Long Term Care Plans

Long term care insurance can protect your retirement savings, allow you to receive care at home, and ease the burden on your family members. With costs rising for nursing home care, assisted living facilities, and in-home care providers, a few short years of needing long-term care services can wipe out a life time of savings.

As a part of your financial planning process, it’s important to understand the potential impact that needing long-term care may have on your assets, your family, and you future. There are a number of long term care plans available from a number of carriers with even more products. When it comes to determining which long term care plan is right for you it is important to work with an independent, knowledgeable advisor about the benefits, options, and types of plans available. The following information will allow you to determine what is important to you and your long term care goals in order to develop a long term care plan that is most appropriate for your situation.

Step One: Make your choices

This allows you to structure an insurance plan that fits your needs and your budget.

  • Choose a daily or monthly benefit amount: $100 or more per day.
  • Choose an elimination period (or waiting period): 30 days, 60 days, 90 days, 180 days, or 360 days.
  • Choose how long you would like to receive benefits: from 2 year to and unlimited or lifetime benefit.

Step Two: Determine your maximum benefit amount

This is the total amount of dollars available to you under your policy.

Multiply the daily benefit amount times the benefit multiplier times 365 days. For example, $100 (daily benefit amount) x 5 years (benefit multiplier) x 365 (days per year) = $182,500 (maximum benefit amount).

Your policy will not have a maximum benefit amount if you select the unlimited (lifetime) benefit multiplier.

Step Three: Choose your optional benefits

This allows you to add benefits to your insurance plan that will enhance your coverage.

Inflation Protection: Increases your daily benefit amount to keep pace with the rising cost of long-term care services. You have the choice of four options.

These increases in benefits will not be determined by the actual amount of future inflation. The actual increases in benefits under your policy may be greater or less than the amount of inflation:

  • Guaranteed purchase option (GPO): As long as you are not receiving benefits, you have the option to increase your original daily benefit amount and maximum benefit amount typically by 10 percent every two or three years until age 80, or for a maximum of 20 years, whichever occurs first. Each time you exercise this option, your premium will increase based on your current age.

You may decline the offer to increase coverage any time it is made. Once you have declined this offer two consecutive times, the benefit terminates and no further offers will be made.

  • Simple Interest: Automatically increases your original daily benefit amount and maximum benefit amount by the chosen percentage (typically 3% or 5%) each year.
  • Compound Interest: Automatically increases your current daily benefit amount and maximum benefit amount by the chose percentage (typically 3% or 5%) each year, similar to compound interest in a bank.

Premium Payment: Your premium can be paid on a regular basis throughout the life of the policy. Or two additional options are available that allow you to pay premiums for a set period of time, after which no further premiums are due. These additional options include:

  • 10-year premium payment option:* Allows you to pay premiums for 10 years.
  • To-age-65 premium payment option:* Allows you to pay premiums until you reach the age of 65.

Nonforfeiture Benefit: Should you stop paying premiums after your policy has been in effect for ten years or longer, this option provides that your policy will not terminate but will continue with a reduced maximum benefit amount. The maximum benefit amount will be the greater of one hundred percent of the sum of all premiums paid or ninety times your Nursing Facility Maximum Daily Benefit in effect at the time of lapse.

Spouse Waiver of Premium and Survivorship Benefit: Adding this optional benefit to your insurance plan and to the same policy form for your spouse’s insurance plan means that when one spouse’s premium is waived, the premium for the other spouse also is waived. It also means that if one spouse dies after both policies having this benefit have been in effect for 10 years, no further premiums are due from the surviving spouse.

Making the Right Choices

You have lots of things to consider when it comes to designing long-term care insurance that’s right for you. A Long Term Care Insurance professional can help you evaluate your situation and tailor coverage to meet your needs. These are some of the choices you have:

Daily or Monthly benefit amount: The maximum dollar amount your policy will reimburse each day or month. You have a range of dollar amounts from which to choose.

Elimination period: The period of time you will wait before you begin receiving benefits. You can choose to receive benefits immediately or after a waiting period of up to 90 days.

Benefit multiplier: A time period used to calculate your maximum benefit amount. It is not intended to represent the time for which benefits will be reimbursable.

Maximum benefit amount: The total amount of benefits you are entitled to receive over the life of your policy. To determine the maximum benefit amount, multiply your daily benefit amount times the benefit multiplier times 365 days.

We are committed to making the acquisition of long term care insurance as simple as possible. Our focus is based on your needs, and designing a plan that not only satisfies your needs, but fits your budget. Request a complimentary long term care insurance quote or contact us at (877) 579-9574 to speak with a long term care insurance professional.

