Long term care insurance

New insurance industry product that provides longcompanies offering this product and the structure
term care insurance coverage requires no policy,differs from company to company. To give you a
premiums or health qualifications. Nd there is nogeneral overview of the concept and mechanics, I
Age Limitation Why Seniors Don't Buy Long Termam going to describe the main aspects of one
Care 1. In my experience, over half the peoplecarrier's contract. Check with your financial planner
who shun long term care insurance do so becausefor all the options. The underlying base of an "LTC
they feel they will never need it. It is difficult toannuity" is an annuity. Annuities have been around
visualize going to a nursing home. Statistically, halffor a hundred years. They are safe, the funds
of these people will be right. However, there are aaccrue at a competitive interest rate, and the
number of scenarios where the person may needaccount grows tax-deferred. To form an LTC
some kind of assistance but never see the frontannuity, the insurance company has built in a "long
door of a nursing home. In fact, most people whoterm care option." It is not a rider. There is no
need long term care can receive care withoutpremium. It is simply an option you elect if long
ever leaving their home. When you stop and thinkterm care is ever needed. Sweet. To qualify, a
about it, the decision not to buy long term careperson only needs to lose two of six ADLs
insurance is a decision to self insure. This can be(activities of daily living). ADLs are insurance
costly and possibly devastating. The average costcompanies' method of determining the qualification
of a nursing home today is $80,000 per year andfor levels of care. They are eating, bathing,
rising.A normal man cant Afford Sch a hugedressing, toileting, transferring (walking) and
money towards nursing. At that rate, it doesn'tcontinence. The person doesn't have to be in a
take but a few years to grind through a modestnursing home. They simply need to have
estate. If both the husband and wife need nursingdemonstrated the inability to perform two of the
home care, A person can spend 40 years in asix ADLs to qualify to put the long term care
career building a retirement nest egg. They spendoption in their annuity in action. An Example If a
another 40+ years conservatively managing theirmale, age 60, places $200,000 into an LTC
money while trying to keep up with inflation. Ifannuity, assuming a conservative interest rate,
they need to go into a nursing home during thethe policy would grow to $300,000 in ten years. If
last five years of their life, it all could be gonethe $300,000 were converted into a life income,
quickly. It doesn't have to be that way as you willthe person would receive $2,200 per month for
soon see. 2. Many people think long term carethe balance of their life. An 8.8% return. Not too
insurance is too expensive. They may be right. Ifbad, considering it is guaranteed no matter what.
a person waits too long to apply, they may haveWith high intrest rate your annual return and
sticker shock. The rates are based on age. Moredivedends are high. If this person needs long term
the Age more the Premium You can controlcare at age 70 by virtue of losing two of six
premium for a long time insurance by selectingADLs and elected the long term care option, the
the options in the policy If a person looks at alife income would jump to $4,500 a month.
plan that covers home health care only, theConclusion These new products, long term care
premium is lower yet. This takes care of theannuities, provide the option to receive long term
50% who never will need to go into a nursingcare benefits only if they are needed. There is no
home. The only thing better is coverage without aseparate long term care insurance policy, no
premium, which I will get to in a minute. 3. Mostpremiums and generally little or no underwriting.
people react to a problem only when the problemNow there are no excuses. Those who feel they
surfaces. Its better to prevent than cure.If awill never need long term care will simply never
person waits to apply for long term careexercise their LTC option. Those who find long
insurance until they are experiencing healthterm care too expensive have an alternative with
problems, any long term care insurance plan mayno premiums. Moreover, those who have health
be prohibitively expensive or altogether unavailable.issues can obtain long term care benefits, as
The Solution: The Long Term Care Insuranceunderwriting is simplified or non-existent. For more
That is Not a Policy The insurance industry is verydetails visit Financial Directory Silas Is a Financial
competitive. This very competition engendersConsultant and make Money By advertising Online
new thinking and creative policies. Enter "Long.
Term Care Annuities." There are only a few