| New insurance industry product that provides long | | | | companies 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 no | | | | general overview of the concept and mechanics, I |
| Age Limitation Why Seniors Don't Buy Long Term | | | | am going to describe the main aspects of one |
| Care 1. In my experience, over half the people | | | | carrier's contract. Check with your financial planner |
| who shun long term care insurance do so because | | | | for all the options. The underlying base of an "LTC |
| they feel they will never need it. It is difficult to | | | | annuity" is an annuity. Annuities have been around |
| visualize going to a nursing home. Statistically, half | | | | for a hundred years. They are safe, the funds |
| of these people will be right. However, there are a | | | | accrue at a competitive interest rate, and the |
| number of scenarios where the person may need | | | | account grows tax-deferred. To form an LTC |
| some kind of assistance but never see the front | | | | annuity, the insurance company has built in a "long |
| door of a nursing home. In fact, most people who | | | | term care option." It is not a rider. There is no |
| need long term care can receive care without | | | | premium. It is simply an option you elect if long |
| ever leaving their home. When you stop and think | | | | term care is ever needed. Sweet. To qualify, a |
| about it, the decision not to buy long term care | | | | person 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 cost | | | | companies' method of determining the qualification |
| of a nursing home today is $80,000 per year and | | | | for levels of care. They are eating, bathing, |
| rising.A normal man cant Afford Sch a huge | | | | dressing, toileting, transferring (walking) and |
| money towards nursing. At that rate, it doesn't | | | | continence. The person doesn't have to be in a |
| take but a few years to grind through a modest | | | | nursing home. They simply need to have |
| estate. If both the husband and wife need nursing | | | | demonstrated the inability to perform two of the |
| home care, A person can spend 40 years in a | | | | six ADLs to qualify to put the long term care |
| career building a retirement nest egg. They spend | | | | option in their annuity in action. An Example If a |
| another 40+ years conservatively managing their | | | | male, age 60, places $200,000 into an LTC |
| money while trying to keep up with inflation. If | | | | annuity, assuming a conservative interest rate, |
| they need to go into a nursing home during the | | | | the policy would grow to $300,000 in ten years. If |
| last five years of their life, it all could be gone | | | | the $300,000 were converted into a life income, |
| quickly. It doesn't have to be that way as you will | | | | the person would receive $2,200 per month for |
| soon see. 2. Many people think long term care | | | | the balance of their life. An 8.8% return. Not too |
| insurance is too expensive. They may be right. If | | | | bad, considering it is guaranteed no matter what. |
| a person waits too long to apply, they may have | | | | With high intrest rate your annual return and |
| sticker shock. The rates are based on age. More | | | | divedends are high. If this person needs long term |
| the Age more the Premium You can control | | | | care at age 70 by virtue of losing two of six |
| premium for a long time insurance by selecting | | | | ADLs and elected the long term care option, the |
| the options in the policy If a person looks at a | | | | life income would jump to $4,500 a month. |
| plan that covers home health care only, the | | | | Conclusion These new products, long term care |
| premium is lower yet. This takes care of the | | | | annuities, provide the option to receive long term |
| 50% who never will need to go into a nursing | | | | care benefits only if they are needed. There is no |
| home. The only thing better is coverage without a | | | | separate long term care insurance policy, no |
| premium, which I will get to in a minute. 3. Most | | | | premiums and generally little or no underwriting. |
| people react to a problem only when the problem | | | | Now there are no excuses. Those who feel they |
| surfaces. Its better to prevent than cure.If a | | | | will never need long term care will simply never |
| person waits to apply for long term care | | | | exercise their LTC option. Those who find long |
| insurance until they are experiencing health | | | | term care too expensive have an alternative with |
| problems, any long term care insurance plan may | | | | no 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 Insurance | | | | underwriting is simplified or non-existent. For more |
| That is Not a Policy The insurance industry is very | | | | details visit Financial Directory Silas Is a Financial |
| competitive. This very competition engenders | | | | Consultant and make Money By advertising Online |
| new thinking and creative policies. Enter "Long | | | | . |
| Term Care Annuities." There are only a few | | | | |