Can't Afford Long-term Care Insurance? It May Be More Affordable Than You Think

For many people, the greatest deterrent from purchasing long-term care insurance is the notion that it is too expensive.

However, with insurers delivering simpler long-term care insurance policies, you may find long-term care insurance more affordable than you think. A long-term care insurance plan can be tailored to fit almost any budget. And, as the cost of long-term care services-including nursing home care, home health care and custodial services-rises, it doesn't take long before it exceeds the cost of long-term care insurance.

"With the national average annual cost of nursing home care over $65,000 and rising, the cost of just two or three years in a nursing home can wipe out the average American's retirement savings," said Mutual of Omaha senior vice president James Blackledge.

Alternatively, said Blackledge, the break-even point for long-term care insurance can be realized in a short amount of time.

Consider this example: A 60-year-old could purchase a basic policy with a five-year benefit period and a $100-per-day benefit for about $1,400 annually. If he or she were to need long-term care services in 10 years, the premium paid for the long-term care insurance ($14,000) would be paid back in benefits in less than six months ($100 per day x 140 days = $14,000).

It's common for companies to offer a variety of preferred rates and discounts for good health, married couples and members of certain associations. Some long-term care insurance policies offer tax advantages that allow you to deduct eligible premium amounts as medical expenses. In addition, the benefits paid by long-term care insurance policies are tax-free. Like life insurance, the earlier a person purchases long-term care insurance, the lower the rate.

Asset Protection

Unless skilled nursing care is also required, Medicare does not cover assistance with activities of daily living-mobility, dressing, housekeeping and meal preparation-often associated with most long-term care services. With Medicaid, a person must first use nearly all of his or her financial assets to become eligible.

"Long-term care insurance protects your assets so you don't have to watch your life savings whittle away. It provides coverage for all types of services whether at home, in an assisted-living facility or a nursing home," Blackledge said. "With longer life expectancies, the likelihood of needing some sort of long-term care services increases."

Because you never know when you're going to need long-term care, experts advise selecting a company that is experienced in long-term care insurance and financially sound to ensure it will be around to provide you with coverage far into the future.



By: Wendy Mitchell

For more information on long-term care insurance, visit mutualofomaha.com. Some long-term care insurance policies offer tax advantages that allow you to deduct eligible premium amounts as medical expenses.

Long Term Care Insurance - Is it Right For You?

You can't watch television for five minutes without realizing that the Baby Boom generation-the 78 million Americans born between 1946 and 1964-are entering their senior years. The music of the Sixties is now being used not to sell cars and jeans, but an array of senior products-from retirement investments to dietary supplements. For some boomers, "When I'm Sixty-Four" not a love song; it's an entry in Microsoft Outlook. The aging population has focused new attention on long term care. Who will need it? What does it cost? And how will people pay for it?

According to the American Association of Homes and Services for the Aging (AAHSA), a nonprofit organization that studies elder care, nearly 7 out of 10 adults who reach the age of 65 will require long term care at some point in their lives. Some of this care is given in the home, but the majority is provided in assisted living facilities and nursing homes. In October 2007, the MetLife Mature Market Institute reported that the average cost of a private room in a nursing home has reached $77,745 a year, and the average nursing home stay is 876 days, or 2.4 years. That means the cost of an average nursing home stay is $186,588. However, 25% of nursing home residents remain in a nursing home three years or longer. Fully 12% stay more than five years. A five-year stay would cost $388,000 at today's prices. In 2011, when the first baby boomers turn 65, costs will undoubtedly be higher than they are right now.

People pay for long term care in three ways: 1) out of their savings, 2) with insurance, or 3) through Medicaid, the government health plan for low-income individuals. Not many people have $75,000 to $400,000 in savings, so most people pay with insurance or Medicaid.

To qualify for Medicaid, an individual must have little income and few assets. The family home is exempt from the Medicaid calculation, as long as the person needing care or their spouse lives in the home. Even then, the home equity can be counted by Medicaid if it exceeds $750,000. To control exploding Medicaid costs, Congress extended the "look back" period for counting assets transferred to friends and family from three years to five years prior to applying for Medicaid.

