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