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Monday, April 30, 2012
How do the new long-term care partnership plans differ from other Long Term Care insurance plans?
About 30 states have adopted Long-Term Care Insurance Partnership plans and others will undoubted do so. We will post a fuller explanation of the significant benefits these plans offer. But they are basically the same long-term care insurance policy ... just "New and Improved" with a very special added benefit; the State-provided additional asset protection feature. We'll post more on this Website shortly.
Monday, April 23, 2012
Useful Tips
Useful Tips:
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. There is a lot of help available through consumer organizations, books you can read, and websites with detailed information. Let someone else do the hard work. Do not hesitate to seek professional help for legal, tax, and insurance issues. Professionals with years of experience are experts who know the latest information and can help you with the details. Work with a certified LTC insurance specialist to customize a policy to fit your budget and needs. IT’S NEVER TO EARLY – OR TOO LATE - TO PLAN FOR LONG TERM CARE. With any plan, the most important thing is to get started. It may be challenging, but the sooner you start, the more options you have
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. There is a lot of help available through consumer organizations, books you can read, and websites with detailed information. Let someone else do the hard work. Do not hesitate to seek professional help for legal, tax, and insurance issues. Professionals with years of experience are experts who know the latest information and can help you with the details. Work with a certified LTC insurance specialist to customize a policy to fit your budget and needs. IT’S NEVER TO EARLY – OR TOO LATE - TO PLAN FOR LONG TERM CARE. With any plan, the most important thing is to get started. It may be challenging, but the sooner you start, the more options you have
Monday, April 16, 2012
Long Term Care Insurance Rate Hikes Explained By Industry Leader
Costs for long term care insurance in 2012 have risen compared to the prior year and several insurers have filed for rate increases raising concern among consumers and consumer groups.
“No one likes to pay more so concern is understandable,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance, an industry trade group representing several thousand specialists who market long term care insurance. “But there is quite a bit of misinformation surrounding what’s taking place.”
To address the issue, the industry executive has been speaking with reporters, consumer representatives and making available association staff to discuss the matter with consumers. Slome appeared on Martha Stewart’s radio network to explain what’s taking place.
“Historic low interest rates are the primary culprit and the Federal Reserve has indicated it plans to keep rates this low for the foreseeable future,” Slome notes. For every one-half percent drop in interest rates, a long-term care insurance company needs a 15 percent premium hike to build up the needed capital to pay future anticipated claims.
Regarding the need for rate increases on existing long term care insurance policies, Slome explains it is never a take it or leave it proposition for the consumer. Insurers always offer an option by which the policyholder can continue to pay the same amount.
The Association executive points to a recent request for rate hike from a leading insurer. Policies affected are those offering a five percent automatic compound or simple inflation coverage, where benefits automatically increase by five percent each year for the life of the policy. “The company offers an option to reduce their future inflation percentage which allows people to avoid the rate increase altogether,” Slome says.
This is a prospective reduction in inflation; so all inflation additions previously applied to the policy will remain in place. “There is no reduction of their current benefit level,” Slome points out. “Only future inflation increases would be at a rate lower and the new inflation percentage offered as an option to customers will be in the range of 2.7% to 3.9%.”
Slome advises consumers with long term care insurance policies to speak with their agent regarding their concerns. “The protection is still incredibly important for people to have and valuable to those who need it,” Slome one of the nation’s long term care insurance expert points out. “Last year, insurers paid over $6 billion in benefits to some 200,000 individuals who own long term care insurance. The largest open claim has surpassed $1.5 million and the policyholder paid less than $2,500 for their protection.” Some eight million Americans currently have some form long term care insurance protection.
“No one likes to pay more so concern is understandable,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance, an industry trade group representing several thousand specialists who market long term care insurance. “But there is quite a bit of misinformation surrounding what’s taking place.”
To address the issue, the industry executive has been speaking with reporters, consumer representatives and making available association staff to discuss the matter with consumers. Slome appeared on Martha Stewart’s radio network to explain what’s taking place.
“Historic low interest rates are the primary culprit and the Federal Reserve has indicated it plans to keep rates this low for the foreseeable future,” Slome notes. For every one-half percent drop in interest rates, a long-term care insurance company needs a 15 percent premium hike to build up the needed capital to pay future anticipated claims.
Regarding the need for rate increases on existing long term care insurance policies, Slome explains it is never a take it or leave it proposition for the consumer. Insurers always offer an option by which the policyholder can continue to pay the same amount.
The Association executive points to a recent request for rate hike from a leading insurer. Policies affected are those offering a five percent automatic compound or simple inflation coverage, where benefits automatically increase by five percent each year for the life of the policy. “The company offers an option to reduce their future inflation percentage which allows people to avoid the rate increase altogether,” Slome says.
This is a prospective reduction in inflation; so all inflation additions previously applied to the policy will remain in place. “There is no reduction of their current benefit level,” Slome points out. “Only future inflation increases would be at a rate lower and the new inflation percentage offered as an option to customers will be in the range of 2.7% to 3.9%.”