For people with substantial assets in retirement accounts, stocks, bonds, or savings accounts, the best way of paying for long term care is through long term care insurance. Of course, the person must buy the long term care insurance before he or she needs it. The sooner individual signs up, the lower his or her premiums will be. For example, a 50-year old who gets a $150-a-day for four years of coverage can expect to pay annual premiums of about $1000. If the person waits until he or she is 65, the cost will be about $2200 a year. At 80, the cost is around $7500 a year.

Not everyone is convinced they will need a private room in a nursing home; many think they will be fine in an assisted care facility, which costs less. According to the MetLife study, a year in an assisted living facility costs $35,628-about half the cost of nursing home's private room. As a result, the daily cost of a room in an assisted care facility is $97 a day, rather than the $213 for a nursing home room. By cutting the daily rate in half, the insured is able to reduce the insurance premiums.

Other people reduce premiums by cutting the amount of time the policy covers. If the average stay is just 2.4 years, they reason, why get coverage for more than that? Only one in four people stays in a nursing home three years or more. Some people are willing to play the odds to reduce their premiums. The risk, of course, is that the insured ends up spending not just three or four years in the facility, but four, five, six years, or more. If a person has considerable assets, the lack of comprehensive insurance will put those assets at risk.

A smarter way to cut premiums is by increasing the elimination period-the waiting period before the benefits start. By extending the waiting period for a $150-a-day room by an extra 90 days, for example, the insured will have to pay an additional $13,500 in out-of-pocket expenses. This will decrease the premium amount substantially, giving the insured time to save up the out-of-pocket amount. It will also protect against the high cost of an ongoing stay. It is better to pay an upfront cost that is known than to accept an open-ended arrangement that could cost far more.



Bradley Steffens is the author of twenty-one books, coauthor of seven, and editor of the 2004 anthology, The Free Speech Movement. His Censorship was included in the 1997 edition of Best Books for Young Adult Readers and his Giants won the 2005 San Diego Book Award for Best Young Adult & Children's Nonfiction. His latest book is Ibn al-Haytham: First Scientist, the world's first biography of the eleventh-century Arab scholar known in the West as Alhazen.

Home Insurance

Home insurance is an expensive purchase for many Americans. This guide providesinformation on how to make decisions that can lower the cost of your home insuranceand increase the value you receive.Although home insurance is not required by law in most states, if your home is mortgaged, your lender may require the purchase of insurance on your home. To get the best value for your money, you must

Filing claims

Things to do before you file a claim:Review your policy or employee booklet carefully to make sure the plan covers the service in question. If you have any reason to think a health care service may not be covered, or that your company disagrees with your understanding of the policy, talk it over first with your provider and with the insurance company. Resolving questions first can prevent

Blog Launch

I have made the move away from Blogger to host my main blog using Wordpress on my own domain at Blogging Sueblimely.

To start with my main topic will be the move itself - why I made the move and how I did it. If you are thinking of doing the same my posts may be of some use to you.

I still think Blogger is a great blogging platform and even gave it a wrap on my new blog - to make up for writing about the reasons that blogspot no longer suited my needs!

What to do if you can’t find auto coverage

Some drivers have a hard time obtaining insurance. This can result from a number of factors, including a poor driving record, type of vehicle, claims history, experience, etc.There are insurance companies that write non-If your driving record prevents you from obtaining standard policies in this state.They include:AllstateDairylandFarmersFinancial IndemnityGuaranty

Firefox and Blogger layout problems

Having just reinstalled Firefox from scratch and coming up with a few things I needed to tweak to get it back to how I want it, I found this post of use: Blogger layout problems in FireFox

Filing claims insurance

Things to do before you file a claim:Review your policy or employee booklet carefully to make sure the plan covers the service in question. If you have any reason to think a health care service may not be covered, or that your company disagrees with your understanding of the policy, talk it over first with your provider and with the insurance company. Resolving questions first can prevent

Cover Your Best Friend With Pet Health Insurance Online

In the UK we are a nation of pet lovers and just as we take out insurance to cover our own health we should do everything we can to protect the health of our best friends. While we don't like to think of the worst happening our pets can get sick or have an accident and the vets bills can soon mount up which can cost a small fortune unless you have taken out pet health insurance.When taking out

Blogspot Hack Resources

If you are game to try a little customization of your blog the following sites give excellent information on hacks to.

