25 Learning About Owning Personal Long-Term Care Benefits
- Lavine LTC Benefits
Categories: Caregiving Plan , Extended Care Benefits
The topic of Long-Term Care is important to provide caregiving benefits to pay for care services.
By 2030 it is estimated that 1 in 4 Americans will be over 50. In 2050, 1 of every 5 Americans will be 65+ according to data from the Centers for Disease Control and Prevention. However, some articles provide misleading or completely erroneous information on Long-Term Care Insurance.
Long-Term Care insurance premium rate increases articles are often misleading. They usually leave out many details. The reporters or “professionals” writing these articles often have an agenda to push the public in one direction or another.
The issue of planning for the financial costs and burdens of aging is important to American families; you should know the facts.
Unfortunately, the articles talk about premium increases to scare the consumer. Maybe the writer wants the government to pay for all long-term care (not going to happen as too many people require care and budgets are tight as it is trying to take care of those with little or no savings).
These increases that are being reported are primarily on “legacy products” These are older plans that were priced well before the interest rate crash and rate stabilization regulations.
Today, all plans are priced in a low-interest-rate environment (interest rates have been low in the United States over the last decade). These older plans, which have increased, were based on these factors:
· Interest rates
· Lapse rates (meaning, how many people drop their policies. In practice, very few do, but this was not factored into premium pricing on many older plans.
· Claims and underwriting experience
These policies are paying huge benefits as well. For example, in 2017, over $9.2 billion was spent on benefits to American families protecting assets and easing family burden.
Older policies were under priced when the actuaries calculated premiums, and even with increases, they still have outstanding value and huge benefits. Noone likes an increase, but you must put that increase in perspective.
Some have lifetime lifetime benefits as well. These benefits can be reduced where the benefits maybe less but the premiums are not increased.
Today’s Long-Term Care insurance policies remain affordable as people purchase their personal benefits before retirement.
Experts say that increases risks are small, but there is always a chance of an approved increase. If you read published articles, you think the industry is dead, and consumers are no longer interested in the product.
There are insurance companies marketing Long-Term Care insurance.
Consumer interest has never been greater. Consumers are younger and more knowledgeable about the risks (often with first-hand experience with an elder parent or other family members), and we are bombarded with requests for information and quotes.
Consumers seek help from Long-Term Care specialists as most financial advisors and general insurance agents have limited knowledge and experience with the products, underwriting, policy design, benefit options, and the federal/state partnership program available in most states.
Therefore, some of these professionals push consumers into options they are more comfortable with despite the fact they might not be the best and most affordable way to address the costs and burdens of aging.
As an Extended Care Benefits Advisor, I will ask you helpful questions about your health, family history, and retirement plans to make the proper recommendation.
Anyone willing to give you “quotes” without asking helpful questions should be avoided.
Long-Term Care Insurance is designed for financial suitability and what you want the LTC plan to accomplish with benefits.
Every insurance company has its underwriting criteria. As an extended care benefits advisor, I am appointed with all the major companies.
Caregiving is emotionally and financially challenging for those needing care and those responsible for caregiving.
A spouse or partner cannot be expected to be a caregiver without impacting their health. It also affects adult children and their families and careers.
Owning a personal caregiving plan will be of value to own the appropriate for the right place and at the right time you need care services.