Long-Term Care Insurance

Click here to read a great article from The Wall Street Journal on the consequences of living a long life. It is enlightening reading.

Long-term care insurance has been one of the fastest growing segments in the insurance industry for the past five years. In order to keep up with the demand for this coverage as well as the dynamics of the industry, a company that specializes in long-term care insurance is needed. Henderson Insurance is this company. As an independent agency, we represent many of today's major carriers. This allows us to find the coverage and the carrier that makes sense for each client's particular situation.

What is long-term care?

Services provided to people who are no longer able to take care of themselves due to chronic illness, injury, or the effects of aging. Care is typically provided in your home, a facility, or other community-based setting.

Did you know?

• The actual risk for needing Long-Term Care (both nursing home and home health care) services is greater than 50%.¹
• 40% of individuals receiving long-term care assistance are between the ages of 18-64.²

Why is long-term care a growing concern?

1. People are living longer. That's the good news. The bad news is that people are living longer. The fact is the longer you live the more likely you will need care.
2. Families are geographically dispersed and women who traditionally took care of parents are now working outside the home.
3. Government systems are already overburdened. This will only get worse once baby boomers begin to retire. The federal government has recognized this and they are offering LTC insurance to federal employees. We feel that by offering their own long term care program, it appears the government is sending a crystal clear message: Get long-term care insurance coverage because we will not be making this an entitlement.
4. The cost of care keeps going up.

Nursing home average annual costs range from³:

Currently, the average length of stay in a nursing home is 2.8 years⁴.

For the cost of care in your area, Click Here.

What Are the Benefits of Long Term Care Insurance?

Read this informative newsletter from Holland + Knight to help determine if Long-Term Care Insurance is right for you.

Long-term care insurance gives you peace of mind when you need care. A policy can help:

• Preserve your independence
• Maintain your standard of living
• Protect your assets
• Preserve your freedom of choice

Policy Design

Choosing a policy that works for you and your family is typically a five-step process.

Step 1. Choose a Daily Benefit: Ranging from $100 to $500 per day, this is the amount of benefit available to reimburse actual charges. This daily benefit is typically chosen based on the average cost of care in your area.

Step 2. Select a Benefit Period: Typical benefit periods include 2, 3, 4, 5, 6, 10 Year or a lifetime of benefits. This is how long the insurance carrier will pay for your care - you decide which benefit period makes sense for you.

Step 3. Select Inflation Protection: This option determines how your benefits can increase to keep pace with inflation over time. The recommended inflation option* is determined by your age.

Step 4. Choose an Elimination Period (Deductible): This is the number of days that you elect to pay for care before your policy begins to pay benefits. The standard elimination period is 90 days.

Step 5. Optional Benefits and Riders: Based on the select policy design, different carriers offer riders and optional benefits that may complement your coverage.*

Policy and carrier recommendations are made based on your age, health, cost of care in your area, marital status and financial situation. There is a lot to consider before purchasing a policy. It is important to talk with an insurance professional to discuss your options.

*At additional cost.

1. Health Insurance Association of America 1995
2. American Academy of Actuaries, January 1999
3. MetLife Market Survey of Nursing Home and Home Care Costs, September 2005
4. "LTC Choice: A Simple, Cost-Free Solution to the LTC Financing Puzzle"-Center for Long-Term Care Financing, September, 1999