Ultimate guide to retirement
What is long-term care insurance?
A long-term care insurance policy doles out money to help cover the costs of nursing-home care, an
assisted-living facility or at-home assistance if you are no longer able to take care of yourself.
The allure of long-term care is obvious: It's the rare bird (or baby boomer) who doesn't worry about
how he or she will afford care later on. And if you're counting on Medicare, you're out of luck. Medicare
doesn't offer extended long-term care coverage. (Medicaid does, but only very low-income retirees are
eligible.)
Should I buy a long-term care policy?
The question of whether to buy is ultimately a question about your financial security. Imagining
yourself so frail and vulnerable that you need to live in an institution or rely on a stranger's help is
deeply unsettling. If you let an insurance agent frame the decision in those terms, you'll buy a policy in
five seconds.
Instead of freaking out, focus on the potential financial need. When calculating how much you'll need
to save for retirement, you may want to add in enough to pay for several months of long-term care.
That way you'll have some assets standing between yourself and Medicaid - and therefore more
options. And the more you save, the easier it will be to pay for long-term care insurance if you want it
when you're older.
If you are already in retirement or close to it, ask yourself whether you have enough assets to bother
protecting - and enough to live on in retirement. If you are scraping by, you may be so pinched that
you'll have to drop a long-term care policy before you need to use it.
Still feeling confused? A good fee-only financial planner - one who charges by the hour for advice -
can help you think through this decision and determine whether buying a policy is a good idea for you.
Long-term care insurance is very expensive - the annual premium can easily be $2,500 or more a
year - and many insurers have jacked up initial premiums by 20% or more over the past decade.
What should I look for in a long-term policy?
Figure out exactly what your policy will and will not allow. For example, if you buy coverage for home
care, will you have to use an agency, or can you hire an independent caregiver? If the policy covers
assisted living, does it cover the cost of housing or only the care you receive? Also, ask the agent
which facilities in your area the policy would cover - and which it wouldn't.
When comparing policies, factor in how many customer complaints each insurer has received.
Also, check out the insurer's history of premium hikes. Some state regulators can tell you about
those. The fact that an insurer has imposed many price increases in the past, however, does not
necessarily mean that it won't raise prices again. And one that hasn't raised rates still might.
Finally, you'll have to live with the policy you buy for decades, so choose a financially strong company.
Before you purchase a policy, ask the agent to give you the firm's latest financial strength grade from
one of the major rating services, such as Moody's Investors Service or Standard & Poor's. An A rating
or higher from Standard & Poor's, or an AA ranking or better from Moody's, is a good indicator of
financial strengthM
What is long-term care insurance?
A long-term care insurance policy doles out money to help cover the costs of nursing-home care, an
assisted-living facility or at-home assistance if you are no longer able to take care of yourself.
The allure of long-term care is obvious: It's the rare bird (or baby boomer) who doesn't worry about
how he or she will afford care later on. And if you're counting on Medicare, you're out of luck. Medicare
doesn't offer extended long-term care coverage. (Medicaid does, but only very low-income retirees are
eligible.)
Should I buy a long-term care policy?
The question of whether to buy is ultimately a question about your financial security. Imagining
yourself so frail and vulnerable that you need to live in an institution or rely on a stranger's help is
deeply unsettling. If you let an insurance agent frame the decision in those terms, you'll buy a policy in
five seconds.
Instead of freaking out, focus on the potential financial need. When calculating how much you'll need
to save for retirement, you may want to add in enough to pay for several months of long-term care.
That way you'll have some assets standing between yourself and Medicaid - and therefore more
options. And the more you save, the easier it will be to pay for long-term care insurance if you want it
when you're older.
If you are already in retirement or close to it, ask yourself whether you have enough assets to bother
protecting - and enough to live on in retirement. If you are scraping by, you may be so pinched that
you'll have to drop a long-term care policy before you need to use it.
Still feeling confused? A good fee-only financial planner - one who charges by the hour for advice -
can help you think through this decision and determine whether buying a policy is a good idea for you.
