Not Buying Long-Term Care Insurance Can Be a Costly Mistake

No long-term-care insurance? Uh-oh

You probably don’t need another bill to pay. But skipping this protection could destroy your finances, even long before you’re old, or vaporize your kids’ inheritances.

Read more…

Visit www.californialongtermcare.com for information and assistance with Long Term Care Insurance in California.

This article can be found at http://longtermcareinsurance.org/longtermcareinsurance.html

Will You need Long Term Care?

It’s hard to believe, but the estimated risk for needing Long Term Care continues to climb with each passing year. Now, the Federal government estimates that each individual has a 70% chance of needing Long Term Care in their lifetime. Recent studies reveal that if you are 60 years old you have more than a 60% chance of needing long term care. If you are over 65 years old, your chances of needing care goes up to 70%.

Who Is More At Risk for Needing Long Term Care?

Your age, marital status, gender, lifestyle and, to some extent, your family health history all play a part in the possibility of needing long term care.

According to insurance actuarials, you are more at risk if you:

* are older

* are a woman

* are single

* have a poor diet

* don’t exercise regularly

* smoke

* have a family history of Alzheimer’s, stroke, arthritis, or other degenerative diseases.

* Also, physical activities that can cause severe accidents should be included as a definite risk.

The Long Term Care Cycle

91% of Americans surveyed said they would prefer receiving Long Term Care at home. Indeed, of those needing care only 5% are in Skilled Nursing Facilites.

12% are in Assisted Living Facilities and more than

80% are receiving Home Care

Therefore, it isn’t a surprise that most Long Term Care starts at home with the help of family or friends until the caregiving burden becomes a too much of a hardship. The next step might be to hire a paid caregiver to help with care duties in the home. Yet many people can’t afford such a luxury, even if they hire unskilled, unlicensed, unsupervised “grey market” caregivers. As care needs increase the next care setting of preference is Assisted Living Facilities, as they are more like hotels than the hospital-type setting of a Skilled Nursing Facility. Most people do everything in their power to stay out of nursing homes, which is one reason why the average nursing home stay is only 2.5 years.

While most Americans suspect that they might need long term care “sometime” in the future, many underestimate care costs and falsely assume that Medicare or their health insurance will pay for extended care. They will not. Medicare will only pay for a short time and only under specific, limited circumstances. The only governement agencies that pay for Long Term Care are Medicaid and the Veteran’s Administration. Both are notorious for their lack of care quality and poor quality of life for their residents.

Boomers’ Mindset

Boomers have been raised to expect a decent quality of life and the freedom to make their own choices. They cherish independence, pleasure and, as they have matured, the joys of family and friends.

As a generation, Boomers were not raised to expect or shoulder sacrifice, although they can and do rise to the occasion. For most, the mere thought of a loved one enduring the extraordinary burden and sacrifice of day-to-day caregiving is enough to motivate Boomers to protect themselves and their families.

The value of Long Term Care insurance is that it:

1) supports independence by providing the ability to pay for Home Care and Assisted Living costs. It give people choices.

2) protects loved ones from the burdens of caregiving.

Long Term Care insurance should be called “nursing home and family caregiving prevention insurance”, and for these benefits alone it is worth its price.

Either having LTC insurance or paying for care costs out-of-pocket allows you to choose where to receive care, even when caregiving needs increase. However, Long Term Care insurance is less expensive in the long-run.

When Should I Buy Long Term Care Insurance?

The sooner the better! LTC insurance premiums go up in price as you get older, although once you buy a policy your premiums do not rise due to aging or health. For years, financial planners were telling their clients to wait until age 65, but this is no longer considered sound advice. The Federal and State Partnership Programs encourage people to buy as early as age 40, mostly to increase the financial security of the programs, but also to ensure that people do not become a burden on Welfare/Medicaid if they get sick or injured at an early age and need long term care.

If you can afford the premium for years to come, buy now to protect yourself and your family.

Visit me at www.californialongtermcare.com for information and assistance with Long Term Care Insurance in California.

The Internal Revenue Service (IRS) has just announced the increased deductibility levels for long-term care insurance policies purchased in 2010.

First, the maximum deductible limit for an individual now exceeds $4,000.  That should get some people’s attention – even though few individuals qualify for the personal deduction.  Second, the levels were increased for 2010.  Pension contribution limits for 2010 were NOT increased.

Here are the 2010 limits:

Attained Age Before Close of Taxable Year

Age 40 or less:  $ 330

More than 40 but not more than 50:      $ 620

More than 50 but not more than 60:  $1,230

More than 60 but not more than 70:  $3,290

More than 70:  $4,110

The per-diem limitation under 7702(d)(4) for calendar year 2010 is $290.

Visit www.californialongtermcare.com for assistance with long term care insurance in California.

Baby Boomers and Aging Parents – Six Tips to Prepare For Their Care

By Katie B. Marsh

Although there is some debate over the exact age range of the Baby Boom generation, the US Census Bureau identifies most Boomers as those who were born between the years 1956 to 1965. In any case, whether you were born within that time frame or fairly close to it, chances are you are beginning to deal with end-of-life issues regarding your elderly parents. Your many considerations run the gamut from the practical to the spiritual and everything in between. So, where do you begin?

