Monthly Archives: February 2015



That depends. If you have considerable assets and income, utilize your ability to protect yourself and buy a robust policy. It’s a great value, and will give you peace of mind and protect your family even if you never have to use the policy.


However, because a bigger policy costs more this strategy only works for the comparatively wealthy. This has required an adjustment by long term care insurance specialists. We are now selling co-insurance, with the emphasis on covering the cost of home care and assisted living facility care. This is because less than 20% of the care scenarios take place in a nursing facility.


So what’s enough long term care protection for most? In my view, a policy would cover the average cost of eight hour home health care or 24 hour assisted living facility care in your area (often $ 120 to $ 170) for three years with a 3 % compound or 5 % simple inflation rider. In most cases, an initial pool of money in the $ 100,000 to $ 150,000 range will protect the vast majority.


The goal here is to spread some of the risk. There are other sources of income and you must be comfortable with the premium. Remember that the cost of insurance is very small…the cost of care is very large. The key is, buy something! If nothing is bought, no risk is spread. If nothing is bought, you have failed to protect yourself, your family and your income & assets.

SMART BUYING TIPS for friends and family that do not yet have a policy


  1. Set yourself a deadline: Time is your enemy when it comes to purchasing long term care insurance. Time leads to increasing age and deteriorating health. That means higher premiums or being uninsurable. Set yourself a decision deadline. Take the pressure of being self-insured off your shoulders and transfer it to an insurance company.
  2. Work with someone who represents multiple companies: Long term care solutions are becoming more varied and depend on your total financial and family situation more than ever. An agent who represents multiple companies can choose the plan best suited for you.
  3. Shared care can save you money: Shared care riders can allow the benefits to be used by two cohabiting people. This brings both flexibility and lower cost. In addition, many Insurers offer significant discounts to couples who apply together.
  4. New products offer exciting options: With the explosion of new and varied long term care solutions, you need expert advice. Make sure you get it. We have years of long term care experience. We can help.


It’s time to ponder what changes lie in store for our long term care insurance industry. Some  predictions are easy to make, while others require looking into a very cloudy crystal ball.


The economy: The most recent economic indicators would lead one to believe that the recession of 2008 has truly ended, at least for many of our better-off citizens. An increased consumer confidence level could lead to more willingness on the part of consumers to protect themselves with long term care insurance.


The government: Washington will continue to be in gridlock. Little will happen in 2015, and long term care issues will be relegated to committee conversations.


The products: Current products will be sold with shorter and richer benefits. But there will be an increase of new long term care insurance products   Many of these will contain elements that are common to current life insurance products. In addition, life insurance hybrid and linked products will become significant and varied.


The need: Another year has passed, and once again, the need has grown. Here come the baby boomers, now ages 51 to 69, whose parents are mostly in their eighties, getting sick and needing care. More and more baby boomers will learn from their parent’s experience that they need a long term care plan. If you are among these folks, please call us before it’s too late.


Unfortunately, we don’t have the crystal ball to know if and when you may need it.  However; you could need long term care at any point.  But the odds are that you will need the care later rather than sooner.  The age of greatest need begins in the late seventies.  The odds are greater for women.  The average period of needing care is longer for women than for men.

Remind your family and friends that  it does no good to put a long term care plan in place when you need the care.  You cannot obtain protection at that time.  It’s like buying fire insurance while your house is burning down…you can’t buy it then.  The best time to buy is now…while you’re young and the premiums are lower…while you’re healthy and can qualify for good health discounts.