Archives for April 2011

Affluent People Want LTCi (Long-Term Care Insurance) Badly

April 29, 2011 by Honey Leave a Comment

A new study by the Urban Institute dated March 29, 2011 (2100 M Street NW Washington, DC 20037) shows that the affluent are not affluent by accident.

Of all the excuses I hear, “I’ll just self-insure for LTC (long-term care)” ranks first. It definitely takes first place in both the most frequent and irrational excuse categories.

Of course, people of all income levels often give me this excuse…and many others. What this new survey demonstrates, however, is that affluent people (those making over $100,000/year) are more likely to buy LTCi.

According to the survey, Americans aged 55 years and older with annual incomes over $100,000 are twice as likely own LTCI (19.3% versus 10.3%)

In my world, “I’ll just self-insure” is code for “I think I’ll take that diving vacation in Tahiti. It’s much more fun than talking about responsible LTC planning now to avoid stress, strife and possible financial catastrophe later.” It could also be code for, “I can’t watch football games on the old 40″ HD TV anymore. I need a bigger, newer TV now!”

In short, earners of over $100,000/year are more likely to say, “I think I’ll take that diving trip to the Bahamas or the Florida Keys this year, not Tahiti. This way, I can still see magnificent sea creatures, relax, and have a great vacation. And I can afford reasonable $1,000-3,000/year LTCi premiums at the same time.”

I Love You, Ron Hagelman

April 21, 2011 by Honey Leave a Comment

Here’s a link to Ron Hagelman’s column in the March, 2011 edition of Broker World Magazine.

An excerpt from Ron’s piece:

“As mentioned in earlier columns: There is an elephant in the room that will not go away. Its presence should be crowding out any breathing room remaining to maintain a seemingly impenetrable wall of self-deception. In recent speeches, our Health and Human Services Secretary has concluded her long term care conversation by clearly defining the presence of the massive pachyderm: ‘In the years to come, nearly every American family will have a grandmother or a father or a sister or a son who needs daily help because of a disability.’

As one of those involved in sales every day, I remain puzzled, perplexed and peeved at the amazingly resilient ability to ignore the size, girth and smell of our extra large peanut-eating friend. It must somehow appear not to be a real elephant. It must miraculously be seen as only the illusion of an elephant.

The only way I can explain the persistent ability to so completely ignore the obvious is that this must be the proverbial pink elephant. An elephant that can appear and disappear based on one’s level of alcohol intake. But don’t be fooled, that pink elephant is on a 24/7 eating binge!

Again quoting the HHS ringmaster: ‘Approximately 10 million Americans need long term care services and support, ranging from having an aide visit for a few hours a week to living in a nursing home with around the clock care. As Americans age, that number will rise steadily; by 2020, the estimate is that 15 million Americans will need some kind of care…We know that one out of six people who reach the age of 65 will spend more than $100,000 on long term care.’”

Ron, I love you. Thanks for making me laugh out loud. I read this to my husband, and although he is not involved in the insurance industry, he enjoyed a hearty laugh, too – especially because he HAS long-term care insurance.

Although my colleague Ron writes for a trade journal, “lay” readers will easily understand it. I hope you’ll read Ron’s column. Be amused, but take what he says to heart.

Policing the Media, Again

April 13, 2011 by Honey Leave a Comment

Here are my comments about a piece in the April 13, 2011 StarTribune, titled, “Keep those fingers crossed: long-term care insurance“. The reporter, Katy Read, is trying to do the right thing but failing:

Katy, you have attempted to do the right thing by imparting some truthful and accurate information about the odds of needing long-term care and the cost of LTC insurance (LTCi).

Unfortunately for the public you strive to help, you have sandwiched this info into a bad spin. You have erroneously stated, twice, once in the first paragraph, that LTCi is expensive. This indicates to me that you, like the public you seek to inform, are in denial that you might need care. If this is what you think, even if subconsciously, even a $100/year LTCi premium might be too high.

The truth is that contrasted with how likely it is any of us will need care (which you correctly state in your article), and how many thousands upon thousands of dollars people are collecting from their LTCi, the premium is paltry.

