When your parents need long term care

Had not been of your parents, you would not set foot on where you are today. Your parents have played a crucial role in your life and, even if they age, they are still the same individuals they’ve been before. While your aging parents might want to live independently, you want them feel loved and cared by running errands and financing their health care needs.

 

Long term care is something that parents and children must be addressed before it hits them. Deciding about the living arrangement and care options is important to prepare for future health needs and make everything run smoothly. The living arrangement—whether they want to live independently or near you—must be decided by the two parties, so both could adjust to each other’s wants.

 

The reality about long-term care is it can be expensive and the duration is uncertain. How long will your parents need long term care is ambiguous question that nobody could answer. But one’s thing for sure—long term care costs can make you go broke! Wherever state you live, expect the costs are always high.

 

Any time, your parents may decide to self-insure. But this can be done with some limitations—if they have huge savings and assets and they need less medical treatments and personal care. Nevertheless, if they need frequent trips to the doctor and require 24/7 assistance then it can literally exhaust all the family’s savings in a snap; and, worse, you will be compelled to pay the bills.

 

Now, here’s long term care insurance to the rescue! this type of insurance has been around the market for years, but, unfortunately, very few people consider this option.

 

With the minimum benefit amount, you can already have your parent/s insured. A policy can pay both medical and personal care in any facility where your parents wish to stay. This can also make their dream of having ultimate independence even when they age possible.

 

Is long term care insurance the only solution?

Probably you are wondering, “Hey, is long term care insurance the only option left?” A lot of people arrive to that conclusion that long term care insurance won’t work for them, and buying one will only push them to financial setbacks.

 

I’m aware of the misconceptions people set on fire as they talk about long term care insurance. However, there are couple of reasons why long term care insurance—not only—but the best solution when preparing for your care.

 

Government Medical Programs Wont Give You Security

Many Americans rely on government programs like Medicare and Medicaid, hoping that they would get as much as they need for their future health needs. Unfortunately, government programs just 16% or less of long term care in the country. Medicare covers hospital stay or home care for very limited services and days. Medicaid, on the other hand, has strict qualification policies for people with less than $2000 in assets and income will be entertained. The Veterans Administration covers nursing home care for veterans who have disability related to their job.

 

Health and Life Insurance Will Not Compensate LTC Costs

Both health and life insurance are not designed for long term care, so you wont be able to use them to pay for nursing home or assisted living. However, you could use the accrued cash from your life insurance when you no longer need the coverage to purchase an LTCI rider as addition to your current policy.

Some companies today are coming up with policies that will cover both life and long term care

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

Long Term Care Insurance is Better than Home Care and Self-Insurance

Most individuals today share the same thought with regard to long term care: sticking to home care and self-insuring are the best way to cope with it. Though the number of traditional care supporters is still high, the staggering economy and failing health care programs do not give verdict to sustain the needs of the elderly and the invalid.

 

LTC Financial Partners President Craig Smith challenged the public with the question “If one of your aging parents suddenly needs help with the tasks of daily living, who will provide it? You?” Long term care services are not free, and they always come with high price tag, he reminded. LTCP is considered one of the leading insurance agencies in the country with undeterred know-how in the industry.

 

Smith argued that home care or do-it-yourself caregiving could slash almost half of the expenditures; this may sound cheap but the overall costs that can be accrued from medications and home-care treatments may exceed one’s expected expenses. He also said that a long term care insurance policy, which pays 30-year premiums, could be less expensive than self-insuring and DIY caregiving.

 

 

Smith’s response to these questions did not come merely from his own speculations, but it is centered on the results of MetLife’s study “The MetLife Study of Caregiving Costs to Working Caregivers: Double Jeopardy for Baby Boomers Caring for Their Parents.” According to the study, each caregiver may earn $304,000, and only a fraction of this income may go to LTCi.

 

The U.S. Department of Health and Human Services’ report has a relevant support to Smith’s claim which reveals that large number of Americans over 65 or 70 percent of the population will need long term care. Smith reiterated that people should not be discouraged with LTCi’s premiums because they are less expensive than they think they would get from self-insuring.

 

Even Celebrities Have Long-Term Care Needs

We’ve heard a lot of rumors circulating all over the Internet about these celebrities who have insured a part of their bodies (which sounds crazy for us ordinary people) to maintain their good looks in front or behind the camera or simply get what they paid off for a revamp. What we’re they thinking, huh?! Is this something celebrities should be more concerned about?

Did you know the most expensive legs are donned by Mariah Carey? Seriously, she has insured it worth $1 billion in case her legs become severely scarred or marred with varicose veins. Rihanna is said to be the second celebrity with the most expensive legs.

Jennifer Lopez, who has the most perfectly-shaped buttocks, was rumored to have $27 million insurance for her booty. The singer-actress then denied the allegations

Victoria Secret’s angels and Playboy playmates are not the ones with the most expensive breasts; singer-songwriter, Dolly Parton, owns them with a policy of $300,000 for each.