Long-term care insurance is very expensive - the annual premium can easily be $2,500 or more a
year - and many insurers have jacked up initial premiums by 20% or more over the past decade.
What should I look for in a long-term policy?
Figure out exactly what your policy will and will not allow. For example, if you buy coverage for home
care, will you have to use an agency, or can you hire an independent caregiver? If the policy covers
assisted living, does it cover the cost of housing or only the care you receive? Also, ask the agent
which facilities in your area the policy would cover - and which it wouldn't.
When comparing policies, factor in how many customer complaints each insurer has received.
Also, check out the insurer's history of premium hikes. Some state regulators can tell you about
those. The fact that an insurer has imposed many price increases in the past, however, does not
necessarily mean that it won't raise prices again. And one that hasn't raised rates still might.
Finally, you'll have to live with the policy you buy for decades, so choose a financially strong company.
Before you purchase a policy, ask the agent to give you the firm's latest financial strength grade from
one of the major rating services, such as Moody's Investors Service or Standard & Poor's. An A rating
or higher from Standard & Poor's, or an AA ranking or better from Moody's, is a good indicator of
financial strengthM
| What will a long-term care policy cover? It typically gives you payouts if you wind up having cognitive impairment - such as dementia or Alzheimer's - or if you physically can no longer perform some specific "activities of daily living" on your own. We're talking about feeding yourself, bathing yourself and so on. Payouts from the policy will help cover the cost of assistance to help you get through the basics of daily life. For example, the policy can pay for someone who stops by the house for a few hours a day or a few days a week. Or it can help with the cost of a senior day-care facility, an assisted-care setup or full-fledged nursing-home care How much will payouts be? As with all insurance, the payouts you receive are a reflection of the coverage you choose. Bear with us here; it's a bit complicated. When shopping for insurance, you - along with your LTC insurance agent - typically start by figuring out the daily cost of nursing-home care today. Next, you need to decide how many years of that coverage you would like. The bigger the number, the more expensive your policy. As a rule of thumb, the average amount of time spent in a nursing home (among folks who need that type of care) is about three years. Let's say you want to plan for care at $180 a day - the current national average - and you want the coverage to last for four years. That's $180 multiplied by 1,440 days, which equals $259,200. So, in the jargon of LTC, you would choose a policy with a lifetime benefit of $259,200. That doesn't mean you will be limited to drawing $180 a day for four years. Most plans just let you draw on the lifetime benefit: You can draw it down over 10 years or 10 months. That's your decision. All the company cares about is that your total lifetime benefit will not exceed that $259,200. Will payouts keep pace with inflation? Only if you pay for inflation protection - and you should. It is crucially important that if you purchase LTC insurance, you make sure your policy includes an annual inflation adjustment rider. It will do you little good to buy a policy today that has a $180 daily benefit if the cost of care rises to $400 a day or more in the future. The inflation rider will increase your daily benefit coverage by a set amount each year. To protect yourself, buy a policy with a benefit that increases by 5% compounded a year. Be careful: Don't go for "simple" interest. Inflation grows at a compounded rate. In 20 years, a $100 daily benefit would turn into $200 with 5% simple interest. Compounded, the benefit would be $265. How much will a policy cost me? It all depends on how big a lifetime benefit you choose and the level of coverage you want. You can add many different options to basic plans. But, in general, we're talking about an annual premium that will cost a few thousand dollars a year, at a minimum. And you will pay that for a long time: from the first year of your policy all the way through until you start drawing on the policy. That could be 30 years down the line. This is important: You will have to keep paying the premium when you are retired and likely living on a smaller income. If you stop paying your premium at any time, you can lose your coverage, including every penny you paid up to that point. If you doubt your ability to keep paying for the policy through retirement, you probably shouldn't buy it. The National Association of Insurance Commissioners (NAIC) suggests that you spend no more than 7% of your income on premiums. When do I stop paying premiums? When you receive benefits you typically are not required to continue paying your premium. But if you then stop receiving those benefits - say, you needed nursing-home care for just a few months, after an illness - you'll need to resume making premium payments once you are no longer drawing the benefit. |
GENERAL INVESTMENT STRATEGIES, METHODS, AND TECHNIQUES. A BETTER WAY TO BUILD WEALTH! When it comes to reliable investments, real estate investing is the
best wealth-builder in the world.