It would be great if reporters could get the perspective correct and stop unfairly maligning this essential coverage. I say LTCi is essential, but this is only if one wants to make certain they have all their care choices and options and wish to preserve their wealth without being forced to liquidate it under penalty or stress. If you won’t mind suffering such consequences, you don’t need LTCi.

It would be great if you could report on how easily, well and often these policies pay, and how much better life and legacy turns out for LTCi owners and their families when care is needed.
Honey Leveen
www.honeyleveen.com

False LTCi Coverage Harms the Public

April 1, 2011 by Honey Leave a Comment

Main Stream Media (MSM) almost always casts Long-Term Care Insurance (LTCi) in a negative light. I seldom read an MSM article about LTCi that dispels myths.

The recent Prudential survey I blogged about on March 28, 2011 found that most people lack much factual information about LTCi. My experience with clients strongly supports the survey findings.

Knowledge is power. Lack of knowledge leads to fear and LTCi bashing. What a disservice this is to the public.

Lately, for example, the media seem to enjoy harping on the withdrawal of Met Life and others from the LTCi marketplace. They fail to mention that companies like LifeSecure and Humana are entering the LTCi marketplace. We’re obviously in a harsh economy, and many companies across all industries are withdrawing from markets or closing down. But today’s economy has not caused a single LTCi carrier to go belly up and default on its obligation to policyholders. MSM doesn’t mention this. Rarely have I seen MSM articles describe how beautifully LTCi pays even though such stories are abundant.

Another common thing MSM does to cast LTCi in a bad light is to refer to LTCi as expensive. Simple math that anyone can do on a calculator shows that if or when long-term care is needed, policyholders typically re-coup every dollar paid in premium within a few months. LTCi premiums are far more stable than those of other insurance policies. Contemporary LTCi may have rate hikes but they are uncommon and limited by the regulatory authorities. So which is preferable? Paying affordable LTCi premiums regularly and being able to access the long-term care of your choice, or hemorrhaging savings to pay for care?

Why does MSM like to diss the LTCi industry so much? I believe it’s mostly due to lack of knowledge, which in turn leads to fear.

I encourage you to visit www.honeyleveen.com and go to the References page. You will find links to several reputable sites that provide accurate statistics and information about LTCi.

Family Struggles to Provide Care to Loved Ones

April 1, 2011 by Honey Leave a Comment

This March 27, 2011 Florida Times-Union article by Roger Bull titled “Many Struggling Financially to provide care for elderly family members” poignantly describes the hardships that middle-class families endure when their needful parent does not own long-term care insurance (LTCi) yet needs long-term care.

This article does mention using long-term care insurance to successfully fund long-term care needs and avoid the type of hardship his article describes. Unfortunately, Mr. Bull seems subject to the same lack of information about LTCi that the general public has. He spends the majority of his article describing the hardship of his people needing care, but he devotes only a minor amount of space to LTCi protection. He describes the $122/month LTCi premium as being high but fails to mention the many thousands of dollars paid out if LTC is needed. In another example, he states LTCi will pay for a limited amount of care as if this were a bad thing. LTCi premiums are based on what you need and what you can afford. No LTCi policy, no insurance policy in fact, pays for all expenses. All are limited. It is not necessary to have an insurance policy that pays for all costs. As long as an LTCi policy is paying enough for you to 1) access the care you choose, when you need it and 2) conserve your wealth, even if you have to cover some of the cost of care. Yes, LTCi is limited, and it can also benefit families significantly.

I struggle to educate the uninformed public and the uninformed mainstream media every day! It’s very unfortunate that so many myths about LTCi continue.

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Archives for April 2011

Affluent People Want LTCi (Long-Term Care Insurance) Badly

I Love You, Ron Hagelman

Policing the Media, Again

False LTCi Coverage Harms the Public

Family Struggles to Provide Care to Loved Ones

From My Blog

Podcast Illuminates LTC Need

LTCI is Magical at Time of Need!

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