Tips on Long Term Care Planning

Long-term care planning must be personal. There is no one right way to plan for long-term care. Evaluate your options with a critical eye. Long-term care is not just a financial risk but is also an emotional issue that touches deeply held values.

Become educated about long-term care. Talk to friends and family about their experiences as caregivers and the different ways they paid for services.

Ask questions if you're confused. Don’t sign anything until you have an answer to all your questions. Aside from research, the most important safety tool is simple common sense. Don’t allow yourself to be pressured and don’t rush into anything.

Work with experienced advisors that you trust.

Long Term Care Insurance Rates Vary For Smokers

The latest example of how a couple reduced their cost for  long term care insurance has been added to the American Association for Long Term Care Insurance Consumer Information Center.

“About one in five American adults smoke and, as a result, they will pay more for various insurance products including long term care insurance,” explains Jesse Slome, executive director of the American Association for Long Term Care Insurance, a national trade group.

“However, while some insurers charge around 10 percent more, others will charge up to 45 percent more for the same level of coverage.”

An example of a real couple from Wisconsin has just been added to the Association’s website sharing real examples of ways to reduce the cost or gain better coverage.   ”The new feature on the Association’s website has generated enormous positive feedback and has become one of the most highly read sections on our website,” Slome adds.

“In this situation, the couple who were both in their late 50s received a recommendation for long term care insurance that would cost around $4,100 annually.   “While the policy was from a leading insurer, they decided to get a second opinion and requested information from a specialist who represented multiple long term care insurers,” Slome notes.  “Unfortunately, the inexperienced insurance agent either did not know the company he recommended charged a significantly higher premium to smokers.”

As a result, the couple were able to purchase a significantly higher level of long term care insurance benefits that actually cost them less money.   ”A benefit of specializing in this business is not just knowing more about the products but knowing the significant pricing differences that really matter over many years.”

“When starting the process of looking into long term care insurance, one of the most important decisions you’ll make is deciding who to work with,” Slome counsels.  The Association director suggests three questions to evaluate an insurance professional’s expertise in the long-term care insurance field.  “Ask how many individuals they have helped get insurance, the number of years they have focused on LTC insurance and how many insurance companies they are appointed with,” he advises.  “If an insurance broker is appointed with multiple companies, he or she will do the comparison shopping for you.”

Long Term Care Insurance Savings Tip Added To Association Website

The latest tip for saving money and getting better long term care insurance costs and benefits has been added to the website of the American Association for Long Term Care Insurance.

“The new section offering consumers real examples of ways real people achieved significant savings and found ways to get better benefits has become one of the most highly read sections on our website,” declares Jesse Slome, executive director of the American Association for Long Term Care Insurance, a national trade group.   The organization has been adding one new example each week.

“People mistakenly think all long term care insurance policies are the same,” Slome notes.  “Not only are policies different but prices are different.   An off-the-shelf approach often just isn’t in the best interest of the prospect and we’ve been showcasing real examples of such situations.”

The latest scenario discusses how a financial planner proposed coverage costing $5,000 a year that the single woman, age 56, felt was more than she wanted to spend.   “Working with a specialist who really understood how to take advantage of available discounts, she was able to get coverage for both her and her significant other for $1,400 a year,” Slome explains.

“Some insurance and financial products are highly specialized and long term care insurance is certainly one where the consumer can benefit by speaking with a knowledgeable specialist,” Slome adds.  “In this particular situation, the male in the relationship was adamantly opposed to getting insurance coverage.  However, by getting him coverage that cost $300-a-year, she was also able to save $800-a-year. ”

“One of the most important decisions you’ll make is deciding who to work with,” Slome advises.  The Association director suggests three questions to evaluate an insurance professional’s expertise in the long-term care insurance field.  “Ask how many people they have helped get this insurance, how many years they have focused on LTC insurance and how many insurance companies they are appointed with,” he advises.  “If an insurance broker is appointed with multiple companies, he or she will do the comparison shopping for you.”