Caregivers. Imagine if we ended our lives as babies, completely dependent on a caregiver tending to all of our needs: loving us, feeding us, changing our diapers. Imagine now that we are not as cute as little babies but still have the same need to be cared for gently with love and respect. Who would you want to take care of you in this situation? Who do your parents want to care for them? This question should be posed directly to your parents. Don’t assume you know the answer. What they may have said 10 to 15 years ago may not still hold true today as they are closer to facing their mortality.

Finances. As we know, in our society it’s considered impolite to ask someone about their finances. Many adult children hesitate to inquire about the exact state of their parents’ finances for fear that their parents will think that the real questions is about potential future inheritance money. But it’s extremely important to have an honest discussion about finances at this point in life. First of all, you need to know if your parents have long-term care insurance. This is the only type of insurance that pays for future assistance that may be needed in the performance of activities of daily living. And, as the name implies, it helps cover the cost of long-term care usually for an undetermined length of time. Long-term care insurance combined with your parents’ net worth, any financial assistance from family, and personal preferences will all factor in to determining where and how your parents live out their final years.

Memoirs. The written word is a way for us to live on beyond this lifetime. Encourage your parents to share their unique stories on paper. My great grandfather actually typed his life story and had it bound in leather and embossed in gold leaf. My brother, sister, and I cherish it and each wish we had our own copy.

Legal Instruments. A living trust is a very important instrument for any family with assets to bequeath. Its main purpose is to avoid probate. Much of a family’s estate can be lost through probate; setting up a living trust is a way to prevent such a loss. It is best to hire an attorney to set up a living trust tailored to your family’s specific needs.

The next consideration is to find out to whom your parents have given or intended to give power of attorney. Power of attorney assigns power to an individual to act on your behalf to handle all of your legal and business matters in the event that you are unable to do this for yourself.

Lastly, an advance directive is a legal instrument prepared in advance by an individual. It gives health care instructions to your care providers in the event you are unable to conduct such matters on your own. A living will, power of attorney, health care proxy, and Five Wishes are all forms of an advance directive.

Possessions. A Last Will and Testament is the instrument to be prepared by your parents to assign care for their dependents, if any. This can include pets as well. Also, this is the legal mechanism through which they can identify one or more persons to manage their estate and provide instructions for the distribution of their personal possessions. This includes everything from real estate and expensive jewelry to the simplest sentimental items. Funeral and burial instructions can also be outlined here. Although this is a legal document, completing one can give great comfort to your parents, giving them control and certainty over one aspect of their lives.

Final Messages. Encourage your parents to write letters to each of their children if they feel comfortable doing so. Some families even make audio or video recordings of their elders. It can be about anything – a full life story, funny anecdotes, family stories, or loving good-byes to each of their children. My husband’s grandmother came to this country from Armenia and she recounted her tumultuous life on CD. He cherishes it and plans to share it with our children when they are older.

Your parents are entering a time of life where many people feel particularly vulnerable. This can be especially difficult for parents who are used to being in charge and may not be comfortable at all with the reversal of roles. Please keep that in mind as you gather information from them and help them create a plan for the future. If done tactfully and respectfully, this time of life can bring you closer to your parents than ever before.

Katie B. Marsh is co-author of The Birth of Dying: A Sensitive Workbook to Help You Broach and Explore End-of-Life Issues with Your Terminally Ill or Elderly Loved One http://BooksForSharing.com/

(c) Copyright – Katie B. Marsh. All Rights Reserved Worldwide.

Article Source: http://EzineArticles.com/?expert=Katie_B._Marsh

Visit www.californialongtermcare.com for information and assistance with long term care insurance in California.

From LongTermCareInsurance.Org

Most Long Term Care policy decisions revolve around Setting of Care, Benefit and Elimination Periods and, if you wisely want it and can afford it, Inflation Protection. While every policy is different ( and you should thoroughly understand all the wording ) the most common decisions are found below:

Where Might You Need Long Term Care?

Facility Only – Covers care received in a licensed Assisted Living or Skilled Nursing Facility, but not for care received in your home or in non-licensed care settings.

100% Integrated Home Care – Covers care received both in a licensed Assisted Living or Skilled Nursing Facility, plus non-licensed settings and home care.

How Much Will You Need?

Maximum Daily Benefit can be from $50 – $400
How will your Long Term Care insurance policy to pay out per day? This can also be paid in weekly amounts.

Benefit Period choices: Can be 2, 3, 4, 5 or Unlimited years
How long will your policy pay for your Long Term Care?

Elimination Period: Can be for 0, 20, 30, 60, 90 or 100+ days
How long can you afford to wait before your LTCi policy starts to pay? Longer elimination period = lower premium, but if you choose a longer elimination period, make sure you have the savings or assets to cover that period of care.

Inflation Protection: 5% Annually Compounded or 5% Simple inflation
Increases the dollar value of your benefit each policy year. 5% Compounded is recommended for people under 70 years of age in order to keep up with the 6% inflation that is currently being experienced in the health care sector. Many individuals age 70-80 choose 5% Simple and most people over 80 choose not to pay for an Inflation Rider, as it might not be needed.

Inflation Riders increase the premium price considerably for regular LTCi policies, but considering the rate of inflation, not buying one at a younger age is risky.

Original Content: http://longtermcareinsurance.org/longtermcareinsurance.html#gpm1_3

Visit www.californialongtermcare.com if you have any questions, or need help with a Long Term Care Insurance policy in California.