Hoctro's Blogger Hack Directory - a round up of recent articles from most of the blogs listed below.

• Beautiful Beta and Beautiful Beta Wiki
  
• Blogger Hacked
• Blogger Hacks Wiki
• BlogU
• Freshblog
  
• Hackosphere
  
• Hoctro's Place
• Phydeaux3
• PurpleMoggy
• Singpolyma
• Stubborn Fanatic
• The last word

Student Auto Insurance Free Quote

As a young driver, you will get the best student auto insurance free quote if you implement a number of tips I'll discuss in this article...1. Raise your deductible for the best student auto insurance free quote. A higher deductible lowers your vehicle insurance rates. Nevertheless, Ensure you don't choose deductibles that are more than you can handle.2. Get trained in defensive driving. Apart

How to buy life insurance

Mail orderA few insurance companies sell through the mail. You mail a completed application directly to the company. The company usually does not have an agent in your hometown.The InternetA growing number of insurance companies are expanding their marketing and are starting to sell policies on the Web. All state laws and regulations regarding selling insurance apply to the Internet and

Shopping for health insurance

This section provides information about how to get the most out of your health insurance coverage. It can also help you decide if the coverage you have is right for you.Tips: checking out a planMake sure the coverage you buy fits your needs, and that you receive the best price for the coverage. You should compare benefits and rates. Look at two or three different plans to compare them against

Buying insurance on the internet

The accessibility and ease of the Internet has revolutionized the shopping world. Everything from pet food to furniture is available 24 hours a day, seven days a week, from the comfort of your home. This includes insurance. Here are some tips to help you protect yourself when buying insurance on the Internet.Research, research, researchResearch is by far your best protection. Fortunately, the

How insurance companies determine auto rates

If an insurance company wants to change its rates, it must submit its request to the Office of the Insurance Commissioner. The filing must include enough statistical, financial, and other information to show the change is necessary. If the company can show the requested change is justified and we determine the proposed rates are not excessive, inadequate or unfairly discriminatory, then according

Reducing your rates of homeowner insurance

Every insurance company that provides homeowner coverage uses its own package of "special" discounts to market its products to particular types of customers. The following list contains suggestions on how to reduce your rates. Be sure to ask your agent about:Non-smoker discount – Some insurers offer a discount when all family members are nonsmokers.Long-time customers – Some insurers offer

How to obtain the best value of travel insurance

If you are an occasional traveller you will probably ensure your the agent travel. But if you travels more than twice a year, it is much more profitable to have an insurance to last all the round year, than buying one each time you travel. Think ahead, plan ahead. Annual travel insurance easily pays for itself with just a couple of trips. But not all insurances are worth the same and as always

Home Business Insurance

The commercial insurance is never frank in particular when you run of the home businesses. There are several sectors of insurance which you must consider and even if it is interesting to revalue you were in the businesses during many years he your needs for insurance systematically.Your first wearing of call should be your insurer at the home existing to inform them that you run of the home

Where to obtain the best rate apartment insurance

Though the apartment insurance is relatively inexpensive, you want to obtain the best rate than you can. Here how to obtain a cheap rate with a company worthy of confidence.Which is apartment insurance?The apartment insurance, also called the insurance of tenants, will pay to replace your personal property if it flew, or damaged by vandalism, fire, smoke, the lightning, and other of the causes.

How to Obtain the Cheap Apartment Insurance of California

California has some of the highest rates apartment insurance in the nations. Thus how can you obtain the cheap apartment insurance of California?Apartment Insurance of CaliforniaAn insurance policy Apartment Insurance of California covers what follows:Personal possessions - If your possessions are flights, or are damaged by fire, putting balance flee, or the acts of nature, apartment insurance

Shopping for coverage Insurance

How to determine how much coverage you needInsurance companies use established formulas to help them decide the appropriate limits of dwelling and structure coverage. These calculations take into consideration the same type of information used in real estate appraisals, such as:Construction materialsType of floor plan (two-story, split level,ranch, etc.)Total square footageNumber and types of

Shopping for automobile insurance

Many insurers offer auto insurance in Washington state. Under state law, insurers may consider your age, driving record, where you live, credit history, and other factors to decide if they will offer you coverage. Not every insurer will offer you coverage.If an agent or broker is unable to find coverage for you, it doesn’t mean that there isn’t an insurer willing to cover you. No single agent or