INVESTING / METHOD AND TECHNIQUES TO INVEST IN TODAY'S MARKET FOR A BETTER TOMORROW
STOCK MARKET: A WAY TO INVEST AND MULTIPLY YOUR MONEY. THE MARKET HAS THOUSANDS OF COMPANIES TO BUY STOCKS, Mutual Funds, Bond Funds, Annuity.
The market in which shares are issued and traded either through exchanges or over-the-counter markets.
REITs= REAL ESTATE INVESTMENT TRUST: A GREAT WAY TO INVEST IN REAL ESTATE WITHOUT TAKING A MORTGAGE LOAN
FOREX MARKET: THE LARGEST MARKET IN THE WORLD TO INVEST AND GET RICHER IF YOU USE THE RIGHT TOOLS
INSURANCE 101: THE IMPORTANCE OF INSURANCE IN SOMEONE'S LIFE. HOW TO SAVE MONEY ON YOUR INSURANCE PREMIUM? LEARN ABOUT THE 5 INSURANCE
POLICIES EVERYBODY NEEDS AND THE 15 INSURANCE POLICIES YOU DON'T NEED.
REAL ESTATE INVESTMENT SECRETS REVEALED, REAL ESTATE CAN HELP YOU GET RICHER THE QUICKEST, EASIEST
WAY POSSIBLE. HOW TO GET PRE-QUALIFY FOR A HOME LOAN? HOW DOES OWNER FINANCING REALLY WORKS
SMALL BUSINESS, METHODS, TECHNIQUES, AND STRATEGIES. Business structures 101. LLP, LLC, S-corp and C-corp: It's not just alphabet soup! A breakdown of what you
need to know, in layman's terms.
Mortgage Loans Modification: SAVE YOUR HOME, SAVE YOUR CREDIT, REDUCE YOUR MONTHLY PAYMENT, AVOID FORECLOSURE
HOME REFINANCE: 10 GREAT REASONS TO REFINANCE A PROPERTY. RATES ARE STILL NEAR HISTORIC LOWS, IT MAY BE A GOOD TIME NOW TO REFINANCE! SOUTH
FLORIDA CALL: 786-709-6577 -- WE'RE LICENSED MORTGAGE BROKER
AMERICAN BANKING SYSTEM: BANKING HISTORY; GREAT THINGS TO KNOW ABOUT THE AMERICAN BANKING HISTORY
BANKING AND FINANCE, COMMERCIAL BANKING: The fundamental functions of a commercial bank during the past two centuries
SAVING: THE SECRETS OF SAVING; WAYS TO SAVE A LOT OF MONEY AND GETTING RICHER. 66 WAYS TO SAVE MONEY
MONEY MANAGEMENT: Ten Resolutions to Make Your Financial Life Easier. 10 Ways to Avoid Overdraft and Bounced Check Fees
THE 16 DAYS THAT SHOOCK THE US ECONOMY IN SEPTEMBER, 2008. A shocking series of events that forever changed the financial markets.
AMERICA’S MONEY CRISIS / Bailout 101: What new law says. Here's a rundown of key provisions of the financial rescue plan that United State Senate voted, Wednesday October
1; and the house voted Friday October 3, 2008.
FORTUNE, CREATION AND INTRODUCTION: When you invest in stock, you buy ownership shares in a company. Before You Invest; Before undertaking any investment program,
it is critical that you assess your current situation and form goals. Evaluating a Stock, Creating an Emergency Fund
Trust Account: Definition of a Trust; Land Trust, Living Trust, Revocable Trust. In general, a "trust" is a legal entity that is able to own property and other assets.
best wealth-builder in the world.
