AARP Long Term Care Insurance Misconceptions

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.

Avoid Long Term Care Insurance Marriage Penalty

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.”

Long Term Care Insurance Savings For Women Executives A Little Known Benefit

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.

Long Term Care Insurance Rate Increase Misperceptions Are Leading Agent Concern

A significant percentage of consumers now hold a mistaken perception that costs for all long term care insurance policies will increase yearly and that is a major concern among leading insurance specialists polled by the American Association for Long Term Care Insurance.

“So much media attention has been given to increases on older long term care insurance policies that it’s understandable why consumers assume policies purchased today will similarly be impacted,” explains Jesse Slome, executive director of the American Association for Long Term Care Insurance, a national trade group that polled leading long term care insurance specialists.

According to feedback from participants in the Association’s survey, consumers interested in long term care insurance believe they’ll experience annual increases that can be as much as 50-to-90 percent.   “This is of course not the case,” Slome explains, “but overcoming perception when you are in a defensive position is difficult to accomplish.”  The Association hopes to develop consumer educational material that explains the increase that has affected older long term care insurance policies.

“The mistaken perception is definitely a barrier to people purchasing this important protection and unfortunately their fears are unfounded,” Slome adds.  “Policies sold today inherently have little risk of future rate increases so it is important to explain why the past does not predict the future and government regulations provide important protection for concerned consumers.”

Assisted Living Partner Sought By Long Term Care Insurance Association

An increasing number of aging Americans are seeking to reside in assisted living communities and using long term care insurance to pay for qualifying costs according to the director of the American Association for Long-Term Care Insurance.

“Americans mistakenly associate long term care with nursing home care and that’s clearly something that needs to be addressed, declares Jesse Slome, executive director of the Association, a national trade group focused on creating heightened awareness.   ”The majority of long term care today takes place outside of a nursing home environment.”

To make consumers aware of the growing importance of assisted living the Association is seeking an organization interested in creating heightened awareness.  “We have hundreds of thousands of consumers visiting the Association’s website each year and that alone provides us with an incredible opportunity to educate.”

The Association just published its mid-year report.  “Our focus on home care and the role of long term care insurance in paying for home care services has generated increased traffic to the Association’s website and exposure for the two supporting home care organizations that support our efforts,” Slome shared.   “A partner will enable us to create the same level of understanding of the many benefits of assisted living community residency for those who are aging and may or may not have a need for long term care.”

Long Term Care Insurance Association Supports New York Legislation

The American Association for Long Term Care Insurance announced support of legislation calling for a public awareness program creating heightened awareness of the availability of long term care insurance.

“Just over 400,000 New Yorkers own long term care insurance protection and an awareness campaign would certainly create heightened understanding of the risk to millions of New Yorkers,” explains Jesse Slome, dir4ector of the American Association for Long Term Care Insurance.  “Families would benefits and the future burden on New York taxpayers would be reduced.”

Speaking to selected New York insurance professionals Slome explained that long term care insurance can not just help New Yorkers receive the kind of quality care they want but can also help reduce the burden on taxpayers.  “People who have savings and assets and insurance to pay for care do not have a need to turn to the State for assistance,” Slome notes.  “A small investment in awareness can result in significant future tax savings.”

Video Explores Ways To Compare Long Term Care Insurance Costs

The costs, benefits and even health requirements required to obtain for long term care insurance can vary significantly according to a new consumer education video posted by the American Association for Long-Term Care Insurance.

“Every day we receive calls from consumers who are looking into long term care insurance for the first time,” explains Jesse Slome, executive director of the Association, a national trade group focused on creating heightened awareness.   ”This is one of the most complicated and confusing financial products and it can seem overwhelming and confusing.”

“You can shop online for a bank CD and even for simple insurance products like term life but that really is not true for long term care insurance,” Slome notes.  “We believe that this has evolved into a complicated product and that a consumer is best served by working with a knowledgeable specialist who understands the nuanced differences between policies and, most importantly, has been approved to compare and coverages from more than one company.  You are not likely to ever read your policy, though you should, but you want an agent who really understands and is familiar with the small print that will control how your benefits are eventually paid out.”

The brief two-and-a-half-minute informational recording was filmed at the 2014 Long Term Care Summit held in Kansas City.  Slome shares the three questions consumers can ask to determine if the insurance agent one works with is truly a specialist.    For more information and access to the video go to https://www.youtube.com/watch?v=LdCfR0zTgF4&feature=youtu.beyoutu.be

The American Association for Long Term Care Insurance is a national organization that advocates for sound and responsible planning for the real risk of needing long term care services.  The national organization is headquartered in Los Angeles, CA.