About Long Term Care

By long term care, we are referring to what is called "Chronic Custodial Care," vs. "Acute Medical Care" (Doctors, hospitals, medications). Neither Medicare nor your Medical policy will pay for custodial care. The cost of care is very expensive; the current national average is $62,000/year, and previous records indicate these costs are doubling about every 15 years ($124,000/year). (Long Term Care Insurance policies have an Inflation Protection Option that is designed to keep pace with this accelerating expense.) Although no one can foresee the future, the national statistics specific to this risk suggest that approximately 1 in 2 women, and 1 in 3 men will need some form of care before they pass away; and for couples, 7 out of 10 will experience one of the spouses needing care.

About Long Term Care Insurance

Long term care insurance is intended to cover some or all of the cost of this care, regardless of where care is received. These plans are "triggered" when a policy-holder experiences an inability to live independently which requires assistance in 2 of 6 "activities of daily living," or when it is determined that care is needed due to "cognitive impairment" (Alzheimer's, or some other form of dementia, which no medical policy covers).

The cost of this insurance can vary greatly, as there are a number of building blocks or strategies that go into designing a LTC plan, (see "Kip Tip" video on plan design--excuse the commercial) and premiums will be based on these various selections. Among the elements for consideration should be your current age and health, marital status, in what state or part of the state you plan to retire, other available financial and family resources, family traditions, etc. Since premiums are initially based on the cost of care in your area, (click on your state) it will be important to determine that as well. Also part of the equation is the fact that there is no one company that is always the most competitive, and that, in this industry, it really pays to shop. Usually, it is best to reach a balance between how much risk to transfer to the insurance company, and what you feel you want to comfortably afford. Obviously, it is critical to have a conversation with an independent and knowledgeable Agent who can review the various options with you and help you sort out which seems to be a "best fit" for you and your situation.

Underwriting

One of the Consultants Group's "best practices" is that we determine ahead of time what underwriting challenges we will encounter with each company before we e-mail our quote. This is done in order to provide you with the most accurate reflection of each company's premiums. However, there are certain uninsurable conditions that would preclude someone from purchasing this coverage. (By completing our Qualifying Questionnaire and e-mailing it to us, along with your contact information, we will obtain an underwriters opinion on your health qualifications for you.) Or, you could give a quick call to our specialists, who can often answer your questions over the phone.

Because today's long-term care insurance policies offer a variety of features and benefits, it pays to take your time when choosing your policy. In this section we will help you take a look at what makes up a good policy and the benefit options available to you.

The Consultants Group

We are a nationwide consortium of independent LTC insurance specialists/brokers, each with many years of experience, and we represent the top 10 companies in the field. Everything we do is through the Internet, the phone, and the mail; No agent need come to your home. Our clients tell us that our unique system has created the most non-intrusive, innovative, and satisfying experience they have had in purchasing any insurance. We call this the Internet Advantage. With our proprietary "comparative quote and analysis" system, our clients often see savings of 25-35% on their premiums.

What's next?

If you would like to look further into our service, go to the "get a quote" tab on our web site and fill out the information questionnaire. With that, one of our consultants will contact you by phone. We will need to spend 15-20 minutes discussing your situation and options, as well as plan design and underwriting. It may be advantageous for us to web conference with you to be sure you have all the information you need.

Based on that feedback, we will then do an analysis involving the top 10 companies to determine which 3-4 major plans would be best suited to your situation. Via E-mail, we will provide the final results of our analysis regarding the policies, product comparisons, premium differences, etc. We will then follow that up by phone in order to fully explain your options. This format provides you with an individualized analysis specific to your needs and situation.

By serving as your Consultant, we "coach" you through the LTC insurance "maze" in order to provide you with the information and expertise necessary to make a confident decision. At that time we can provide you with any hardcopy information or brochures you require.

Other informational resources

To see what MSN MONEY, Kiplinger Financial, Dateline, and others have to say about long term care insurance, visit our THE LTC LIBRARY site.

What Congress is saying about long term care

Perhaps Congresswoman Nancy Johnson stated it best, when she reflected the sentiment of Congress by stating that said that it is not the government's job to pay for long term care expenses; rather, it is up to individuals to be personally responsible. And she further expressed concern that the government needed to "help families secure access to the long-term care their loved one's need, not break the backs of our kids to pay for it." With that in mind, Congress has enacted three recent measures designed to facilitate that.

The first was the Deficit Reduction Act, passed in 2005, which closed the Medicaid loopholes that had been allowing some people to transfer their assets so that the government (read, tax payer) can pay for their care. However, Medicaid is designed to provide welfare, not to support someone with assets. This legislation closed those loopholes, and also supported the promotion of Partnership Plans to many additional states.

Secondly, they began a state-by-state educational campaign by the Health and Human Services Department called, Own Your Future, providing information about planning for Long Term Care, and promoting LTC insurance as a significant solution to this problem. Included in this campaign are state-wide mailings and a U.S. Department of Health and Human Services web site for Long Term Care.

And the third thing they did was to pass the Pension Protection Act of 2006, a wonderful piece of legislation that contained a provision that reflects where congress would like to go with long term care insurance, but just can't afford to do so yet for the general public. In this legislation, all retired Safety Officers (police, fire, etc) will be allowed to deduct up to $3,000 of their LTC insurance premiums as an "above-the-line" tax deduction. In other words, the government understands that it makes more sense for them to partially subsidize LTC insurance premiums than it does to obligate people spend through their assets and then go on Medicaid. Obviously, Congress has done the math, looked at the risks and costs, and is quite concerned. More on that to come later, I am sure.