INVESTING / METHOD AND TECHNIQUES TO INVEST IN TODAY'S MARKET FOR A BETTER TOMORROW
STOCK MARKET: A WAY TO INVEST AND MULTIPLY YOUR MONEY. THE MARKET HAS THOUSANDS OF COMPANIES TO BUY STOCKS, Mutual Funds, Bond Funds, Annuity.
The market in which shares are issued and traded either through exchanges or over-the-counter markets.
REITs= REAL ESTATE INVESTMENT TRUST: A GREAT WAY TO INVEST IN REAL ESTATE WITHOUT TAKING A MORTGAGE LOAN
FOREX MARKET: THE LARGEST MARKET IN THE WORLD TO INVEST AND GET RICHER IF YOU USE THE RIGHT TOOLS
INSURANCE 101: THE IMPORTANCE OF INSURANCE IN SOMEONE'S LIFE. HOW TO SAVE MONEY ON YOUR INSURANCE PREMIUM? LEARN ABOUT THE 5 INSURANCE
POLICIES EVERYBODY NEEDS AND THE 15 INSURANCE POLICIES YOU DON'T NEED.
REAL ESTATE INVESTMENT SECRETS REVEALED, REAL ESTATE CAN HELP YOU GET RICHER THE QUICKEST, EASIEST
WAY POSSIBLE. HOW TO GET PRE-QUALIFY FOR A HOME LOAN? HOW DOES OWNER FINANCING REALLY WORKS
SMALL BUSINESS, METHODS, TECHNIQUES, AND STRATEGIES. Business structures 101. LLP, LLC, S-corp and C-corp: It's not just alphabet soup! A breakdown of what you
need to know, in layman's terms.
Mortgage Loans Modification: SAVE YOUR HOME, SAVE YOUR CREDIT, REDUCE YOUR MONTHLY PAYMENT, AVOID FORECLOSURE
HOME REFINANCE: 10 GREAT REASONS TO REFINANCE A PROPERTY. RATES ARE STILL NEAR HISTORIC LOWS, IT MAY BE A GOOD TIME NOW TO REFINANCE! SOUTH
FLORIDA CALL: 786-709-6577 -- WE'RE LICENSED MORTGAGE BROKER
AMERICAN BANKING SYSTEM: BANKING HISTORY; GREAT THINGS TO KNOW ABOUT THE AMERICAN BANKING HISTORY
BANKING AND FINANCE, COMMERCIAL BANKING: The fundamental functions of a commercial bank during the past two centuries
SAVING: THE SECRETS OF SAVING; WAYS TO SAVE A LOT OF MONEY AND GETTING RICHER. 66 WAYS TO SAVE MONEY
MONEY MANAGEMENT: Ten Resolutions to Make Your Financial Life Easier. 10 Ways to Avoid Overdraft and Bounced Check Fees
THE 16 DAYS THAT SHOOCK THE US ECONOMY IN SEPTEMBER, 2008. A shocking series of events that forever changed the financial markets.
AMERICA’S MONEY CRISIS / Bailout 101: What new law says. Here's a rundown of key provisions of the financial rescue plan that United State Senate voted, Wednesday October
1; and the house voted Friday October 3, 2008.
FORTUNE, CREATION AND INTRODUCTION: When you invest in stock, you buy ownership shares in a company. Before You Invest; Before undertaking any investment program,
it is critical that you assess your current situation and form goals. Evaluating a Stock, Creating an Emergency Fund
Trust Account: Definition of a Trust; Land Trust, Living Trust, Revocable Trust. In general, a "trust" is a legal entity that is able to own property and other assets.
 | |  | |  | |  | |  |
LONG-TERM CARE INSURANCE
KNOWLEDGEFINANCIAL.COM
LONG-TERM CARE INSURANCE: What is long-term care insurance? Should I buy a long-term care policy?
What should I look for in a long-term policy?
