Monday, August 25, 2014
Over two thirds of American adults are overweight and those considering long term care insurance protection need to understand some important facts explains the director of the American Association for Long-Term Care Insurance.
“People incorrectly believe that everyone qualifies to get long term care insurance and that all policies are pretty much identical,” declares Jesse Slome, director of the Long-Term Care Insurance a national trade group. ”That’s simply not the case and understanding how weight impacts your insurability is one of the areas people to know more about.”
According to Slome some 69 percent of American adults are overweight. “A significant number are considered obese which means they weigh 100 pounds more than the ideal maximum for their height,” the AALTCI director notes.
The Association just posted a new example of how weight impacted a real New York couple purchasing long term care insurance. “The husband was 5-7 and weighed just around 255 pounds which was the maximum acceptable weight for the insurer being recommended by his local insurance agent,” Slome notes. “The agent was encouraging John to submit an electronic application but that could have been a very costly mistake.”
Slome shared with consumers that each insurer establishes their own minimum and maximum. “If the scale tipped over the 256 pound mark when John underwent the insurer-required physical, he would have been declined,” Slome shared with the group. “The agent probably didn’t know that other insurers had higher weight limits. Few agents today have the interest or knowledge to help a consumer comparison shop,” he added.
Ultimately a long term care insurance specialist recommended John consider coverage from a copy that had no height and weight qualification. “This particular company will immediately reject anyone who has previously been declined insurance within the past three years,” Slome notes. “Had John been declined by the original insurer he would have been out of luck.”
“Too many inexperienced insurance agents today take an ‘off the shelf’ approach to recommending a long-term care insurance policy,” Slome notes. “Today, a consumer will really benefit by working with a specialist who has knowledge of all the major insurers, their provisions and requirements — the small print that few take the time to learn.”
Monday, August 18, 2014
Consumers mistakenly believe AARP, formerly the American Association of Retired Persons, offers AARP long term care insurance policies says the head of the American Association for Long Term Care Insurance.
“At one time, AARP had long term care insurance policies but no longer,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance. Slome was a guest on a radio financial talk show answering consumer inquiries.
“AARP makes its income off insurance product sales by endorsing providers,” Slome noted. According to Wikipedia data, AARP made $652 million in royalties from insurance companies that sold products referred by AARP and an additional $120 million for advertisements placed in its publications. “This was from 2008 data and at that time, AARP did offer an endorsed long term care insurance policy but that’s no longer the case.”
Slome explained to consumers that every product has advantages and disadvantages. “It’s good that people trust a brand name but that doesn’t mean it’s their best option and certainly may not be the best price.”
The American Association for Long Term Care Insurance is a national member-supported organization that advocates for sound and responsible planning for the real risk of needing long term care services. The national organization is headquartered in Westlake Village, CA.
Monday, August 11, 2014
Married couples thinking about long term care insurance protection should be aware of a potential price penalty that can apply when only one spouse applies or health qualifies for insurance.
“It’s not uncommon today to see married couples who only want long term care insurance protection for one spouse, perhaps a much older husband,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance. ”There are also many couples where one spouse has existing health issues that prevent qualifying for insurance. Or worse, the agent says they should apply only to have them declined by the insurer.”
According to the long term care insurance expert, some leading insurance companies do not offer the common spousal discount when only one spouse applies or heath qualifies. “While some do not offer a discount, others do offer a discount even when only one spouse applies and the resulting savings can be significant,” Slome points out.
The marriage penalty was cited in the Association’s latest online installment revealing real examples of how real people saved money when purchasing long term care insurance. “Because the policies are complex and they don’t sell many policies, insurance agents or financial planners today are often only familiar with one or two insurers,” Slome shared with consumers.
The example reports how a 63-year-old married man who was only seeking coverage for himself, saved 40 percent yearly simply because the long term care insurance specialist knew which companies offered single men lower rates and partial spousal discounts.
“He not only saved $1,000 a year but ended up with some significantly better protection than what his financial planner had recommended,” Slome adds. “We encourage comparison shopping but few consumers have the time or knowledge to really compare policies. True expertise comes from experience that is really acquired over time.”
Monday, August 4, 2014
Single women purchasing long term care insurance protection now pay as much as 50 percent more than single men for identical coverage. An expert shares how working single women can still avoid the price difference.
“Two thirds of all long term care insurance claim benefits are paid to women so it is understandable why insurers started charging women more than men,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI) a national trade group. Over the past year, leading insurers adopted ‘sex distinct’ pricing where women pay more for new coverage.
According to Slome, single women buying through the workplace can still benefit from the availability of unisex pricing. “There are millions of single women working today who can save significantly when purchasing long term care insurance offered in an employer setting,” he notes.
A recent AALTCI analysis found a single female age 55 could save anywhere from 45-to-135 percent on coverage bought at work. ”Buying coverage worth nearly $400,000 at age 85 can cost $1,825 annually when taking advantage of group discounts and unisex pricing,” Slome shares. “Without those worksite advantages, a single 55-year-old female might pay anywhere from $2,685 to $4,250 a year.”
Workplace Long Term Care Insurance Is Ideal For Women
“More than ever, small and mid-sized businesses with female owners and key executives have a significant reason to consider offering long-term care insurance,” explains George Mellendorf, president of LTC Solutions “Of course, long term care planning is essential for both men and women.”
Plans can be offered on a voluntary basis paid by payroll deduction or the employer may contribute a nominal amount. It may even be possible to offer company-paid coverage exclusively for executives and key employees. “Today, even small groups with as few as 10 employees can qualify for simplified health underwriting and pricing discounts that can reduce costs,” shares Mellendorf.