Long Term Care Daily

An article out of USA Today highlighted the problems of retiring in an ailing economy.  The usual culprits of decreasing values of retirement funds, decreasing homes values and rising prices of consumables were the big three for this article.  “Americans need to face a sobering fact: They’re not likely to have as much money for retirement as they’d projected. Which means that many of us will have to save more, expect less and work longer than we’d planned.” 

With that said, the article continues by saying that most Americans are sorely behind in their savings for retirement.  The statistics they reported indicated that 36% of working Americans over the age of 55 have less than $25,000 in retirement savings.  Not enough to retire on let alone if there is a major health event.   Health care costs rise faster than even inflation does.  So this means that even if inflation has been taken into account for retirement plans, a major health event could still suck those savings and retirement funds faster than planned.

The article was even more pessimistic when it talked about Reverse Mortgages as an option for retirement.  It mentioned Yale economist, Robert Shiller, as beleiving that home prices could possibly decline by 30%.  Wit this scale of decline, there is no equity left to do a Reverse Mortgage.  Downsizing is all that is left…

This artilce seemed all doom and gloom.  We all see the problems out there…has anyone seen someone with solutions?

Today, World Alliance Financial (f/k/a Vertical Lend and d/b/a Lender Lead Solutions), a Reverse Mortgage Lead generator (you may have seen their Robert Wagner advertisements) and Reverse Mortgage wholesale lender sent out an email announcement to their clients that they are holding National Senior Independent Living Month.  Their press release can be found on their World Alliance Financial website but they have posted nothing on their Lender Lead website (not even on their media page).  The Lender Lead email that went out did mention that they have marketing materials on the user side of their site.

I think that this is a great way to promote ways for Seniors to live independently, but I have a few questions about how they are doing it.  Senior Independent Living Month isn’t in a month for them, it runs from May 15th to June 15th.  That seems like half of two months – why not just pick a month like every other cause out there?  They are promoting this by partnering with the National Association of Homebuilders, Rebuild Together,  and the National Committee of Grandparents for Children’s Rights (NCGCR) for different publicity events.  These are some GREAT organizations and they should have some good success with them, but I find it VERY interesting that they aren’t trying to partner with National Aging in Place Council (NAIPC) who has their own annual event in October called National Aging in Place Week.

I guess if they can bring more publicity to the issues of long term care, who is going to provide it and who is going to pay for it, I’m all for it.  We’ll see what kind of press they get…

The old story is that women are so busy taking care of others, they forget or don’t have time to take care of themselves.  I came across an interesting press release from insurance lawyer Frank N. Darras on the different types of insurance and what women should know.  I thought it was a great little piece because it was simple, informative and had some good advice.  Even though the release was written as "What Women Need to Know," it would be beneficial for men to read as well. 

There was only one line that I would take contention with though.  He writes that "If you are under 59, you are too young to shop for long-term care."   So many factors go into whether or not you will need Long Term Care that the decision to "shop" for it really needs to be on a case by case basis.  It never hurts to be informed in your 40’s or 30’s for that matter…especially if your family history indicates you may need Long Term Care earlier than your 60’s.

But with that said, Darras breaks down different types of insurance nicely (directly from his press release):

LIFE INSURANCE

• Leaves our loved ones financially secure, in the event of a tragedy
• May not be necessary if no one depends on you for income, financial support and you have enough money for burial and funeral expenses
• Have a reliable second party listed on your policy so they can be notified if you miss paying a premium
• Make sure you have ‘waiver of premium’

DISABILITY INSURANCE

• Get disability coverage when you’re young
• Consider "own occupation" policies
• Beware clauses limiting coverage to 24 months, after that, requirements change and you could be denied coverage
• Understand the ‘limitation on benefits’
• Group disability coverage from work does not protect you and it’s taxable

LONG-TERM CARE

• If you are under 59, you are too young to shop for long-term care
• If you are older, understand what services long-term care policies cover and who provides the care
• Make sure the policy allows for care: in your home, by a family member or friend, in the home of a family member, in an adult care service facility, in an assisted living facility, a hospice facility or in a nursing home
• Understand the terms: custodial, intermediate and skilled care

Today starts a three part series interview with Long Term Care Insurance expert Scott Olson. Scott is a long term care insurance professional with years of experience. He is author of “Making Long Term Care Insurance Easier ” which can be purchased on his website: ltcinsuranceshopper.com.

Scott Olson, author of “Making Long Term Care Insurance Easier,” has been selling insurance for over 13 years. He sold face to face until he became a care-giver and had to spend much of his time providing in-home care. He now works over the phone and online with his clients. He is pretty unique in his approach because what he does is to help clients shop for Long Term Care insurance – not “sell” it to them.

Scott was one of the first two hundred insurance professional in the country to get the CLTC (Certified in Long-Term Care) designation. This designation was started in 1999 and requires coursework and successfully passing an examination. “The CLTC course reflects the nature of long-term care which is a continuum of care, housing and services people may need when they live a long life. Students are provided the information and training needed to offer guidance to families on a range of issues including home care, assisted living, nursing homes, social services, taxes, law and most important, what will pay for these resources.”

LTCD: Why write the book?

Scott Olson: Two reasons really. The first is that most people have no idea HOW a long term care insurance policy works. It is different than medical insurance that it can be difficult to understand.

The second reason is that people are making decisions on features that are insignificant. There are a lot of “bells and whistles” to some policies that, when looked at logically, add little value. Consumers aren’t focusing on what really matters – what will give you the most value?

LTCD: What are some examples of confusing bells and whistles?

Scott Olson: The Survivorship Benefit is the first that comes to mind. This feature sounds great –survivors have the benefit of this policy, but in reality this feature often comes with a lot of conditions. It might not be worth it because it might not help. For the same amount of money, you could get a different feature, with not as many conditions, that could help you in a much larger way. It is about weighing what is really important and not focusing on the “bells and whistles”.

LTCD: Where do your clients get most confused when choosing a Long Term Care Insurance Policy?

Scott Olson: The inflation benefit is always the most confusing. How is this policy going to grow? There are so many options and they can use similar language. Many people who look at long term care insurance get stuck here. It can be hard to not only compare inflation benefits from policy to policy but also to figure out which one you need or want.

Tomorrow we will discuss the Five Foundational Features that can be found in Scott’s book “Making Long Term Care Insurance Easier.” For more information on Scott or his book, please feel free to email our blog or visit Scott’s website at ltcinsuranceshopper.com.