“Long-term-care insurance is expensive; however, it can be money well spent. The likelihood of needing long-term care at some point in your life is high -- government research shows that 70 percent of people 65 or older will need such care,” Cooper says.
He thinks that there is another option to consider in the increasingly expensive and unwieldy area of caring for the elderly: a single payer system.
“I think it will happen when we finally come to the same realization that we have to provide Medicare for all! And I am a Republican, a conservative. We have to improve our system because the demand will be twice what it is now in 10 years. But this is how we do things in this country: we wait until the very end as it is about to explode and then we decide to fix it,’’ Cooper says.
Eldercare Confidential: Cautionary Tales for Adult Caregivers and Caretakers of Parents and Spouses, by Chris Cooper. Indie Books International, LLC. $20.
Eleanor O’Sullivan is an award-winning freelance journalist who writes for Financial Advisor magazine.
The 'Shady Acres' Myth Of Long-Term Care
November 30, 2016
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Hybrid policy is an available option today but I wouldn’t recommend it because of its limitations. It may seem cheaper but I think that’s just in the beginning. Since its benefits are limited, you might end up paying for more. Paying for nursing homes or other long term care facilities out-of-the-pocket is not recommended because of their high cost. Another problem can also arise and that’s when you zero out your policy. When this happens, you have nothing left for your family in case something happens to you. Long term care insurance is still reliable despite a few issues in the industry. It provides comprehensive coverage, peace of mind and can protect your loved ones from expensive long term care costs. To help you plan for long term care, here are reliable resources you can use: Association for Long Term Care Planning - www.altcp.org/long-term-care-insurance US Department of Health and Human Services Long Term Care Website: longtermcare.gov
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Some insurance companies have had rate increasing on older blocks of Long Term Care Insurance. However this has nothing to do with increased lifespan and almost every claim is paid. First, reason for increasing have to do primarily with low interest rates and low lapse rates. These plans were never priced for the very low interest rate environment we have had for many years. The plans today are priced for the low interest rate environment. In addition, the older plans were priced for much high lapse rates. Today, less than 1% of these policies ever lapse. Underwriting was also less conservative than it is today so claim rates were higher than expected. Most companies have much more conservative and scientific underwriting so they can price health condition properly or decline cover of people with certain health issues which make them much higher than average risk. Most companies in the past did offer “unlimited†benefit coverage which, with a few exceptions, are no longer available. The American Association for Long Term Care Insurance say almost all claims are paid and paid on a timely basis. There have been a few lawsuits, some involved people who were attempting to get coverage on items not in the policy to begin with or who had committed fraud in obtaining the coverage itself. Nobody is reneging on claims. Some companies have never raised premiums. While it is true some companies have raised premiums, the premiums were much lower to start with and even with the increases they are lower than what new plans would cost for the same benefit today. Most plans are NOT fixed time limit … they are, with a few exceptions, pool of money products. If a person does not use the maximum they are entitled to each month at the time of claim they don’t lose the money, it stays in the pool and grows with inflation. Unlimited plans are available in both the traditional market and hybrid market. There is no turmoil in the Long Term Care Insurance field. Business for many companies are up. Business for specialists, like myself, are way up. Requests for information are up even more. Hybrid insurance policies are available but only a handful have traditional benefit triggers. This is a reason to speak with a specialists. Most financial advisors are NOT Long Term Care specialists so they really don’t have a very good understanding of any of these LTC products. Traditional plans are not very confusing and hybrid plans can be more confusing … but a LTC specialist who may place 200 to 300 policies a year or more will have a very good understanding of the products and how they work and the underwriting. You also don’t mention the Partnership Program. These plans, available with traditional LTC policies in most states, provide additional dollar-for-dollar asset protection. Here are some outstanding resources for information: LTC Planning News: includes news stories on health and Long Term Care Planning. It also has videos and website links which I use often: www.longtermcareplanningnews.com. US Department of Health and Human Services LTC site: http://longtermcare.gov. The American Association for Long Term Care Insurance (AALTCI) Consumer and Industry Advocacy Group: solid information: www.aaltci.org
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Jonathan Pond, Financial Planner, says that 90% of estates are spent this way: 1) nursing home 2) IRS 3) children 4) grandchildren 5) charity The Federal Deficit Reduction Act provided for every state to have a Partnership program to provide asset protection for those who buy qualified long term care insurance policies. http://www.partnershipforlongtermcare.com/ An alternative are linked products, Life Insurance or Annuities with long term care riders. In most states you can also use your qualified money (IRA/401k) to fund your plan. http://lifeinsuranceltc.com