Slome advises consumers with long term care insurance policies to speak with their agent regarding their concerns. “The protection is still incredibly important for people to have and valuable to those who need it,” Slome one of the nation’s long term care insurance expert points out. “Last year, insurers paid over $6 billion in benefits to some 200,000 individuals who own long term care insurance. The largest open claim has surpassed $1.5 million and the policyholder paid less than $2,500 for their protection.” Some eight million Americans currently have some form long term care insurance protection.
Monday, April 9, 2012
Small Business Owners Unaware of Long-Term Care Tax Deductions
The majority of small and mid-sized business owners are not familiar with the tax deductible benefits available when offering long-term care insurance plan to employees. According to one insurance company executive, tax-deductible long-term care insurance remains the best-kept secret and employers are missing out on billions of dollars of potential tax savings.
Federal and a growing number of states now offer tax deductions and tax credits for the purchase of long-term care insurance. The cost of coverage may be fully tax deductible to the business and a great deal of flexibility can be offered when initiating a plan. In addition, corporate pricing breaks of 5 percent to 10 percent, in addition to substantial spousal or couples discounts, are the norm.
According to the 2009 edition of A Business Owner’s Guide To Long-Term Care Insurance, any form of business ownership can enjoy deductions for a long-term care insurance premium. Benefits received are, as a rule, always tax-free. Premiums might be considered imputed income to an employee depending on how the company is held.
Insurers offer various forms of long-term care insurance plans designed specifically to meet the needs of either small or large employers. Policies can be personally owned but company-paid, thus staying with the insured after he or she leaves a company or retires.
Long-term care insurance offers great design flexibility for employers. For example, employers can pick and choose who participates in a plan. Properly done, there are no ERISA issues, unlike group health insurance, according to tax experts. These plans are often called “carve-outs” which allow employers to be “selective” when determining who would be covered under a long-term care insurance benefit.
Policy design provisions enable employers to pay premiums for fixed periods of time, at which point the policy is paid up for life. One of the significant benefits is that policy benefit amounts keep increasing under inflation protection options with no risk of future long-term care insurance rate hikes.
According to American Association for Long Term Care Insurance experts, policies available to employers may allow two spouses to share one benefit pool. This has the potential to double the benefit any single insured might have and eliminates much of the problem as it pertains to the benefit period chosen. At the death of one spouse, the other typically inherits the other remaining benefits free of charge.
Federal and a growing number of states now offer tax deductions and tax credits for the purchase of long-term care insurance. The cost of coverage may be fully tax deductible to the business and a great deal of flexibility can be offered when initiating a plan. In addition, corporate pricing breaks of 5 percent to 10 percent, in addition to substantial spousal or couples discounts, are the norm.
According to the 2009 edition of A Business Owner’s Guide To Long-Term Care Insurance, any form of business ownership can enjoy deductions for a long-term care insurance premium. Benefits received are, as a rule, always tax-free. Premiums might be considered imputed income to an employee depending on how the company is held.
Insurers offer various forms of long-term care insurance plans designed specifically to meet the needs of either small or large employers. Policies can be personally owned but company-paid, thus staying with the insured after he or she leaves a company or retires.
Long-term care insurance offers great design flexibility for employers. For example, employers can pick and choose who participates in a plan. Properly done, there are no ERISA issues, unlike group health insurance, according to tax experts. These plans are often called “carve-outs” which allow employers to be “selective” when determining who would be covered under a long-term care insurance benefit.
Policy design provisions enable employers to pay premiums for fixed periods of time, at which point the policy is paid up for life. One of the significant benefits is that policy benefit amounts keep increasing under inflation protection options with no risk of future long-term care insurance rate hikes.
According to American Association for Long Term Care Insurance experts, policies available to employers may allow two spouses to share one benefit pool. This has the potential to double the benefit any single insured might have and eliminates much of the problem as it pertains to the benefit period chosen. At the death of one spouse, the other typically inherits the other remaining benefits free of charge.
Monday, April 2, 2012
Make me smarter! Are there secrets worth sharing before I meet with an agent?
Each insurance carrier has one or more "sweet spots" generally based on which ages and health conditions they believe are most desirable based on their experience or future expectations. Some offer advantageous discounts for couples buying together. Others will offer a discount even when only one buys. Fortunately, most knowledgeable long-term care insurance professionals have access to policies from multiple insurers and can show you an apples-to-apples comparison without you having to be a NASA scientist (with all respect to those NASA scientists and engineers reading this!). The savings to you could be significant.
Monday, March 26, 2012
Long Term Care Insurance Career Center Launched
An online Career Success Center has been established to attract individuals to a full or part-time career selling long-term care insurance. Launched by the American Association for Long-Term Care Insurance (www.AALTCI.org) the Center aims to provide valuable information to those looking for a new career opportunity or those seeking a means of earning additional income.
“Selling long-term care insurance provides people with the opportunity to help individuals and their families and, at the same time, earn what can be a significant income,” explains Jesse Slome, AALTCI’s executive director. The Association created the online center as the result of increasing inquiries from individuals interested in learning more about career and sales opportunities.
