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See what Insurance Solutions can do for you - Kathleen Graberg

Don't let the unexpected happen
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Let us help you make appropriate plans for long term care to ensure you are looked after at all times.

LONG TERM CARE

Unlike traditional health insurance, long-term care insurance is designed to cover long-term services and supports, including personal and custodial care in a variety of settings such as your home, a community organization, or other facility.

Long-term care insurance policies reimburse policyholders a daily amount (up to a pre-selected limit) for services to assist them with activities of daily living such as bathing, dressing, or eating.  You can select a range of care options and benefits that allow you to get the services you need, where you need them.

The cost of your long-term care policy is based on:

  • How old you are when you buy the policy
  • The maximum amount that a policy will pay per day
  • The maximum number of days (years) that a policy will pay
  • The maximum amount per day times the number of days determines the lifetime maximum amount that the policy will pay.
  • Any optional benefits you choose, such as benefits that increase with inflation

If you are in poor health or already receiving long-term care services, you may not qualify for long-term care insurance as most individual policies require medical underwriting. In some cases, you may be able to buy a limited amount of coverage, or coverage at a higher “non-standard” rate.  Some group policies do not require underwriting.

5 Things You Should Know

It's important You Are Well Informed With A Professional Before You Purchase .. Let Us Help You

Traditional Policies Have Fewer Plans

You May Not Want Insurance But You Need A Plan

Why You Need More Than Old School Policies

There's A New Insurance In Town

Smart Shopping With Guidance Pays Off

Long Term Care

By the time you reach 65, chances are about 50-50 that you’ll require paid long-term care (LTC) someday. If you pay out of pocket, you’ll spend $140,000 on average. Yet you probably haven’t planned for that financial risk. Only 7.2 million or so Americans have LTC insurance, which covers many of the costs of a nursing home, assisted living or in-home care — expenses that aren’t covered by Medicare. Long-term care is the unsolved problem for so many people.

1. Traditional policies have less to offer

For years, long-term care insurance entailed paying an annual premium in return for financial assistance if you ever needed help with day-to-day activities such as bathing, dressing and eating meals. Typical terms today include a daily benefit of $170 for nursing home coverage, a waiting period of about three months before insurance kicks in and a maximum of three years’ worth of coverage.

But these stand-alone LTC policies have had a troubled history of premium spikes and insurer losses, thanks in part to faulty forecasts by insurers of the amount of care they’d be on the hook for.

2. You might not want insurance  …  but you need a plan

Premiums for LTC policies average $2,700 a year, according to the industry research firm LifePlans. That puts the coverage out of reach for many Americans. (One bright spot for spouses: Discounts for couples are common —  typically 30 percent off the price of policies bought separately.) If your assets are few, you may eventually be able to cover LTC costs via Medicaid, available only if you’re impoverished; if you have lots of money saved, you likely can pay for future care out of pocket. But weigh factors other than cash: Do you have home equity you could tap? Nearby children who can be counted on to pitch in? Or do you have a family history of dementia that puts you at higher risk of needing care?

If you’re pulling less than 4 percent out of your savings each year for living expenses, you may be comfortable going without insurance, Benz says. In that case, though, you’ll need to plan for that possible expense. That means saving more than you may have planned, and segregating your LTC kitty from the portfolio you tap for everyday income.

3. There’s a new insurance in town

As traditional LTC insurance sputters, another policy is taking off: whole life insurance that you can draw from for long-term care. Unlike the older variety of LTC insurance, these “hybrid” policies will return money to your heirs even if you don’t end up needing long-term care. You don’t run traditional policies’ risk of a rate hike, because you lock in your premium upfront. If you’re older or have health problems, you may be more likely to qualify.

4. But old-school policies are cheaper

If all you want is cost-effective coverage — even if that means nothing back if you never need help — traditional LTC insurance has the edge. “Hybrid policies are usually two to three times more expensive than traditional insurance for the same long-term care benefits. With hybrids, you’re paying extra just for the guarantee of getting money back.

A hybrid policy may make the most sense if your alternative is to use your savings, or you have another whole life policy with a large cash value. You can roll over an existing life insurance policy or annuity, and that’s a huge part of the business.

5. Speed and smart shopping pay off

If you want insurance, start looking in your 50s or early 60s, before premiums rise sharply or worsening health rules out robust coverage. Every year you delay, it will be more expensive. Initial premiums at age 65, for example, are 8 to 10 percent higher than those for new customers who are 64.

As for where to shop? This is where Insurance Solutions can help you through this complicated battlefield. As an independent agent who sells policies from multiple companies rather than a single insurer. For extra expertise and a wider choice of policies, We are able to sell what are known as long-term care partnership policies — part of a national program that has continuing education requirements for insurance professionals. Don't Delay Contact us today.

LET US GET THE RIGHT PLAN FOR YOU

With so many options available it's important you have the right guide to help you choose the best plans for you and your family.