Long-Term Care Insurance right for YOU

What is Long-Term Care?Long-term care insurance can cover medical and/or non-medical support services used during a prolonged illness, disability or loss of mental capacity.This care may include assistance with activities of daily living such as bathing, dressing, eating, toileting, transferring or continence. It may also include grocery shopping, laundry, meal preparation, managing medications,

Types of coverage

There are many different types of coverages available to meet your auto insurance needs. Some are required and some are optional. Here are brief descriptions of the available coverages:LiabilityWashington state requires liability coverage. This covers bodily injury and damage to property that you cause to others while using your car.Personal injury protectionThis covers a limited amount of

Understanding your auto insurance policy

Your insurance policy is a contract between you and your insurance company. It spells out exactly what the company agrees to do in exchange for the premium that you pay. This contract is divided into two sections: a declarations page and the policy itself.The declarations pageThis section of the policy includes basic details of the agreement. It is important that you review this page to make sure

Insurance and home business

If you operate a home-based business – either part-time or full-time – you might be uninsured and not realize it. Many home-based business owners mistakenly believe that their homeowner policy will provide coverage for their business operations and property.It’s true that your homeowner’s policy may provide a limited amount of coverage for business-related personal property in the home. However,

Foreign Travel and Health Insurance

When you travel outside your health insurer’s regular provider network, your insurer may not pay your medical bills, except for emergency care. Before you travel abroad, check with your health insurer to make sure you understand the rules in your policy. In some cases, especially if you plan to travel for an extended period to study or work, you may want to buy additional coverage.What you should

Comments Form

Thanks to Ramani from Hackosphere for pointing me in the direction of the Comments Form feature on Blogger. Text typed in the Comments Form, which can be found in your blogs Settings/Comments section, is displayed just below the 'Leave your Comments' heading in the write comments window.

I have used my form to add a message about informing readers that I have removed 'nofollow' and requesting input as to new blogger features or add-ins. If you want to learn more about 'nofollow' please see my guest post on BlogBlond's site at: NoFollow, NoGood for Bloggers



You can use this for other purposes too. For example Digital Inspiration is using it for displaying a Comments Policy. Their article about it can be seen at New! Add Visitor Comments Policy to Your Blogger Blog.

I would be pleased to hear about how other blogs are using the feature.

Types of Insurance

InsuranceThe word "Insurance" refers to the promise of repayment of the money in the case of any loss to the insurer. The insurer may be an individual or a company who have made prepayment to an insurance company for a secured life. Insurance also provides "security against future loss". We cannot predict the timing and the occurrence of loss. So we need insurance plan in order to protect

Homeowners Insurance

What is Homeowners Insurance?Homeowners Insurance provides you with the coverage in case of a disaster. In the event of a disaster your homeowners insurance will provide you with financial protection. A homeowners insurance policy insures the home in which you live along with the possessions you keep in it.Home Insurance is a Package PolicyHomeowners insurance is purchased in a package policy. A

Consider Travel Insurance When Traveling Abroad

If you're planning to go on a holiday or on a business trip, travel insurance is a good idea. There are many flexible insurance schemes available from different insurers for people who travel for different reasons. The insurance policy can also be extended depending upon your period of stay. You can apply for insurance online so that it ensures quick processing and quick supply of quotes. This

Getting cheap auto insurance - a handy manual

The first question that needs to be answered is - Is it even possible to get cheap car insurance? The answer is yes! The car insurance industry, like most, is riddled with technical exceptions, as well as widely varying products. If you understand the nuances of the industry you will be able to quickly and significantly lower the rate you pay for car insurance. Here are a few guiding principles

Long Term Care Insurance Policy

Most young people ignore the fact that they will grow old one day. It is the wise ones who not only think about it but also provide for their future. Statistics show us that almost one out of two Americans require long term care when they grow old. Due to immobility and illness people become dependant on families and institutions to carry out normal daily activities such as dressing and

Why Do you Need of Home Insurance?

