Broker Check

Long-Term Care

Americans are living longer today, thus we need to take time to understand the concept of Long-Term Care Insurance. Long-Term Care (LTC) is different from traditional medical care. LTC helps one live as he/she is now. Sometimes LTC services may not help to improve or correct medical problems. LTC services may include help with one's requirement of daily living, home health care, respite care, hospice care, adult day care and care in a nursing or assisted living facilities.

Physical illness and/or disability may leave someone needing assistance with the activities of daily living for a defined period or an on-going period. Cognitive impairments, such as Alzheimer's Disease, usually need permanent supervision, protection and verbal reminders for everyday activities. Most insurance companies will qualify a policy holder when they have two or more Adult Daily Living (ADL) conditions or a cognitive disease. The treatment could occur at:

  • Your home for both "skilled care" & "home care"
  • Assisted living facilities
  • Nursing homes
  • Adult day care
  • Hospice

Not everyone can qualify for a stand-alone, Long-Term Care insurance policy based on the underwriting process. Should a stand-alone Long-Term Care policy not be feasible for your current health condition and/or financial plan, Keim Financial Services can work with you to find an alternative life insurance or fixed annuity product that may enable you to receive Long-Term Care benefits.

A well-written Long-Term Care policy should provide the following benefits:

  • Pay out claims tax-free (under current federal law)
  • Have an annual inflation rider of 3% to 5% compounded to cover cost of living increases
  • Will enable your personal physician to qualify you to receive Long-Term Care benefits
  • Provide payment options such as 10-year, 20-year, to age 65 or lifetime to best match your financial picture
  • Offers a "share plan" for one's spouse to use benefits in the health spouse's Long-
  • Term Care policy
  • May offer a "cash first" during the 90-day normal elimination period
  • Enable the LTC policy holder to better control their treatment choices

Who needs Long-Term Care?

  • Car, boating, motorcycle and RV accidents
  • Hunting, skiing and other recreational accidents
  • Falling off ladder and other home accidents
  • Stroke victims (remember that approximately 33% of these are under the age of 65)
  • Cancer, diabetes, chronic renal failure, bone disease, chronic heart disease, etc.
  • Cognitive disorders, senile dementia and Alzheimer disease
  • Chronic arthritis, osteoporosis, broken bones, Kidney disorders and circulation problems

Risks involving Long-Term Care Policies - Why work with your Financial Professional to assess:

  1. The financial strength of the issuing insurance company
  2. The customer service ability of the issuing insurance company
  3. What are the "Partnership Protection" requirements of your State of Residence? Does the policy you are considering qualify as a "Partnership Protection" policy? Is your financial professional qualified to sell a "Partnership Protection" LTC policy?
  4. Requirements and waiting period for qualifying tor receive your Long-Term Care benefits
  5. Restrictions on where (i.e. home, hospice, adult day care, assisted care facility, nursing home) the Long-Term Care benefits may be used
  6. Riders such as sharing one's Long-Term Care benefits with an ill spouse, lifetime benefits and a compounded inflation rider
  7. Two significant federal laws that impact Long-Term Care are The Pension Protection Act of 2006 and The Deficit Reduction Act of 2006. Future legislation may be passed.
  8. The way LTC services are provided are changing

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