"Chronic Illness" riders on life insurance are NOT the same as real LTC insurance. There is an explosion of these "living benefit" riders being added to life insurance policies with NO standardization as to what "Chronic Illness" means or how the benefits get paid.
Some of these "Chronic Illness" riders may look a lot like real LTC insurance - an agent may even tell you, "It's just the same as LTC insurance." But it is not.
If you're goal is planning for extended, long-term care needs and an agent only shows you one of these riders you must find another agent!
CLICK HERE to read an outstanding article on some of the problems with "Chronic Illness" riders by my colleague, Kerry Peabody.
"If you need a plan to pay for LTC, you’re better off with a policy specifically designed to do that. When you’re actually planning to meet your LTC needs, a Chronic Illness rider isn’t a plan, it’s an afterthought."
Request a copy of our updated 2020 Consumer Guide to LTC Insurance
The Hybrid LTC Information Center
ComfortLTC.com has added a new resource for consumers and financial advisors regarding "hybrid" or "linked-benefit" LTC insurance. Articles include:
As a truly independent brokerage agency specializing in extended care planning and LTC insurance, Comfort LTC fairly represents ALL types of LTC insurance - Traditional LTC and all the many different Hybrid LTC variations.
Do not ever buy LTC insurance from an agent or advisor who only sells one type of coverage (or represents only one or two companies) - they cannot represent your best interests. CLICK HERE for our guide to finding a truly independent LTC specialist.
Check out this article about a FL CCRC with a $1.5-million+ entrance fee!
Then read our exclusive report on creating your own "Private CCRC Plan".
A Comfort LTC Exclusive:
Hybrid (or "linked-benefit", "combo" or "asset-based") LTC insurance options are exploding in the marketplace, and they are NOT all created equal.
Are "hybrid" LTC policies with a death benefit really a better deal?
You'll be surprised at what our analysis shows, and why you need to make sure you know ALL your options before you buy LTC insurance.
The new Comfort LTC Hybrid LTCI Information Center will provide clear explanations of the many different types of plans along with detailed case study analysis to provide real-world examples and comparisons.
A recent on-line column at Advisors Perspective attempts to provide an objective framework for conducting a long term care insurance analysis in a financial planning practice. It fails on several levels.
The article, “Evaluating Long-Term Care Insurance”, published February 24, 2020, and written by Allan Roth is hardly a comprehensive view of the subject, and it needs to be viewed with limited applicability.
I find it to be only partially researched, inconsistently analyzed, and overly opinionated.
Too many financial advisors inappropriately seek to value insurance products using an investment analysis model. While there are certainly cash-flow and cost of money considerations, as noted above insurance is purchased with an expectation of “losing” a little in exchange for potentially protecting a lot. And there are “soft”, subjective considerations that are also routinely ignored, but that often create the biggest value in having coverage when the risk event occurs.
The state of Washington has passed the first of its kind government-run LTC insurance program for working residents of the state.
The plan will provide $100 per day of benefits which will increase with inflation for a maximum of 365 days (1-year). Each day of benefits is considered a "unit" of coverage and units can be combined to pay for care services above $100/day, but that would also shorten the total benefit period. The benefit can be used to pay family members to provide care after they have completed a minimum amount of mandatory training.
Every employee in the state will have a payroll tax withholding to pay for the plan. The tax is 0.58%, or $0.58 for every $100 in payroll income. A person earning $4,000 per month would pay $23.20 per month.
The plan does not cover people already retired or who will retire in the next 6 to 10 years. It also is not portable if an employee leaves the state of Washington.
Payroll deductions will not begin for 3 years, and no benefits will be paid for at least 3 years after that as the plan requires that employees pay in for a minimum of 3 of the previous 6 years to be eligible. To be fully "vested" in the plan an employee must pay in for at least 10 years.
"Self employed" people will not be automatically covered, but can opt-into the plan at the same payroll tax rate.
Employees who have private LTC insurance can opt-out of the tax and coverage.
Read more details by clicking here:
This week the news media lost its collective mind over a silly, old social media trope about a guy who says he won't live out his days in a nursing home, rather he'll simply stay at a Holiday Inn. It's cheaper, and the service is better, so it says. But it's a false narrative.
I wrote an extensive blog on this in 2016. The e-mail I copied into that post from three years ago and the "new" Facebook post getting all the current attention are identical, word-for-word. It's certainly not original, it's specious and misleading, and the numbers are (still) way out of date.
A TV station in Houston, KHOU, even found an internet post from 2004 with nearly the same wording as this old-is-new-again misleading social media joke.
You can't compare "independent retirement living" with CARE in a nursing home - or an assisted living facility. Hotel staff - nor cruise ship staff - will bathe and dress you, help you to and from the toilet, nor will they make sure your dementia doesn't lead you out the front door into traffic - or over the rail into the ocean - in the middle of the night. Once you need CARE, you'll be on the curb - or the dock.
CLICK HERE to read my 2016 blog post for more details on why this is a ridiculous idea.
Comfort LTC owner, Bill Comfort, is featured on a new website for insurance agents and financial advisors seeking to learn more about LTC insurance and other care-planning options.
Licensed agents and advisors can access the new NAIFA Center for Limited and Extended Care Funding at: https://naifa.lifehappenspro.org
Watch Bill's video promoting the CLTC designation training program here:
Good advice from Kaiser Health News: Hold off on genetic testing until AFTER you buy LTC insurance (or life or disability). You must disclose the existence of the testing and any known results on an application and results can be used to deny or limit coverage.
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