TV Topic of the Week
Who is Mary Ann Campbell?

Keynote Speeches and Programs

Contact Mary Ann Campbell

home page
  

Long Term Care Insurance

© Money Magic, Inc. 9/28/02
Saturday Daybreak KATV, Chn. 7
Mary Ann Campbell, CFP

The Situation:
You’ve saved and have a good retirement fund, and you don’t want it wiped out. You may face going into a nursing home in your old age, or have parents or relatives who might. You know the cost is expensive, and the financial devestation that long-term care costs can cause.

Money Magic Solutions: (What you gonna do?)

  1. Determine if you need long term care insurance.
  2. Learn as much as you can about your options.Contact your state insurance department’s SHIIP division. That stands for senior health insurance information program.800-224-6330
    They offer booklets such as A Shopper Guide to Long-Term Care, and a Federal Government product: Choosing Long-Term Care
  3. Study the new program available to federal workers.This program is offered jointly by John Hancock and metLife. You can check it out at the OPM’s web site: www.opm.gov/insure/ltc
  4. Find a Long-Term-Care specialist. They deal with several insurers and know whose benefits and prices best match your needs and medical condition. To find someone in your area: www.ltc-cltc.com.
  5. Daily Rate:Shop around. Actual nursing home costs vary enormously. Check out the nursing home you’d prefer in your area before you choose you daily rate.
  6. Waiting period:Plan to pay for the first 90 days out of pocket, before the coverage kicks in. Of course, if you can hold off for a year, you’ll save even more on premiums.
  7. Policy Term:You can usually choose a benefit period from two years to unlimited coverage. Most people only need nursing care for three to four years at most. So the most common period is within the 4-6 year range. Coverage for a lifetime is very expensive. However, if you have a strong history of Alzheimer’s in your family, you should consider purchasing an unlimited term if you can afford it.
  8. Inflation protection:Buying a 5% compound inflation rider generally doubles the cost of your policy. It’s expensive, but you need to actually be covered if you need to use it. It will make a huge difference.
  9. Check on discounts:Your company may offer a policy, or may offer a discount if both husband and wife buy.