Urban Institute Archives - Long Term Care Insurance Expert | Honey Leveen

Coping With Caregiving

April 27, 2012 by Honey Leave a Comment

On April 30, 2011, I was honored to be interviewed by Jacqueline Marcell, author of Coping with Caregiving , speaker and host of the radio show by the same name.

The recent Urban Institute study I blogged about states that only about 10% of us over 55 years of age own LTCi.

Ms. Marcell and I talk about how it is proven that the public has mis-information about LTCi costs and likelihood, and what can be done about this.

I’m biased, but I think our conversation is engaging and useful. I want to encourage you to listen to my interview (sorry, interview no longer available on site) and share it with those you care about, who still have not planned responsibly for the possibility of needing long-term care.

UK on Collision Course with Long-term Care (LTC) Costs

July 7, 2011 by Honey Leave a Comment

A newly released report by the Alzheimer’s Society (The Dementia Tax Report 2011. Alzheimer’s Society, Devon House, 58 St Katharine’s Way, London E1W 1LB) minces no words describing the collision course between the UK economy and its growing long-term care needs.

Although the report studied the British, the many similarities between our two countries and cultures make the study relevant here.

The study found that only 3% of those with dementia own long-term care insurance (LTCi). The LTCi industry has existed in Britain for quite some time, but it is not as fully evolved as the LTCi industry in the US, where about 10% of us own LTCi, as my blog on the new Urban Institute study confirms.

The Alzheimer’s Society study (p. 3) states that “Despite the hard work of many care staff and care providers there are many thousands of people who cannot access the quality care and support that they need to have a good quality of life. Latest reports from the Equality and Human Rights Commission, Age UK and others show that the system is not simply in need of repair but is fundamentally broken.

There are currently 750,000 people living with dementia in the UK and this number will grow to over 1 million by 2021. Two thirds of people living in care homes and one quarter of people in hospitals are people with dementia.”

Yow!

Interestingly, but not really surprising, the survey asked British respondents why they did not own LTCi. They gave the same excuses we Americans do: they didn’t know about it, they didn’t expect to need care, and LTCi is too expensive. In my March 28, 2011 blog I reported similar results of Prudential’s recent study.

Of course, LTCi is not too expensive. “LTCi is too expensive” is simply an excuse people give to avoid having a conversation about responsible long-term care planning. Here’s the simple math. Say your premiums are $2,000/year. Say you need to collect from your LTCi in 20 years (pick any number and the math. is the same). From your $40,000 investment, you will collect over $60,000 (in today’s dollars) from your LTCi policy when you need care for ONLY ONE YEAR. According the US Department of Health and Human Services, the odds of needing some type of long-term care at age 65 are at least 70%.

If you don’t yet own LTCi, please take heed of these warnings and act responsibly – NOW!

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.”

Dear Abby tackles long-term care issues

January 2, 2011 by Honey Leave a Comment

In her December 19, 2011 column, quoted completely, below, Dear Abby published a letter about someone who is 99.9% likely to NOT own long-term care insurance (LTCi). I say this not just because statistically, only 10% of Americans in optimum age range and income brackets do (see my blog on the Urban Institute report). If the lady described below owned LTCi, she might have been less hesitant to access the long-term care she sadly, and very evidently needs. LTCi would have pumped money with which care could be paid for. I informally observe that when insurance pays, people get the right kind of care earlier and more often.

The situation below is very sad, and largely avoidable when long-term care planning has been done. Unfortunately, we see similar situations very often.

“DEAR ABBY: I have an elderly neighbor I have been friends with for many years. Over the past several years she has had numerous medical problems. I have done everything I can to be her friend. I do things around the house, bring her meals, whatever I can. She has no family and only one other friend besides me.

She is depressed and stays in bed most of the day, which contributes to her aches and pains. I keep telling her she needs to get up and walk or her pain will get worse. It has reached the point where she’s so nasty about everything that I don’t even want to talk to her.

I understand that she’s scared and feels beaten up. I try to talk about things that are noncontroversial — happy things. It doesn’t work. She turns everything into an argument. I don’t know what to do. I hate to ignore her, but it’s really taking a toll on me. Am I a fair-weather friend? — TRYING TO BE A GOOD NEIGHBOR IN MASSACHUSETTS

DEAR GOOD NEIGHBOR: No, you are a caring friend. Your elderly neighbor is ill, and she may be becoming demented. Because she is no longer able to care for herself or her home, contact the nearest hospital or senior center and ask to speak with a social worker on staff. The woman you describe may need more help than you can give her, from people with the training to do it.”

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Coping With Caregiving

UK on Collision Course with Long-term Care (LTC) Costs

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

Dear Abby tackles long-term care issues

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