Why would I purchase LTCi from SMU Alumni sponsored group instead of a local agent?

The buying power of your group was used to create a truly unique program.

1.A choice of top rated insurance carriers who are experienced in the LTC market.

2.Wider and simplified underwriting criteria to provide more people coverage and lower premiums.

3.Multiple products to design a plan based on your needs and desires

4.Special Discounts that are not available to the general public.

5.Service for life of your policy. 

Buying through your group provides an advocate for the life of your policy.  While insurance agents can come and go, your organization is here for the long-term.  If any issues arise with your coverage, your group, and with insurance professionals behind it are there to help.  If you buy a plan outside this program and you need help, who will you turn to?   

What is Long Term Care?

Long Term Care is an insurance policy that will pay for a portion or perhaps all of the care costs associated with someone who has lost the ability to perform at least two of six Activites of Daily Living (ADL).   The six ADL’s would be Bathing, Dressing, Toileting, Transfer, Eating and Continence.    

I’m in my early 50, am I too young to even think about needing long-term care?

Are you a working-age adult?  Consider that forty (40) percent of people currently receiving long term care are adults 18-64 years old.  What some people do not consider is that many people use their long-term care policy to recover from an accident, illness, or surgery.  Did you know that 80% of all long term care claims are paid out for care in the home or to reside in an assisted living facility?  For a few, long trm care does occur in a nursing home.   I used the home health care benefits on my LTCi insurance in my early 50’s to recover from surgery.  It does happen.  Not only that, but premiums are much lower when you purchase the insurance when you are younger.

What I suggest is that we take a look at what a long-term care plan would cover.  I’ll show you the different premiums available, and you can make a decision.  There is no obligation.  Call Jim….1-800-657-4335.

I am considering long-term care insurance but my children keep telling me they will take care of me should I need the help.  Of course I would like to save the premium money …what am I not considering?

No doubt your family will want to take care of you.  But will they have the time? (time off from work and family functions)  Will they be able to afford to? ( If you require full time care someone will have to quite their job and stay home)  Will they even be living close enough to be able to?  Maybe the answer to all of these is yes.  Maybe.    My mother was a nurse and her reasoning for getting LTCi was there are

many things that have to be done for you when you are sick that are embarrassing.

I don’t want my children to have to do those things for me and remember me that way. 

What I suggest is that we take a look at what a long-term care plan would cover.  I’ll show you the different premiums available, and you can make a decision.  There is no obligation.  Call Jim….1-800-657-4335.

I have heard the government pays for long-term care, is this true?

The only government program that provides long-term care benefits is Medicaid, to obtain Medicaid benefits for one spouse, a couple would have to pay LTC expenses out of their own pocket until they have used up most of their savings – virtually impoverishing the other spouse and leaving no financial cushion for future family needs.  In addition to the asset spend-down requirement, Medicaid often limits freedom of choice for long-term care.  Many of the most desirable LTC facilities will not accept Medicaid patients because of the reduced fees and government pays.  Medicaid facilities may not be available in the most convenient location for family members to visit.  These factors make Medicaid a less desirable choice for many families.

What I suggest is that we take a look at what a long-term care plan would cover.  I’ll show you the different premiums available, and you can make a decision.  There is no obligation.  Call Jim….1-800-657-4335.

I think Long Term Care Insurance is too expensive.   What are some of the pros and cons of paying for long term care out of pocket?

It certainly is an achievement to be able to face the future, knowing you can pay for whatever comes up.  But are you sure you want to do that?  When the time comes you’ll be paying dollar for dollar for that care, and that’s the most expensive way to do it.  The average annual nursing home cost is now $75,000.  Let’s say the premium for both you and your spouse is $3000 a year…you could pay for premiums for 25 years and spend the same as one year in a nursing home for one of you.  Considering this and that about 70% of people over the age of 65 will need care for an average of 2.8 years ( that’s a much higher risk than being in an auto accident or having your house burglarized.)  We encourage you to consider the impact long term care might have on your estate and even the finances of your children.

What I suggest is that we take a look at what a long-term care plan would cover.  I’ll show you the different premiums available, and you can make a decision.  There is no obligation.  Call Jim….1-800-657-4335.

I’ve heard a lot about a new state partnership program for long term care coverage what exactly is a “partnership program?”

The Partnership program is administered by the state department of social services and the division of insurance.  This plan allows an insured to maintain heir personal assets at a value equal to their Long Term Care benefits.  For example, an insured has $3,000 a month benefit with a 6 year duration ($3000 x 12 months x 6 years = $216,000.)  The insured may retain an amount equal to the lifetime benefit of $216,00 in personal assets and still qualify for Medicaid.  This is called the “asset protection.”  Not all states have approved the Partnership Program – check with your state to see if it is available to you.

Do all Long Term Care products offered in our state meet the Partnership qualifications?

No.   There are limits for a plan to be Partnership Qualified and these plans can vary by state but in most cases to qualify, the benefit must be at least $100 a day, carry a 2 year duration, and provide 5% compound inflation if you are under the age of 61, and some sort of inflation if you are under the age of 76.  Applicants over the age of 76 do not require the inflation option.  By Partnership qualifications you are referring to the fact the state you reside in has partnered with private insurance to offer the asset protection we spoke about in “Ask Jim” last month.  It is also important to note that not even if your state has approved the Partnership Program not all insurance companies offer a partnership policy       

Does Medicare provide Long Term Care Benefits?

Yes, but there are limits.  Medicare will only pay Long Term Care expenses following a 3-day hospital stay.  The long Term Care assistance must be for the same condition for which you were hospitalized.  If you qualify, the first 20 days are paid at 100%.  Any following days are covered at a reduced payment to a maximum of 100 day.

Is most Long Term Care delivered in a nursing home? 

No.  Only 18% of those currently receiving Long Term Care are in a nursing facility.  Two percent are in an assisted living facility and 80% are receiving home care.