Long Term Care Insurance Basics

What is long term care insurance?

Long term care insurance is an economical way to help you protect your assets — and your loved ones — against the high cost of long term care. It will give you the control and security to help cover the cost of long-term care services and the independence to choose where to receive care.

Individuals and Families should consider Long Term Care Insurance if they want to:

  • Protect retirement assets and savings
  • Be proactive and responsible for reducing or eliminating the burden of care and assistance from family members
  • Maintain independence and control to choose where to receive long term care

Long term care insurance provides personal care, homemaker services, skilled nursing care, and physical therapy. Care can be provided at your home, adult family homes, assisted living facilities, and nursing homes. Depending on your long term care insurance policy and condition, varying amounts of care can take place in a variety of locations, and can range from a few hours per week at home to round-the-clock care in a nursing home.

Why do people buy long term care insurance?

According to The America’s Health Insurance Plans, 2007 National Survey, states people purchase long term care insurance for the following reasons:

  1. Minimize their financial exposure and take responsibility for protecting their assets
  2. Avoid being a burden on loved ones
  3. Enhance their choices and independence – to receive care in the setting they prefer

Who needs long term care insurance?

Most families benefit from the protection a long term care insurance policy offers. It is the most cost effective way to protect you and your family from the high cost of long term care. It allows you and your family to secure savings and your family’s future.

It is difficult to know if and when you will require long-term care. Various studies provide us with statistics on why people need long term care insurance:

  • The lifetime probability of becoming disabled in a minimum of two activities of daily living or of being cognitively impaired is 68% for people age 65 and older.1
  • By 2050, the number of people using paid long-term care services in any setting (e.g., at home, residential care such as assisted living or skilled nursing facilities) will likely double from the 13 million using services in 2000, to 27 million people. This estimate is influenced by growth in the population of older people in need of care.2
  • In 2002, the percentage of older persons with moderate or severe memory impairment ranged from about 5% among persons aged 65-69 to about 32% among persons aged 85 or older.3

1 AARP. Beyond 50.2003: A Report to the Nation on Independent Living and Disability, 2003,  (11 Jan 2005).
2 U.S. Department of Health and Human Services, and U.S. Department of Labor. The future supply of long-term care workers in relation to the aging baby boom generation: Report to Congress. Washington, DC: Office of the Assistant Secretary for Planning and Evaluation, (2003). <http:aspe.hhs.gov/daltcp/reports/ltcwork.htm> (20 Jan 2005)
3 Federal Interagency Forum on Aging-Related Statistics. Older Americans 2004: Key indicators of well-being, Federal Interagency Forum on Aging-Related Statistics. Washington, DC: U.S. Government Printing Office, 2004.

When should you buy long term care insurance?

  1. The cost of long term care insurance is based on your age and health when you apply. The younger and healthier you are when the policy is issued, the more affordable your long term care insurance policy will be.
  2. The long term care insurance coverage a person buys for their future will also help protect them today. If an accident or illness occurred today (e.g. stroke, heart attack, serious illness), which required you to need long term care, owning a long term care insurance policy would provide benefits to pay for some or all the cost of long term care.

By being proactive in your 40s and 50s and purchasing long term care insurance, you can reduce the uncertainty of later years and maintain control over important long term care decisions, your assets, and your family’s future.

Are you already covered?

Many individuals mistakenly believe their long term care needs are already covered. However, long term care assistance is not usually paid for by health or disability insurance. In addition, government programs like Medicare and Medicaid do not cover long term care costs over long periods of time.

How would you pay for long term care if the need arose?

Medicare is a federal program that provides hospital and medical insurance to individuals age 65 or older, along with certain ill or disabled individuals. Home health care benefits are only available under certain conditions.

In general, Medicare might pay up to 100 days of care in a skilled nursing facility per benefit period – 100% for the first 20 days. From days 21-100 Medicare requires a co-payment. Benefits only become available after a three day hospital stay, if skilled care is needed.

Medicaid coverage is predominantly based on income and assets, and in a majority of states typically only covers care received in approved nursing homes. In states where Medicaid does cover home based long term care expenses, it is done on a restricted basis.

Personal income and assets, including your home, are frequently used to cover long term care costs, which can have a significant impact on savings.

Family members often assume the burden of care, and in some cases the financial responsibilities of providing care. Over time this can have a significant impact on their lifestyle, personal and work commitments, and physical and emotional well-being.

