Rate increases are one of the most common complaints and worries for people who have existing long-term care insurance policies. Many factors are at play including misguided pricing, companies exiting the business, as well as a general lack of understanding of the actual risk the insurance companies were facing when they developed their policies… Basically, a lack of data. Today, lapse rates (when a client cancels their policy) on long-term care insurance policies are approaching zero, meaning clients are hanging on to their policies once they are in place. Originally, insurance companies assu ..read more

First, you should understand the process of putting a long-term care plan in place. Long-Term Care insurance isn’t for everyone. Some won’t qualify due to health and/or their age and others may simply not have the financial resources to do so. Long-term care planning is unique to each individual or couple and 525 Advisors is changing the process. We start with education for those that are new to long-term care insurance. Our webinars go through all the 101 information and give you examples of the different types of plans. (You can always reach out for a recording if you can’t attend one live ..read more

Washington State joined 43 other states in 2012 by offering long-term care State Partnership programs. Simply put, the partnership program rewards individuals who purchase a qualifying long-term care insurance plan by allowing them to protect assets from Medicaid spend-down rules. The Robert Wood Johnson Foundation (RWJF) is the nation’s largest public health philanthropy and was commissioned by congress in the 1980’s to study the best way to handle the growing need for long-term care services. Medicaid was, and still is the largest payer of nursing home cost in our country and it was becoming ..read more

Many financial advisors look at asset based long-term care plans as a financial product that competes with your financial investments. Otherwise, what is the rate of return the financial advisor can get on your money versus depositing it with the insurance company? The truth is, asset based long-term care plans are not like your other investments. Instead they are insurance products that guarantee a tax-free stream of income to pay for long-term care costs and protect your entire estate including your other investments. They also protect you from shrinkage to your estate due to market timing a ..read more

The Cost of Waiting Here are some questions we get on a regular basis from people who are considering long-term care planning: Why do I need to get long-term care insurance today if I’m healthy? Why can’t I just wait so I don’t have to start paying premiums today? Won’t I save me money in the long run if I wait? This is a common train of thought for people and a valid line of questioning. However, the reality of long-term care planning is there is no advantage to waiting. In fact, long-term care insurance is designed to reward you for putting a plan in place at an earlier age. To demonstrate t ..read more

People are often surprised by the process involved in putting a long-term care insurance plan in place and often wonder why it takes so long to get an approval.  Here is a quick review of what the process looks like. When you complete and application and apply for a long-term care insurance policy, the insurance company will go through an underwriting process which is the review of information relevant to the application.  However, before they can review the information, they must gather the information and here lies the problem. Most plans require a review of the applicant’s medical ..read more

One of the ongoing issues we see people struggle with is whether they have enough money to fund their own long-term care plan. It has been an ongoing claim from many advisors that if you have enough money, whatever that number is, you can simply pay for your own care and not worry about an insurance policy. But the real question should be, where do you want your money to go? Consider, every dollar used to pay for care is one dollar less to: Generate income to keep future commitments. Pass on to the family. Keep a commitment to a charity or charities, In short, paying for care disrupts ..read more

What happens if you are in a situation where you or your spouse or partner can’t qualify for long-term care insurance? Often time’s couples will step back from the process and not get any insurance which is a dangerous move. The approach that should be taken is to make sure the healthy spouse has a very meaningful plan offering more coverage for an extended amount of time.  Consider this.  If you know one of you can’t get coverage, this means you are self insuring for that individual. You will likely spend down a good amount of your assets paying for care for the individual that can ..read more

Most seniors say they want to age in place, meaning spend their final years in their own home. Yet, many fail to realize this dream because they failed to properly plan for the additional financial demands of aging in their own home. Much of the focus for aging in place is centered around making modifications to your home. Wider doorways, grab handles, new flooring and even ramps to eliminate stairs. These are all important and beneficial changes that can be done, but this does not guarantee successful aging in your home. Long Term Care Insurance You Can Count On Often overlooked is the additi ..read more

One of the most common questions our clients ask is “What happens to our premiums if we never need long-term care?” In the past this was an easy answer….they’re gone. With traditional long-term care insurance plans, you are simply paying non-refundable premiums to mitigate the financial consequences of a perceived risk. It’s just like auto insurance or homeowners insurance in the sense that if you don’t wreck your car or your house doesn’t burn down, the insurance company doesn’t refund your premiums. Now there are some riders that are available that may allow you to get some of your prem ..read more