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LTCi Pays – Have the Conversation Now!

March 3, 2016 by Honey Leave a Comment

The following piece was authored and is re-published here with the permission of my dear friend and colleague Tobe Gerard.

Tobe makes two points. The first is that long-term care insurance (LTCi) policies are normally purchased many years in advance of being needed. We are now seeing “the tip of the iceberg” of claimants who need to collect from their LTCi. For the foreseeable future, we should see annual increases in the number of claims being filed and the amount of money being paid out for LTC.

The second point Tobe is making is that it is typically a son or daughter who assists with the claim. LTCi claims are not onerous, but policyholders are typically not able to manage them alone. Letting kids and other trusted individuals know you own LTCi is sometimes difficult, but worth it. Knowing a parent owns LTCi proves to be a balm and a source of extra piece of mind and security for all involved.

Here is Tobe’s excellent blog:

According the the American Association for Long-Term Care Insurance, long-term care insurance (LTCi) companies paid $8.15 billion in claim benefits to 260,000 policyholders in 2015. That number is 4% more than what was paid out in 2014. We are all living longer, and though your clients hope to never have to use their policies, the good news is that policyholders and their families are benefiting from owning this important insurance protection. When the rubber hits the road, LTCi policies are paying out!

With that in mind, many advisors encourage their clients to have “the long-term care conversation” with their adult children. It’s not an easy conversation, but it is an important one. Having this conversation early allows adult children to know that their parents have thought things through and have a plan in place. Among other things, breaking the ice by having this conversation early allows adult children to know their parents own LTCi policies. The reality is that in most instances it will be the adult children who will be involved with filing the initial LTCi claim and, in many cases, supervising the care that will be required over time. Adult children want to learn what their parents have in mind. Owning a LTCi care policy should never be kept a secret!”

The Importance of Planning for Long-Term Care

January 13, 2016 by Honey Leave a Comment

Forbes has recently published some explicit, straightforward and accurate columns on long-term care (LTC). These columns are a great service to the public and a refreshing break from the typically neglected, error-riddled, negatively slanted coverage of LTC.

Wade Pfau is a professor at The American College, Principal at McLean Asset Management, and Forbes contributor.

Mr. Pfau is my new LTC hero!

In his December 22, 2015 Forbes column on the importance of planning for LTC, he states most retirement income planning is focused on income needs and market volatility and longevity.

A major retirement risk, which receives far less coverage and is often ignored, is that of spending shocks: having to spend significantly higher amounts than planned. Mr. Pfau states, “Long-term care (LTC) spending represents one of the most severe spending shocks that can impact retirees.”

He continues, “An expensive LTC event could derail an otherwise well-built retirement plan. This problem is growing as people are living longer, since it becomes more likely that care will be needed for longer as well. Older individuals suffer from higher rates of physical and cognitive problems, and they may have fewer family members or friends who are in a position to provide sustained daily assistance.”

I love that Mr. Pfau also accurately describes the psychology of denial that causes the failure and refusal to properly plan for LTC. He goes on to explain that lack of LTC planning “can create strains as long-term care depletes household assets, bankrupts a surviving spouse, or adds burdens for other family members who may end up making large sacrifices to provide care.”

Mr. Pfau then continues to clearly, accurately describe what LTC is.

I am very grateful to Mr. Pfau and believe this column is of great value to readers.

Very Useful New Book by Phyllis Shelton

May 28, 2013 by Honey Leveen Leave a Comment

My good friend Phyllis Shelton has written a new book “Protecting your Family with Long-Term Care Insurance.”

Senior Market Advisor Magazine deemed Phyllis to be among the top ten professionals in the long-term care insurance industry nationally. She has been featured and quoted extensively by the mainstream media and is a nationally recognized speaker. I’ve known Phyllis for years consider her reputation beyond reproach. She uses folksy charm and down-home TN humor to convey technical information in an easy-to-understand, thorough manner.

To learn more about Phyllis, visit www.ltcconsultants.com

If you aim to be a superbly well-informed LTCi buyer, or you are a financial advisor who wants your thirst for detailed insight into LTCi products quenched in an entertaining manner, you will surely enjoy Phyllis’s latest book. Here’s the review I gave this book on Amazon.com:

“Phyllis Shelton is regarded as one of the most credible, trustworthy experts in the field of long-term care insurance (LTCi) today. This book lives up to this reputation. Ms. Shelton explains technical aspects of LTCi in an easy-to-understand fashion. The reader will learn how to understand LTCi comprehensively, on a deeper level than is possible from typical LTCi sales materials or media coverage. The info she gives is accurate and timely. This book is “must” reading for any consumer who wishes to make an informed, confident, empowered decision about LTCi. The book is enjoyable. Much of Ms. Shelton’s down to earth, TN humor is evident, and she uses many relevant, first-hand examples.”

Do Long-Term Care Insurance Carriers Pay Their Claims? You Bet!

August 24, 2012 by Honey Leave a Comment

A US Department of Health and Human Services, Office of Disability, Aging and Long-Term Care Policy (April 2010) study sought answers to the following:

Is the denial of benefits to policyholders making claims on their policy appropriate?

Is the approval of benefits to policyholders making claims on their policy appropriate?

Their findings are based on the analysis of 1,200 claims from companies accounting for 70% of industry claims.

“An estimated 200,000 policyholders are currently claiming benefits.”

“The review indicated that everyone who was eligible to receive a payment for benefits under their policy, in fact received it, and those who the insurance company determined did not meet their policy triggers did not rceive payments.”

“There are many reasons that a payment might be denied or delayed after an insurer is approved for benefits based on the clinical criteria of their policy. These reasons include provider ineligibility, elimination period not met, coordination of benefits (other payment source), and lack of documentation about service costs or bills.”

“Insurance companies tend to err slightly on the side of approving claims that may not meet policy eligibility criteria.”

“The clinical audit team found that 19% of the sample had not met their elimination period within six months of notification of clinical benefit eligibility, while another 14% had not submitted bills within the same timeframe.”

“Upon a blind review of cases, clinical auditors would have approved 65% of the cases for benefits, denied 30% and would have required additional or clarifying information in 5% of the cases. Put another way, the clinical auditors would have approved 5% fewer cases than the insurance company adjudicators…”

Re-published from the 2012-2013 Sourcebook for Long-Term Care Insurance Information (Thousand Oaks, CA: American Association for Long-Term Care Insurance, 2012).

Long-Term Care Insurance Pays!

August 22, 2012 by Honey Leave a Comment

According to page 22 of the 2012-2013 Sourcebook for Long-Term Care Insurance Information (Thousand Oaks, CA: American Association for Long-Term Care Insurance, 2012), the nation’s 10 leading long-term care insurance (LTCi) companies paid over $10.8 million a day in claim benefits in 2010!

Benefits paid by just these insurers totaled nearly $4 billion for the year!

During a typical 30-day timeframe, these insurers paid benefits to 134,430 individuals.

Imagine the improvement in dignity, options and choices LTCi ownership gave these policyholders and their families!

Request a Free, No-Obligation LTCi Quote

LTCi Pays – Have the Conversation Now!

The Importance of Planning for Long-Term Care

Very Useful New Book by Phyllis Shelton

Do Long-Term Care Insurance Carriers Pay Their Claims? You Bet!

Long-Term Care Insurance Pays!

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