Long term care insurance allows individuals to be confident about their future by providing them with resources today to maintain choice, control, and independence later on in life. It is a cost effective way for individuals to take responsibility for their health and long term care decisions. In addition, it will assist in securing your family’s future and your own quality of life by protecting retirement savings.

Is long term care insurance right for you?

You should CONSIDER buying Long-Term Care Insurance if:

  • You have significant assets and income
  • You want to protect some of your assets and income
  • You want to pay for your own care
  • You want to stay independent of the support of others

You should NOT buy Long-Term Care Insurance if:

  • You can’t afford the premiums
  • You have limited assets
  • Your only source of income is a Social Security benefit or Supplemental Security Income (SSI)
  • You often have trouble paying for utilities, food, medicine, or other important needs

What does long term care insurance cover?

Long term care insurance assists in paying for care services when you need help with normal daily activities, such as eating, bathing, and moving around – activities most of us take for granted. Long term care insurance also provides supervision as a result of cognitive impairments, such as Alzheimer’s disease. A long term care insurance policy provides different types of care in a variety of scenarios:

  • Skilled care includes nursing care and physical, occupational, respiratory, and speech therapy from licensed professionals that may or may not be needed on a daily basis.
  • Custodial care is the most commonly used type of care. It includes help with day-to-day activities such as eating, bathing, and dressing.

How much coverage do I need?

It is important to take the following into consideration when choosing your coverage options:

Level of Assets You Want to Protect

Long term care insurance should be a consideration in your overall retirement planning. Needs, resources, and situations differ, a Long Term Care Insure professional advisor will guide you through your long term care insurance options to implement the coverage that is right for you.

Current Cost of Care Where You Live or Plan to Retire

The cost of care varies by state and by region. Whether you plan to move to a warmer client or closer to loved ones when you retire, where you end up is an important factor in deciding what amount of coverage you will need. Our interactive Cost of Care map will help you estimate your needs.

Length of Time You’d Like Coverage

People need long term care assistance for an average of three years, according to the Boston College Center for Retirement Research.* It is important to take into consideration your health and family history of illness (e.g. a prolonged illness or Alzheimer’s disease) that may require long term care for a shorter a longer period of time.

Inflation Protection

Inflation protection is an important piece of long term care planning. It is important that your benefits keep pace with the increasing cost of care. Assuming 5% inflation over the next 15-years, the benefit required to cover your long term care costs will have more than doubled.

*Center for Retirement Research at Boston College, “How Can We Improve Long-Term Care Financing,” June 2008.

Get your No hassle Long Term Care Insurance Quote

Long Term Care Insurance

If you are like most people, you have insurance on your house, your car and other items of value. But, you may have overlooked protecting your retirement savings. Long-term care insurance is an economical way to help you protect your assets — and your loved ones — against the high cost of long-term care.

Meeting Your Unique Long Term Care Insurance Needs

We offer flexible solutions for every stage of life. Whether your single, married, or divorced our licensed professional advisors are here to design an affordable plan that meets your insurance needs and budget. The long term care companies and products we utilize have numerous options to help protect your savings from the high cost of long term care. It is a cost effective way for you to take responsibility for your health and long term care decisions.

Over time, your needs may change and our goal is to help ensure your coverage keeps up with all of life’s challenges, and keep up with the changes in both your life and your lifestyle.

Save Money by Comparing Multiple Long Term Care Insurance Quotes

Request long term care insurance quotes and get an objective, side-by-side comparison of the major insurance companies based on your unique situation. Important features and benefits of the policy are highlighted and presented in an objective, user-friendly format, saving you valuable time and money. Our goal is to simplify the long term care insurance buying process to ensure you are getting the absolute best value.

Save Time With Our Easy Application Process

Long term care insurance policies are the same whether you go directly to an insurance carrier or whether you have an experienced knowledgeable licensed professional advisor do the work for you. There are very big differences between long term care insurance policies and the insurance carriers that sell them.

Every long term care insurance policy from any insurance company can be very different. If you just buy the lowest price it could be like throwing your money out the window. You need to know the differences between an inexpensive long term care insurance policy with solid benefits and one that makes it very unlikely to pay benefits at all.

We provide you with accurate, unbiased long term care insurance support so you can select the long term care insurance plan that is best for you. Your questions are promptly answered by specialists who understand your long term care insurance needs. Once you have selected your long term care insurance plan, applying through Long Term Care Insure is quick and easy! Have an application mailed/emailed/faxed to you for a quick turn around and let us take care of the paperwork and all communication with the long term care insurance company. Our job is to make obtaining a policy as easy as possible by being available when you need us.