Monday, September
6 2010
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Monday, September
6 2010
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Announcing a new acquisition!!
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What's New at Forte for the year 2008 April 2008B - A Long-Term Care Insurance Primer By Forte News Department As
millions of Baby Boomers head into their retirement years, it’s surprising how
few actually know that the government provides little more than a few weeks of
financial support for home-based or nursing home care when the average person
needs it for at least a year. A 2006
Genworth Financial Survey says the national average private room rate at a
nursing home – the most expensive care option – was $194.28 per day/$70,912
annually. Long-term
care insurance (LTC) may be one solution for those who need to bridge the gap
between their savings and the actual costs they’ll face. Determining
and paying for long-term care is almost too complex a topic to be covered in a
short article like this, which is why it makes sense to discuss your individual
situation with a CERTIFIED FINANCIAL PLANNER™ professional. Here are some of the
questions you need to answer before investing in long-term care insurance or
other options: What resources do you have? We’re not just talking about money here.
While care giving puts a strain on family, it’s important to consider whether
family and friends are truly willing and able to help with your care, which can
provide a considerable financial and emotional benefit. Also, if you live in a community with
reliable volunteer resources to help, that’s something to note, though today’s
services may not be there tomorrow. How old are you and your spouse and
what’s your health history? People in
good health purchasing long-term care insurance at the age of 55 usually get
the most affordable deal in LTC insurance. But an individual’s family health
history and current health status are the real determinants of what your LTC
insurance policy will cost – or if you’ll qualify for coverage at all. Also, it’s important to note that 40 percent
of long-term care is provided to individuals between the ages of 19 and 65, so
the need for care can strike at any time.
Are you a single female? Again, personal and family
resources come into play here, but since women typically live longer than men –
and they still earn less on average than men – women should take a heightened
interest in providing for their long-term care safety net. Long-term care insurance might be a good
solution given their other investments and their health history. What types of services are covered? Over the course of time, long-term
care policies have evolved to place more emphasis on home-based care or
assisted living, since most people would choose to recover or live out their
last days in a familiar environment. A
basic LTC insurance policy pays for assistance with activities of daily living
including eating, dressing, bathing, toileting, incontinence, and transferring
(bed to chair, etc.). Each policy lists
the types of services that are covered under nursing home care and under home
health care. Homemaker services are
generally covered and other services as listed in the policy. What triggers coverage? A qualified LTC policy won’t go
into effect until the covered individual can’t perform two tasks of daily
living for a period, typically 90 days, or when that person needs substantial
supervision related to cognitive impairment.
This is where you have to read the fine print since some policies are
more restrictive than others. More affordable policies generally take longer to
kick in. See if coverage for other physical ailments is available as part of
the policy and what per-diem or monthly allowances are offered. What if I never want to go to a
nursing home? The idea is to cover every
eventuality. The best-designed LTC policies will pay the same amount of benefit
whether care is received in a long-term care facility, an assisted living
facility, an adult day care center, or in the home. Some policies do offer reduced percentages for home health care
versus nursing home care, but it’s a better idea to keep full percentages on
home health care benefits since most people would rather stay in their homes. What’s the record of particular
companies in this business? Over the past generation, more companies have gotten involved in the
LTC insurance business, and it makes sense to see not only who the leaders are
at the time you’re buying and what they’re offering, but how financially
healthy these companies are and have been over the course of time. You’ve
probably heard of insurance companies that have gone out of business and
stranded customers. There’s no restriction on that happening with LTC
providers, so check their ratings and financial history very carefully. April 2008 — This column is produced
by the Financial Planning Association, the membership organization for the
financial planning community, and is provided by David W. Henion CPA, a local
member of FPA. | ||||||||||||||
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