When many people think of the term "long-term care," they usually think of long-term care insurance. As a result, the first person they contact to discuss their plan for paying for long-term care is their insurance agent. Who of course, will ALWAYS recommend that they buy insurance- whether it's needed or not.
You can't really know what the appropriate LTC plan is for you until you objectively evaluate all 4 options within the context of your personal and financial situation. In order to do this, I recommend that you seek the services of an Objective Financial Advisor.
What is the difference between an Objective Financial Advisor (OFA) and a traditional advisor? For one thing, OFA's look for long-term relationships, not sales transactions. But the most important characteristic of an OFA is that they do not sell insurance or financial products. By not accepting commissions, referral fees, or kickbacks, the potential for a conflict of interest is eliminated.
http://www.objectivefinancialadvisors.com/
Government Won't Be Offering LTC Insurance to the Masses: CLASS Act is Dumped
As is the case with many Government programs, the Community Living Assistance Services and Supports Act (CLASS) looked good on paper. The CLASS Act was structured to help offset the costs incurred by millions of adults needing long-term care. The program had the potential to reduce reliance on Medicaid and provide relief for family caregivers. So what was the problem that resulted in the CLASS Act being killed?
According to Health Secretary Kathleen Sebelius, an analysis of the numbers indicated that the program was simply not economically viable. Critics were also concerned that eventually, the majority of people covered by coverage provided through the CLASS act would be those who were too sick to get private coverage.
With an estimated 15 million Americans needing some form of long-term care by 2020, it’s clear that Americans need to seriously plan ahead for paying for long-term care. Ask your financial advisor for advice or seek the services of a long-term care planning and insurance expert.
www.superiorltcmsp.com
Could Future DNA Testing Affect One's Ability to Qualify for LTC Insurance?
What would be the implications of the knowledge of one’s genetic predisposition to some condition through DNA testing? Could your health insurance contract be deemed "invalid" since you had this predisposition at the time of application? Could this sort of knowledge affect your children's ability to become employed?
A recent article in the NY Times addressed this very issue ."... even doctors who recommend DNA testing to their patients warn them that they could face genetic discrimination from employers or insurers." Although there are few examples of actual discrimination based on genetic testing, it is a valid concern. According to reports, the consensus is that most people are fearful of having their genetic "roadmap" laid out for all to see.
As an LTC Planning and Insurance expert, I also naturally began to wonder about the implications of genetic testing in regard to long-term care insurance underwriting. While testing of this sort is not currently being done, what if it were to become routine and insurance companies began to test for genetic predisposition to conditions that require extended periods of care, such as Parkinson's Disease or Alzheimer's Disease? Could people be denied coverage based on their genetic make-up?
I'm not suggesting that anyone should run out and buy LTC insurance just to avoid such a situation. But it is one more factor that has the potential for making it more difficult in the future to obtain this type of coverage.
Avoid "Negative Inheritance" with LTC Insurance
Many of our parents will need long-term care. Someone will pay for that care or a family member will provide it.
With the growing need for long-term care, and the escalating costs, economists have coined a new term: "Negative Inheritance". It's defined as the financial situation of children who have paid more for their parents care than they will ever receive from any gifts or inherited funds they could have received.
Is there a way to protect our financial security from "negative inheritance"? One strategy recommended by financial advisors is including long-term care insurance as part of the family's risk management plan. Unfortunately, not all of our parents have financial advisors, and even if they do, the advisor may not be comfortable with a discussion about the importance of integrating LTC Planning with their clients financial and estate plan.
How do we initiate a discussion of planning for long-term care with our parents? We begin by asking the big question: "Have you considered what you would do if you were to need long-term care?" If they say "Yes, as a matter of fact we have," your response should not be "Great, glad to hear it." Your response should be "That's great. I'd like to hear about your plan." And then listen carefully to see if the plan seems appropriate and practical for their situation.
If your parents have not discussed long-term care, or have given you only a vague idea of what their plan is, don't panic. Your job isn't to come up with a plan for them by yourself. Your job is to steer your parents to someone who can educate them and assist them with long-term care planning. Ideally, that person is someone they have trusted with their other financial decisions - their financial planner, CPA, or estate planning attorney. If they haven't worked with a financial professional before, then you may need to help them find an LTC Planning expert.
Even if your parents feel they have a solid plan for paying for or providing for their long-term care, it would be wise to have it reviewed by a professional specifically trained in long-term care planning.
Before having "the conversation" with your parents, it may be wise to answer for yourself the question you will be asking them: What's YOUR plan?
With the growing need for long-term care, and the escalating costs, economists have coined a new term: "Negative Inheritance". It's defined as the financial situation of children who have paid more for their parents care than they will ever receive from any gifts or inherited funds they could have received.
Is there a way to protect our financial security from "negative inheritance"? One strategy recommended by financial advisors is including long-term care insurance as part of the family's risk management plan. Unfortunately, not all of our parents have financial advisors, and even if they do, the advisor may not be comfortable with a discussion about the importance of integrating LTC Planning with their clients financial and estate plan.
How do we initiate a discussion of planning for long-term care with our parents? We begin by asking the big question: "Have you considered what you would do if you were to need long-term care?" If they say "Yes, as a matter of fact we have," your response should not be "Great, glad to hear it." Your response should be "That's great. I'd like to hear about your plan." And then listen carefully to see if the plan seems appropriate and practical for their situation.
If your parents have not discussed long-term care, or have given you only a vague idea of what their plan is, don't panic. Your job isn't to come up with a plan for them by yourself. Your job is to steer your parents to someone who can educate them and assist them with long-term care planning. Ideally, that person is someone they have trusted with their other financial decisions - their financial planner, CPA, or estate planning attorney. If they haven't worked with a financial professional before, then you may need to help them find an LTC Planning expert.
Even if your parents feel they have a solid plan for paying for or providing for their long-term care, it would be wise to have it reviewed by a professional specifically trained in long-term care planning.
Before having "the conversation" with your parents, it may be wise to answer for yourself the question you will be asking them: What's YOUR plan?
LTC Insurance: Low on the List of Priorities for Personal Insurance
Before considering long-term care insurance, it's important to prioritize your personal insurance needs. The following is our list of the most important types of personal insurance, in order of priority:
- Health Insurance: Anything can happen to our health at any time. No one in our country should be without health insurance- unexpected illnesses or accidents carry a hefty price tag. Health insurance helps a financially stable family remain secure by covering unexpected medical expenses that could otherwise devastate their financial future.
- Disability Income Insurance: If you are working and earning an income, disability income insurance can replace a portion of your income if you become disabled and are unable to work. Disability insurance is particularly important for the breadwinner of the family. However, if you are retired and/or living on investment income, disability insurance is not a concern- it only replaces working income.
- Life Insurance: If you are earning a working income and have children or others who are dependent upon your income, your death would be a financial hardship for your family. Life insurance is designed to relieve that hardship and is potentially your third most important type of insurance. However, if do not have any dependents to protect, life insurance should be moved to a lower priority on this list.
- Long-Term Care Insurance: You should consider LTC Insurance only after you have analyzed your need for the above 3 types of personal insurance.
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