Some of the unbelievable insurance was purchased by celebrities:  Tom Jones, chest hairs worth $7 million; David Lee Roth, sperm, for 1 million; Bruce Springsteen, vocal cords, for $6 million, and a lot more..

However, while some celebrities made a ridiculous decision to insure their body parts, there are celebrities and famous people who don’t just need a policy to gild their appearance but to insure them from serious health threats. This means long term care may happen to anyone regardless of his or her social status.

Montell Williams, known for long-running “The Montel Williams Show,” was diagnosed with multiple sclerosis at the age of 42. He also founded a multiple sclerosis foundation. Williams shared that he has experienced pain throughout his knees down to his feet, 24 hours a day, for 10 years. He also admitted that the emotional struggles made the physical pain even worse.

 

Christopher Reeve played Superman during the 90’s, but the hunk actor became paralyzed after fateful incident in the equestrian competition. He founded the Christopher Reeve Foundation that aims to improve the lives of those suffering from spinal cord injury.

 

 

How to Prevent Long-Term Care from Making you Broke

Many individuals have gone broke after paying few months of caregiving and/or nursing home stay. This is obviously the result of skyrocketing costs of long term care and lack of efficient health care system in the country. People may shout on top of their lungs and vent their rants on the government and the system itself, but going against the tide won’t solve it  and  make things more complicated. One of the ways to prevent you from becoming bankrupt is to plan for your health care which can be achieved through the following:

1. Make a clear agreement with a family member on the type of care they wish to receive in their senior years. You may expect initial answer “we want it here at home” but this may change depending on their condition. Some seniors, after spending few months or years at home, are transferred to a facility due to a failing health. However, some of their children or loved ones are not prepared for the move and often contend the decision with the doctor or nurse. Make sure to assess of all the possible care options for yourself or a loved one; don’t just get stuck on one type of care.
2. Don’t get yourself included on the list of people relying on Medicare’s financial assistance because you’ll be disappointed. Medicare will cover only a portion of the expenses in a nursing home for span of 100 days and excludes home care or personal care. Any day that falls beyond the time period will not be covered by Medicare.
3. Assess the financial options available to avoid procrastination. There are lots of ways to pay for long term care.

Family-provided care– Your family members or relatives may be willing to provide care from tedious tasks to less strenuous ones, so why not give it a try? The involvement of your loved one can really help cut the costs and promote close ties. Nonetheless, maybe your loved one does not want to be a burden anyone so address this problem with love and understanding.

Long term care insurance – This is the best insurance recommended for those opting for nursing home care or assisted living. It covers a lot of care services from personal to medical services. It prevents you from having your savings drained for just a night in a nursing home because you have the full control on the benefit amount and period that should go in your policy. However, this is not recommended for seniors above the age of 80 and those with terminal illnesses because the premiums may be extremely expensive for them.

 

Five Reasons to Say “Yes” to Long Term Care Insurance

Good news: a lot of seniors can go around 60 plus of age or older through and people with terminal or chronic illnesses or disability may ensure longevity through technological advancement. But wait! That good news could turn out bad for some who think longevity means an extra stretch on their finances. How ironic, isn’t it?

More years in a person’s life not just turn gray hairs and wrinkles worse; it’s a welcome party to the threats of expensive hospital bills and nursing home stays when not planned carefully.  The costs of health care, particularly LTC services, make the story even shoddier.  Here are top five reasons why you need to say yes to long term care insurance policies.

Anyone may need long term care – Around 70 percent of seniors age 65 and above will need long-term care any time. According to fact sheet presented by Urban Institute, 1.6 million seniors are staying in nursing homes, and this population is comprised of 85-year-old and above adults. The age of 85 is also the peak age of Alzheimer’s and other terminal illness.

 

Health care services are overpriced –You’ll get charged even with simple tasks such as meal preparation. Nothing’s free now! Both home and facility care rates are seriously expensive that drive patients and their families crazy.  Those who thought home care would be a cheaper option became so disappointed since caregivers’ rates have increased dramatically.

 

Family members and friends are not always there for you– One of the reasons why people don’t plan for their care is the high expectation from their loved ones and/or friends. Don’t expect too much that your children will take care of you because they will raise their own families someday. This is also a problem for many aging baby boomers who have smaller families that cannot depend on when time comes they need care or assistance.

 

Americans don’t have enough money to afford long-term care – The Employee Benefit Research Institute found out that 30 percent of employed Americans have less than $1,000 and 25 percent have less than $25,000, which means they won’t be able to afford long term care costs that could run from$80,000 per year. The workers’ savings are far lower than LTC expenses, and, unfortunately, most workers haven’t considered LTC plans to pay for any unexpected care they might need in the future. Very small percentage of seniors has secured long term care insurance or any health care plans

 

Public Health Care Programs are not dependable – So you think Medicaid and Medicare will cover everything in your bill? The recent cuts and strict limitations on the two programs means lesser opportunity for Americans to have their long-term care covered. The hopeful individuals ended up impoverished as they had to drain their assets first to pass Medicaid eligibility.