According to AALTCI, over 1,000 people purchase long-term care insurance on a daily basis. “The need for this protection is growing and sales would be higher if there were more skilled people available to market the product to individuals and employer groups,” Slome admits. “The new center will provide meaningful but balanced information that will enable people to evaluate and decide if this is something they should pursue.”
The initial online center initially features a variety of audios addressing getting started in the business through what your first year should look like. “We also provide sales and marketing information for insurance professionals who have unsuccessfully tipped a toe into the pool but wish to learn how to be successful,” Slome adds. The organization plans to expand the center over time to address critical aspects for career success including the long-term care insurance industry’s first national job postings bulletin board.
Access to the online center is free of charge at www.aaltci.org/sell. Established in 1998, the American Association for Long-Term Care Insurance is the national trade organization exclusively focused on creating heightened consumer awareness and supporting insurance professionals who market long-term care solutions.
“Selling long-term care insurance provides people with the opportunity to help individuals and their families and, at the same time, earn what can be a significant income,” explains Jesse Slome, AALTCI’s executive director. The Association created the online center as the result of increasing inquiries from individuals interested in learning more about career and sales opportunities.
According to AALTCI, over 1,000 people purchase long-term care insurance on a daily basis. “The need for this protection is growing and sales would be higher if there were more skilled people available to market the product to individuals and employer groups,” Slome admits. “The new center will provide meaningful but balanced information that will enable people to evaluate and decide if this is something they should pursue.”
The initial online center initially features a variety of audios addressing getting started in the business through what your first year should look like. “We also provide sales and marketing information for insurance professionals who have unsuccessfully tipped a toe into the pool but wish to learn how to be successful,” Slome adds. The organization plans to expand the center over time to address critical aspects for career success including the long-term care insurance industry’s first national job postings bulletin board.
Access to the online center is free of charge at www.aaltci.org/sell. Established in 1998, the American Association for Long-Term Care Insurance is the national trade organization exclusively focused on creating heightened consumer awareness and supporting insurance professionals who market long-term care solutions.
Monday, March 19, 2012
Pattern Predicts Dementia Onset And Long Term Care Need
According to the Alzheimer’s Association, mild cognitive impairment (MCI) is “a condition in which a person has problems with memory, language, or another mental function severe enough to be noticeable to other people and to show up on tests, but not serious enough to interfere with daily life.” This type of mental state is considered a risk factor for dementia, the longest and most costly of all long-term care needs according to the American Association for Long-Term Care Insurance.
Some scientists studies have found that about 10 percent to 15 percent of those with MCI will progress to dementia each year. The new study which appears in the September issue of the Archives of Neurology, sought to deterine if telltale signs within MCI could determine those individuals who would progress more rapidly to full-blown dementia.
Researchers collected data on people with mild cognitive impairment and evaluated these individuals using brain scans and cognition tests. Over the next two years of follow-up, some 25 percent of the individuals did go on to develop dementia.
The researchers noted that if an older adult is starting to display problems in daily life, such as problems shopping independently, problems managing their own finances, problems performing household chores, and problems maintaining their hobbies, they are more likely to develop a dementia within several years.
Dr. Ronald C. Petersen, director of the Alzheimer’s Disease Research Center at the Mayo Clinic in Rochester, Minn., agreed that, despite the lack of effective treatments, spotting Alzheimer’s disease early remains important. “If people in the family start to recognize a change in memory/learning patterns, that might be sufficient to identify someone who could develop Alzheimer’s disease,” Peterson said. “Don’t wait until the person is having trouble driving, is having trouble paying their bills or having trouble functioning in the community — that’s dementia,” he said. “This study tells us that we can identify important symptoms earlier and it may be worthwhile doing so.”
Some scientists studies have found that about 10 percent to 15 percent of those with MCI will progress to dementia each year. The new study which appears in the September issue of the Archives of Neurology, sought to deterine if telltale signs within MCI could determine those individuals who would progress more rapidly to full-blown dementia.
Researchers collected data on people with mild cognitive impairment and evaluated these individuals using brain scans and cognition tests. Over the next two years of follow-up, some 25 percent of the individuals did go on to develop dementia.
The researchers noted that if an older adult is starting to display problems in daily life, such as problems shopping independently, problems managing their own finances, problems performing household chores, and problems maintaining their hobbies, they are more likely to develop a dementia within several years.
Dr. Ronald C. Petersen, director of the Alzheimer’s Disease Research Center at the Mayo Clinic in Rochester, Minn., agreed that, despite the lack of effective treatments, spotting Alzheimer’s disease early remains important. “If people in the family start to recognize a change in memory/learning patterns, that might be sufficient to identify someone who could develop Alzheimer’s disease,” Peterson said. “Don’t wait until the person is having trouble driving, is having trouble paying their bills or having trouble functioning in the community — that’s dementia,” he said. “This study tells us that we can identify important symptoms earlier and it may be worthwhile doing so.”
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