Friday, October 30, 2015

9 Things to Consider When Buying Insurance for Long Term Care

Have you ever thought about who’s gonna take care of you when you can no longer take care of yourself?

I know it’s scary but don’t worry because there are different options that you can explore, which can take care of your healthcare and long term care needs.

The trick here is finding the right financial tool or insurance product that can cover expensive long term care costs.

Getting long term care insurance policy is one of the options you have. As a matter of fact, around 13% of Americans have already purchased ltc insurance. This number is low given the fact that about 70% of Americans 65 and above will require any form of long term care.

Adding up factors like high premiums, strict underwriting and limited insurers lead to the decline in the number of people getting coverage.

Here are what experts have to say if one should get insurance for long term care.

Jesse Slome, the executive director of the American Association for Long Term Care Insurance said that “it’s not one size fits all.” Affluent consumers probably don’t need to get covered while those who are financially challenged are forced to rely on government programs like Medicaid. Those who are in between can consider ltci as a part of their retirement plan.

Reid Abedeen, a partner in Safeguard Investment Advisory Group suggests discussing this with a financial advisor. According to him, “They need to evaluate everything working together versus just the investments achieving growth.”

Only a handful of people can afford paying for care out-of-the-pocket due to the price hikes of long term care facilities so they turn to getting a long term care policy.

There are other insurance products available such as hybrid policies and life insurance with long term care riders. But if you insist on getting a long term care policy, then here are nine things you can consider:

1.     Explore the best option for you.
2.     Compare insurance products and make you understand the fine print.
3.     Find out if the companies are reliable.
4.     Choose a policy that is affordable.
5.     Don’t let your policy lapse.
6.     Inform your family about your long term care policy.
7.     Apply for insurance for long term care early.
8.     Take advantage of policy features for couples.
9.     Review your long term care coverage yearly.


Visit http://www.altcp.org/expert-help-ltci-quotes to receive expert advice from long term care specialists, ebook and long term care insurance quotes from reputable companies for free.

Thursday, October 29, 2015

Out-of-pocket Costs of Dementia Leads to Bankruptcy

According to a U.S study, families might shell out twice as much if they are taking care of a Dementia patient than a loved one suffering from other conditions or illnesses.

It is hard to believe without numbers so here are the costs that Annals of Internal Medicine published. The study revealed that families of dementia patients paid a total of $61, 552 using their savings compared to $34,068 paid by families taking care of patients with no cognitive condition.

Dr. Amy Kelley, lead author of Icahn School of Medicine at Mount Sinai in New York has something to say regarding this huge chunk of money that people are spending. According to her, "Many costs related to daily care for patients with dementia are not covered by health insurance, and these care needs, including everything from supervision to bathing and feeding, may span several years."

She spearheaded a study that assessed the financial toll dementia takes on families by analyzing out-of-the-pocket and Medicare spending of 1,700 people who are 70 years old and above who died between 2005-2010.

The result was the same as the study conducted by Annals of Internal Medicine. The families paid a total of 287,000 for dementia patients, $175,000 for heart disease, $173,000 for cancer and $197,000 for people who died due to other causes.

With this amount of money, families struggle to keep up with the cost. These studies highlighted the financial burden that end-of-life care for dementia patients that is repeating in multiple generations.

There are other factors why families are losing money by taking care of dementia patients. According to Dr. Mark Lachs, an expert in aging and finances at Weill Cornell Medical College in New York, these families believe that Medicare will cover the long term care expenses. The truth is, it will not.


He recommends getting an insurance for long term care that will help families avoid bankruptcy due to the high cost of end-of-life care of dementia patients.

Visit http://www.altcp.org/costs-ways-to-pay/cost-of-care to know more about the average cost of long term care.

Tuesday, October 27, 2015

ACSIA Partners: Most Americans Cannot Afford Long Term Care

According to ACSIA Partners, a leading long term care insurance policy company, almost all Americans who are 50 years old struggle to cover the high cost of long term care.

But don’t fret because according to ACSIA, there are two ways to overcome this hurdle.

First, you should determine if there is a gap between your ability to pay and as well as your possible expenses in the future.

A gap definitely exists according to a May 2015 report by GAO or U.S Government Accountability Office. According to the report, 52% of households 55 and above have no savings for retirement. Even if you still have some retirement savings, this may not be enough to cover your future long term care needs.

So how can you close the gap?

Denise Gott, CEO of ACSIA Partners recommend getting a rough estimate. You can do this by using the calculator provided by U.S Department of Health and Human Services: http://longtermcare.gov/savings-calculator/.

To give you an idea, here’s a sample calculation of a 52-year-old woman who plans to retire in Florida and can save $300 that earns 4% interest monthly. Her long term care savings gap would be $652, 184 based on the projected care cost in Florida which is $839,263, for life remaining after she turns 65, minus $187,079 in accumulated savings, which is determined by government assumptions and data.

If she is married, then her husband will have the same long term care gap too.

After getting an estimate of the gap, you can now proceed in seeking the help of a certified long term care specialists to help you consider your options. To help you get started, you can receive expert advice here, free ebook and long term care insurance quotes as well: http://www.altcp.org/expert-help-ltci-quotes.

Saturday, October 24, 2015

The Cost of Long Term Care in Five Years Revealed

Long term care is described as a pressing need among seniors nowadays because of the fact that 7 out of 10 of Americans will require this type of care in the future.

It’s a need that people should give importance to since its cost is steadily increasing today. Experts say that location is the main factor why the cost of long term care is becoming more expensive.

Why location?

There are several factors behind this and they are the following: supply and demand of long term care, consumer’s ability to pay for care and the cost of living in a particular state.

So it’s safe to say the cost of care from one city to another varies. As I’ve said earlier, the cost of care is skyrocketing every year and what’s more alarming is the fact that the increase is more rapid than inflation.

Concerned individuals should keep this in mind because this will come in handy when they begin to plan for retirement. Experts actually advice seniors to consider location when exploring their long term care options so as to save money without sacrificing the quality of care.

For your reference regarding the cost of long term care, you can refer to Genworth’s cost of care survey for every stat, which they release every year. The growth rate of long term care services and settings annually and on a five-year period is included.

Please refer to the table below, to find out the average cost of long term care in the United States.





Median
Annual
Five Year Annual Growth
Homemaker Services (Hourly)
$19
$43,472
1.20%
Home Health Aide Services (Hourly)
$20
$45,188
1.32%
Adult Day Health Care (Daily)
$65
$16,900
3.40%
Assisted Living Facility (Monthly)
$3,500
$42,000
4.29%
Nursing Home (Semi-Private Room, Daily)
$212
$77,380
3.91%
Nursing Home (Private Room, Daily)
$240
$87,600
4.19%



Click here to access Genworth’s complete report for 2014 and also to view the cost of long term care in your area.