Plan While You’re Still Young

Seniors who have been plagued with serious illness and/or disability that turn them invalid share the same regret, “I should have planned for my health while I was young.” This is true as most people procrastinate about their health, foreseeing their paychecks and savings will help them from any undesirable health condition in the future

My 64-year-old aunt, Mary, is no exception. She once owned a retail store in Loris, South Carolina where she got her living to raise the twins. The business went successful that compelled her to hire more staffs and opened a new stall in Ellis. Unfortunately, she and her husband have experienced series of health threats since the summer of 2007; they have attributed these illnesses as result of their busyness and dreadful lifestyle.  She was positive of stage 3 breast cancer, while Nori, her husband, was diagnosed with multiple sclerosis and pneumonia. After learning about the serious illness, she immediately used her savings to undergo treatments and operation. In fact, she has spent more than half of the savings for her and Nori’s treatments which compelled them to close their already declining business and sell properties. Both Mary and Nori are off with home chores and other stressful activities so they need to pay for a caregiver. Aunt Mary uttered, “I should’ve given priority to health than working for money.”

Aunt Mary’s struggle with illness is the same with millions of people –clinging to stark hope amidst the suffering from painful life situation. Though courage and hopefulness are our natural response to an inescapable event, the greatest way we can face the scoundrels of life starts with planning and preparation. Younger people today rest on temporary investments, like cars, real estates, properties, jewelry, and etc., unknowing that those could lead them to debt and hamper them from saving for their health. Very few individuals regard health as their utmost priority, and realise this mistake only when their close to the hospital beds, pinned with syringe and flogged with steroids.

 

Millionaires can sustain the high costs of care, and the poor can ask for government support. The large percentage of the working middle-class often bears the callouses of the country’s health care system.

 

Health and Human Services Secretary Kathleen Sebelius warned  the Senate members that the projected number of Americans with long term care needs will hike up to 15 million by 2020. And, unfortunately, only 3 percent have long term care policy, she stressed.

Long term Care Insurance Claims

There are two events that trigger long term care insurance claims: severe cognitive impairment and inability of doing activities of daily living (ADLs).

Inability of Doing Activities of Daily Living – These activities refer to basic tasks such as eating, walking, dressing, toileting, etc.

You can differentiate a respectable insurer from a mediocre one if the former covers two or more of these activities of daily living. Do not accept policies that ignore ADLs for home care and assisted living.

Severe Cognitive Impairment—this happens when a person lost his or her mental functions such as reasoning, thinking, concentration, and etc. This can worsen as the person ages. In order to trigger claims, the cognitive impairment must be severe and requires assessment.

Filing a Claim

The claimant must provide requirements from three sources: the policyholder, the provider, and the doctor. The information from the three sources must be true and accurate to prevent denial and deferral.

What to do when claim is denied?

This is one of the reasons why people are afraid to secure an LTCi policy. There have been news on denials of claims by some insurance companies—both prestigious and start-up.

 

The sad truth is—although long term care insurance has been around since the 90’s—many underwriters are less experienced in estimating the rates of facilities. When insurers find out the costs are extremely expensive they deny claims and start increasing the prices of policies.

 

However, following the guidelines and providing honest data during the assessment lessen the likelihood of denial. Likewise, many states have implemented law that penalizes any insurance company for irresponsible denial of claims and fraud.

 

An attorney may help protect your rights against a bad insurance company. However, find an attorney that specializes in insurance or litigation because they know the corresponding law surrounding claims-related issues.

 

The state’s insurance commissioner may help resolve any glaring problems with an insurer. The insurance commissioner’s job is to supervise all insurance companies and investigate on fraud and legitimacy of the business.

Top Three Risks of Long Term Care Insurance and How to Avoid Them

Asked if long term care insurance is a valuable product, many Americans would simply shrug their shoulders and sigh in anticipation as they cannot imagine themselves paying the hefty monthly premiums that could soar higher than their paychecks. Most of them thought there are so many risks associated with this type of insurance and it’s always practical to self-insure and rely on Social Security checks or Medicare for their long-term care needs. There may be risks but they can be prevented through proper planning and understanding of this product.

1. Overpayment

What if you pay more than what you need? That really sounds upsetting for someone who wishes to save on his or her premiums. A person should buy depending on his/her health condition and financial capacity. The two must jive together.

Some policyholders overpay because they try to insure everything—from custodial care to medical treatments—without contemplating if their budget can cover each need. Insuring every possible scenario is imprudent because they could wind up your savings; preparing to self-insure unexpected events can deliberately slash your premiums down to a quarter or half. Buying at least three-year policy and cutting the daily benefits up to, for example, $100 can significantly reduce the costs. Many LTCi policies extend coverage for untapped daily benefits and most claims are done on the third year that’s why three-year policies are already enough to keep up the expenses and sustain one’s health needs.

2.  Premiums are increasing

Many companies are coming up with deceiving promotion which says “Younger policyholders are ensured with low cost and locked-in premiums.” However, that is plain enticing yet dangerous. The truth is insurers cannot foresee when they are going to increase rates and, of course, they won’t tell you. No matter how young you are when you first bought the policy, you are more vulnerable to price hikes though the insurers keep encouraging you they won’t. Companies cannot raise the rates of individual policies but they can manipulate business policies.

3. Denied Claims

Some insurers do the worst thing to amass large profits and minimize the benefit payment, while taking advantage of their sick or frail clients, anticipating that those people won’t fight for their rights. These companies intentionally make the process of benefit payment more cumbersome so policyholders, particularly the sick and frail, to quit.

 

The cases of LTCi claims denial are increasing in every state. To prevent this, make sure you understand the entire policy that discusses the sum of coverage and the things that can keep you off from qualifying for claims. Take time to assess the facilities plus the services covered by your insurer, and the rules on long term care insurance claims. Also, keep those information known to an immediate family member or loved one so somebody can fight for your rights when you can no longer stand for your own.

Long Term Care Insurance Explained

Hi guys! I’d like to share this video that explains the basics of long-term care insurance (LTCi) for you to understand why you need to plan for your future health care.

The  U.S. Census Bureau reported that there will be more than 70 million Americans of the age 65 or older by the year 2030. Isn’t that a warning that people should take into consideration? Yes, it is since the long term care costs in the country have hit its highest and these rates could climb as the demand for LTC is drastic.

Unfortunately, no matter how people wish they would receive modest medical assistance, Medicare and Medicaid wont meet halfway with their overall LTC expenses. And what’s worse is self-insuring that can blow away your savings in a snap!

Long term care insurance is the product addressed to solve this problem. The policies cover almost all types of care including personal and custodial, and various facilities. The coverage on activities of daily living (ADL) may include:

• bathing
• continence
• dressing
• eating
• toileting
• transferring

The LTCI policy must be guaranteed renewable and does not come with a fixed premium. Moreover, there are other features that can be added in the policy but these are not compulsory. Some of important riders are:

• Non-forfeiture — this protects your policy’s value even if you decided to drop the policy or stop paying the premiums
• Inflation protection — it increases your policy at certain percentage so it can keep with the rising costs of LTC
• Waiver of premium — this allows you to stop paying premiums the moment you are receiving the benefits