Home insurance, or homeowners insurance, is an insurance policy that combines various personal insurance protections which can include losses occurring to one's home, its contents, loss of its use (additional living expenses), loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home.The home insurance policy is usually a term

Why Do you Need An Affordable Health Insurance Policy?

Have you ever thought of how will you meet your and your family members' health expenses? Here you will need the help of health insurance policies for you and your loved ones. There are many affordable health insurance policies available in the market and you can opt for the best policies that can suit your needs.Affordable Health Insurance Plan is a policy where the insurer pays the cost of

Why Do you Need An Affordable Health Insurance Policy?

Have you ever thought of how will you meet your and your family members' health expenses? Here you will need the help of health insurance policies for you and your loved ones. There are many affordable health insurance policies available in the market and you can opt for the best policies that can suit your needs.Affordable Health Insurance Plan is a policy where the insurer pays the cost of

Motor Car Insurance

Life in 21st century is becoming more complex by day. As we discover new machines to make life simpler, their upkeep and economic implications take up more of our time than ever. Today, motor insurance has become almost as important as life insurance. This sector is growing very rapidly with the highest growth rate in the entire industry.The reason for such a turn-around is that repairs and

Student Health Insurance

A question might crop up your mind while you hear about student Health Insurance, why do I need a student health insurance? But you should keep in mind that that no one is invincible. You cannot foresee illness or any other mishaps that might happen to you.Student health insurance is a must for students especially if you are planning to go abroad for studies or if anyone from outside UK is

Group Health Insurance

Do you own a business organization? If yes, why not ensure the good health of your employees with group health insurance policies? Whatever business you are in, safeguarding you and your employees' health makes good sense.Health is wealth. Everyone aspires for a sound health. But no one can predict when or how diseases will strike. Insurance is therefore a good way of preparing for what may

Medical Insurance in Uk

Everyone craves for a healthy life. Without a vigorous health all the other things in life will be nothing but worthless. But have you ever wondered how much the cost of treatments has increased in the present world. Everybody wants to be free of expensive and extensive medical bills. Even for a simple regular treatment, the fees of a doctor are so high that it often creates annoyance amongst all

How you Can Save On Auto Insurance

There are several little things that determine the cost of auto insurance. When properly attended to these can significantly reduce the costs associated with insuring the vehicle.Auto insurance is mandatory and many people treat the paying for it like a utility bill - something that just got to be done and the least bothered with the better. Therefore they just go to the same place year after

Polls for Blogger

Blogger is trialling a poll element, as you can see by the poll in the left sidebar which will be in place until the poll closing day on 31st July.

Please give it a try and I will report back on how it works. It will also give me valuable feedback as to what you would like to learn.

16 Widget Sites For Your Blog

I have done some research on widget sites and have come up with a list of those that I think provide the most variety and choice. They are in alphabetical order rather than bypreference.

• Google Gadgets for your Website
• GoodWidgets
  
• Labpixies
• MuseStorm
• Neoworks
• serverboy.net software
• Sexy Widget
• Slide
• Snipperoo
• SpringWidgets
• StickiWidgets
• Widgets Lab
• Widgetoko
• Widgetbox Blogosphere
• Widgipedia
• Your Minis

I have created a custom search which will search all of these sites for any word.

Widget Search

You can also use this search from the sidebar of this blog.
Sites that provide information and keep you up to date with new Widgets:

• Mashable!
• Read/WriteWeb
• google gadget tryout

Archive Calendar - New Blogger

I have been playing with my template, yet again, and have transformed the archive list in the sidebar into a 'calendar'.

Thanks to Phydeaux for creating this feature, which I think is an excellent way of displaying archives. His instructions can be found on his site at:

Blog Archive Calendar

Themes for the calendar with their instructions and copy and paste styling can be found on Phydeaux's Blogger Archive Calendar Styles page.

New Blogger - Template Update

I have added to my sidebar list of sites offering XML templates for the new Blogger. In case you miss them here they are:

• Beautiful Beta


• Blog Crowds


• Blog Flux themes


• Bloggger Templates


• Custom Blogger Templates


• Free Blogger Skins


• The Blogger Workshop


• Hacksophere
A useful template here with some hacks built in.

