage for those with health conditions tend to be higher. “That’s due to the fact that health conditions are certainly an indication of higher risk of needing care,” he notes. “People understand that and generally if they have been declined by one long term care insurance company, they are willing to pay a bit more to get the coverage somewhere else.

” Slome expects more insurance professionals will become familiar with these options in the years to come. “For now, there are really a limited number of specialists who truly understand how these products work, the health requirements and can compare them to traditional long-term care insurance policies,” he concludes.

Monday, February 4, 2013

Long Term Care Insurance Deductible Cuts Cost 15 Percent

Choosing a long term care insurance policy with a 90-day deductible can reduce your cost by hundreds of dollars annually according to industry experts.

“You can significantly reduce the cost of long term care insurance when you select the right combination of benefits and option,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group. “In fact the elimination period selection is one of the more important ways people can reduce their costs.” The national long term care insurance expert points out that the term Elimination Period is industry jargon for the deductible time period when a policyholder must bear the cost of qualifying claims.

According to an Association study released today, selecting a 90-day deductible period will reduce costs by over 15 percent annually versus selecting a 30-day deductible. A 55 year old in standard health could expect to pay roughly $2,220 per year for an immediate level of protection equal to $164,000 when they chose a 30-day deductible. The policies examined by AALTCI included a three percent annual compound inflation growth option. By extending the deductible to 90 days, the cost would be lowered to $1,882, a 15.225 percent reduction.

“Most people don’t wake up one morning and find they need round-the-clock care,” Slome acknowledges. “We often age into a need for care so that family members often provide unpaid care at the early stages thus a longer deductible period when one pays for their own care makes a lot of sense.” The cost is higher for shorter elimination periods because insurers will not just pay out more claim dollars but also see more claims incurring during this time period. “People who need long term care do sometimes recover from the condition and can go off claim,” Slome explains.

“Many people have a deductible for their homeowners, car and even health insurance,” Slome notes. “It makes sense to share some of the risk with the insurance company as a way of achieving significant savings. The same is true when it comes to long-term care insurance.”