What should I look for in a long-term policy?
CLICK HERE TO SEE --- the best products FOR LESS PRICE, from the world most prestigious companies.
Real Estate Investment, Home-Buying Guide, Home-Selling Guide, Mortgage Loan Modification to Avoid
Foreclosure, Home Refinancing Since Interest Rate has Dropped to the bottom low, Real Estate Financing No
Matter what you from the news you still can purchase, Begin buying process with Mortgage Pre-Qualification.
IF YOU NEED HELP TO BUY OR TO SELL A PROPERTY IN SOUTH FLORIDA ; LET A PROFESSIONAL LICENSED REALTOR
& LICENSED MORTGAGE BROKER ASSIST YOU. SOUTH FL. CONTACT Mr. ANTONY AT: 786- 709-6577
Real Estate For Sale, Commercial Real Estate, Miami Real Estate, Mobile Home, Florida Real Estate
BUY ALL YOU WANT RIGHT HERE; THE BEST QUALITY PRODUCTS FROM THE WORLD GREATEST COMPANIES AT
DISCOUNT PRICE. BARGAIN, BARGAIN!
Real Estate Investment, Home-Buying Guide, Home-Selling Guide, Mortgage Loan Modification to Avoid
Foreclosure, Home Refinancing Since Interest Rate has Dropped to the bottom low, Real Estate Financing No
Matter what you from the news you still can purchase, Begin buying process with Mortgage Pre-Qualification.
IF YOU NEED HELP TO BUY OR TO SELL A PROPERTY IN SOUTH FLORIDA ; LET A PROFESSIONAL LICENSED REALTOR
& LICENSED MORTGAGE BROKER ASSIST YOU. SOUTH FL. CONTACT Mr. ANTONY AT: 786- 709-6577
Real Estate For Sale, Commercial Real Estate, Miami Real Estate, Mobile Home, Florida Real Estate
BUY ALL YOU WANT RIGHT HERE; THE BEST QUALITY PRODUCTS FROM THE WORLD GREATEST COMPANIES AT
DISCOUNT PRICE. BARGAIN, BARGAIN!
The Ultimate Retirement Guide for Everyone; Retire Rich,
Retire Early.
THE BEST RETIREMENT GUIDE EVER; WHAT ARE 401K,
ROTH 401K, INDIVIDUAL 401K, 403B, 457 PLAN, THRIFT
SAVINGS PLAN.
What is a SEP IRA? What is a SIMPLE IRA? --- SEE BELOW!
Long-term care insurance?
Is a long-term care insurance policy really provides money
to help cover the costs of living if you are no longer able to
take care of yourself.?
SOCIAL SECURITY RETIREMENT GUIDE. HOW DOES
SOCIAL SECURITY WORK?
What is the importance and benefits of life insurance in real
life, and at retirement age?
Pension Plans / IRA / INDIVIDUAL RETIREMENT ACCOUNT.
What is an IRA? And what does it matter?
What is Annuity Insurance Investment, Annuity & Pension
Insurance? Are Annuities Planning today for a secure
tomorrow?
Retire Early.
THE BEST RETIREMENT GUIDE EVER; WHAT ARE 401K,
ROTH 401K, INDIVIDUAL 401K, 403B, 457 PLAN, THRIFT
SAVINGS PLAN.
What is a SEP IRA? What is a SIMPLE IRA? --- SEE BELOW!
Long-term care insurance?
Is a long-term care insurance policy really provides money
to help cover the costs of living if you are no longer able to
take care of yourself.?
SOCIAL SECURITY RETIREMENT GUIDE. HOW DOES
SOCIAL SECURITY WORK?
What is the importance and benefits of life insurance in real
life, and at retirement age?
Pension Plans / IRA / INDIVIDUAL RETIREMENT ACCOUNT.
What is an IRA? And what does it matter?
What is Annuity Insurance Investment, Annuity & Pension
Insurance? Are Annuities Planning today for a secure
tomorrow?