HHS Launches New Website Promoting Long Term Care Planning

Essential Planning Tool to Help Americans Own Their Own Future

HHS’ Assistant Secretary for Aging Josefina G. Carbonell announced a new Web site that will make it easier for consumers to get the information they need to plan for long-term care. The National Clearinghouse for Long-Term Care Information Web site provides comprehensive information about long-term care planning, services and financing options, along with tools to help people begin the planning process.

The clearinghouse Web site is designed to increase public awareness about the risks and costs of long-term care and the potential need for services, and to provide objective information to help people plan for the future. The clearinghouse Web site was designed by HHS’ Administration on Aging (AoA), Centers for Medicare & Medicaid Services (CMS) and the Assistant Secretary for Planning and Evaluation (ASPE).

"The National Clearinghouse for Long-Term Care Information Web site is an important step toward giving consumers the tools they need to take personal responsibility for planning for their future long-term care needs," HHS Secretary Mike Leavitt said.

The Deficit Reduction Act of 2005 mandates that the Clearinghouse contain the following: objective information to help consumers decide whether to purchase long-term care insurance or to pursue other private market alternatives that pay for long-term care; information about states with long-term care partnerships under Medicaid; and information about the availability and limitations of coverage for long-term care under Medicaid. The Web site features a number of resources to help individuals start the planning process, including interactive tools such as a savings calculator, contact information for a range of programs and services, and real-life examples of how individuals have planned successfully.

The National Clearinghouse for Long-Term Care Information Web site helps support the principles of the "Choices for Independence Initiative," included in the recently reauthorized Older Americans Act (OAA), signed into law by President Bush in October.

"The new OAA helps empower individuals and supports better planning, improved home and community-based long-term care options, and more flexible and consumer-friendly systems that allow Americans to remain vibrant and independent," Assistant Secretary Carbonell said.
The new Web site also supports the "Own Your Future" education campaign, a joint federal-state initiative designed to increase consumer awareness about planning for long-term care. HHS recently announced new federal-state partnerships with several states designed to help Americans take an active role in planning ahead for their future long-term care needs.

"The National Clearinghouse for Long-Term Care Information Web site is an essential component of the ‘Own Your Future’ campaign," CMS Acting Administrator Leslie V. Norwalk said. "Users can easily find information about services, resources and finances to help them plan for future long-term care needs."

For more information about the "Own Your Future" campaign and the National Clearinghouse for Long-Term Care Information, please visit www.longtermcare.gov

Technorati Tags: Long+Term+Care+Planning HHS Insurance Healthcare Aging

The High Cost Of Long Term Care

Have you ever really thought about just how expensive long term care services really are?

If you haven't then you may be surprised that a recent study by New York Life Insurance Company shows that the average daily cost of long term care is $204, or $74,445 Per Year For Private Room!!!

The study, which you can see here, also states:

*Costs for both private and semi-private care were 6% higher than in 2005

*Top Five U.S. Regions with Greatest Cost for Private Nursing Home Care in 2006

Alaska - $388 per day

Connecticut – $366 per day

Connecticut -$323 per day

New York – $311 per day

New York – $311 per day


The 2006 study goes on to say "Many people assume Medicare will pay for these nursing home residences, but the truth is that the portion Medicare covers is quite narrow and costs are rapidly rising in most U.S. regions"

These issues will continue to compound themselves as advances in medical technology, medications, and improved medical procedures help people to live longer lives. It is vital the people educate themselves about the cost of long term care.

Long term care will most likely not get any cheaper. It is more reasonable to assume that these services will rise in costs due to the nursing shortages that we are experiencing now. Tnursingrisng shortages are only expected to get worse because baby boomers make up a large portion of the current nursing population.

It is a very good idea to consider insurance to help you cover these costs, because as things are currently, Medicare only covers some of the costs of long term care services and only pays for a portion of those covered services.

Technorati Tags: long+term+care+insurance nursing+homes services healthcare assisted+living

Do you know why LTC insurance is important?

I found a great article that summarizes what I have been trying to say on this blog for the past few months. It indicates that many people simply do not grasp the importance and expense of long term care insurance.

The article goes on to say that staying in a nursing home or long term care facility costs more than staying at an expensive hotel!!!

The article also reflects five of the most common misconceptions that people have about how their long term care needs will be paid for.

You can read the whole article here or by visiting the main site at http://www.medicalnewstoday.com/