Long term care insurance is not something a lot of us think about. However, it is beneficial for everyone to have. The cost of care for seniors in nursing homes, for assisted living facilities, or in home aids is astronomical and having insurance coverage to help can be a relief. Long term care insurance can be useful for younger people too, those faced with disabilities or recovering from accidents or injuries.

Comparing Policies

Choosing long term care insurance can be extremely difficult as it is hard to predict future scenarios regarding our health and well being. Some things to consider when choosing a policy:

• You need to first consider why you need long term care insurance and determine if you qualify for coverage.
• Understanding inflation in terms of the policies being offered and how that will effect premiums is important.
• Comparing policies for care giver benefits for in home care, nursing homes and assisted living facilities, for both private and shared rooms is crucial.
• Making a list of daily living activities and checking the items on that list with the covered items in the policy is smart. The longer the list and the fewer restrictions the better the policy.
• Calculate the premiums, including future premium increases, and determine what fits your budget.
• Check Consumer Reports and the Better Business Bureau for any complaints or for the best rated companies.
• Use the internet to compare quotes from many companies to find the best policy.
• Talk to agents to determine and narrow down the right policy for your needs.

Best Rated Companies

There are three primary companies that rate insurance companies that provide long term care policies. Those companies are A.M. Best, Moody’s, and Standard & Poor’s. Each company uses a different rating system in terms of letters or numbers, but all three use a grading system to determine the best and worst insurance providers.

At the top of the list for all three companies are John Hancock, Mass Mutual Life, Prudential Insurance Company, and MetLife. These are great companies to start your search with but you should check to see if they offer policies that fit your needs.

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If you are trying to decide whether or not Assisted Living is right for you or a loved one, you will need to factor in the cost. Depending on where you live, what type of facility you are looking for and what amenities you want included, the cost can vary greatly. Here is a general breakdown of what costs you will most often be faced with.

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Assisted Living Basics

The first fee you will need to look at is the amount that covers the basics. The basics, when it comes to Assisted Living usually include items like your room and utility fees (electricity, heat and so on), some basic housekeeping, and possibly some meals. Fees also range depending on what type of accommodations are offered. Fees go up from semi private rooms, to private rooms, studios, apartments with kitchen facilities, number of bedrooms and so on. These costs mostly range from about $60.00 – $80.00 for each day, which give you a total of somewhere between $1800.00 and $2400 a month, before the extras.

The Extras

No two facilities are the same, and the extras can add up quickly when it comes to Assisted Living. Extra fees can be charged for things like upgraded meal plans, rooms with a view, extra personal care and extra housekeeping services.  Other items like cable TV, phone service, activities and more can also add on to the cost. Once you have factored in the basics and the extras, the cost usually falls somewhere between $2500 and $3500 per month, with more expensive facilities coming in as high as $5000.00 or even more per month.

Other Fees Regarding Assisted Living

Beyond the basics and the extras you can also expect to pay an upfront, non refundable security deposit fee. If you end up having to transfer to a nursing home or other type of facility later on, this deposit can sometimes follow you.

Don’t Expect Financial Assistance

Those deciding to enter into Assisted Living, depending on the facility, are usually on their own when it comes to funding. Medicare, generally, does not cover the costs associated with Assisted Living facilities. Sometimes, you might be able to get some assistance through Medicaid, so you may want to check. Additionally, some health insurance plans will cover some Assisted Living charges. If you have a private health plan be sure to check. Finally, if you have long term care insurance, check your policy to see if Assisted Living is covered.

How To Get Funding for Assisted Living Facilities

As you can see, the cost for Assisted Living is not cheap, and in some cases may be out of reach. If you have the money in savings, that can be helpful. Dependents often help pay the fees as well, or you can look into other options like cashing in a life insurance policy, if you have one that allows you to settle.

It can be a difficult decision to make, but as the baby boomers continue to age and some level of care is needed, Assisted Living, when affordable is a very viable option. It provides the care needed, while at the same time still leaves room for some independence.

A Long Term Care Ombudsman is, in the plainest definition, a representative to elderly folks in nursing homes or long term care facilities.

To understand a little more deeply what a Long Term Care Ombudsman does, it helps to delve a little deeper into the word.

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What is an Ombudsman?

An Ombudsman is someone who acts as an intermediary between two parties. Typically, the ombudsman is charged with representing one party to the other, and maintaining the trust of both. A problem solver at heart, the ombudsman is a facilitator and negotiator.

The word Ombudsman comes from the Old Norse language, a language spoken in parts of what is now scandinavia before many of the current country borders existed. The old norse term was umbuðsmann, and literally meant representative.

The Ombudsman is a little different than what you might think of as a representative. People like congressmen and women, and members of the US house of representatives are voted into office. Ombudsmen are typically appointed by the government. Additionally, whereas a Senator or member of The House is charged with many different responsibilities, the Ombudsman is typically limited to the process of investigating and addressing citizen’s complaints.

So What’s a Long Term Care Ombudsman?

A Long Term Care Ombudsman is in service to the elderly and aging population of the United States. In fact, according to the United States Older Americans Act in 1965, every state in the United States is required to have an Ombudsman program that advocates for senior citizens.

A Long Term Care Ombudsman does a lot of different things. He or she is, first and foremost, a listener. To be a good Long Term Care Ombudsman, you must have patience and compassion for others. You must be able to hear a resident’s complaints, and be an active participant in the conversation to help them clearly define their complaint.

The Ombudsman must also be a creative problem solver. It’s his or her job to resolve complaints for residents, and that can be a trying process. The solution to a complaint does not always make itself apparent, so the ability to dig for a solution, or to come up with clever ways to satisfy a resident, is an essential skill.

What Makes a Good Long Term Care Ombudsman?

To be good at this kind of job, there are a number of skills that help. Being a good educator is one of them. Often times, there’s simply a lack of information on both sides of an argument. Proactively educating each side about patients rights, good care practices, and insights into individual patients needs, wants and emotions can help avoid issues.

Being able to maintain a cool head can keep situations from boiling over. There will be times when people aren’t interested in negotiating. When emotions start running hot, you can expect to be the brunt of them from time to time. Realizing that someone’s anger, while directed at you, probably isn’t meant for you is an important step in developing the kind of understanding necessary to succeed at a difficult but meaningful job

In what is being called the ‘sandwich generation’, more Americans over the age of 50 are responsible for the care and well-being of their parents. The sandwich term stems from the fact that at 50, more individuals are in between care roles having to care for both their parents and their own children.

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Caring for an elderly parent(s) is a lot of responsibility that frequently can cause tension between other family members. There are many decisions to be made and it can be difficult to figure out a plan, especially when faced with having to care for an aging parent who takes a quick turn for the worst out of the blue.

Here are some things to consider and actions to take when facing the long-term care of an aging parent:

Call a Family Meeting

Bring together all siblings and their families to openly discuss what is going to happen in the immediate future as well as for the long term. All persons involved in the life of the parent should be able to offer input. Splitting responsibilities is the best way to keep other family members from carrying the burden. By allowing everyone a say in the matter, others are more likely to contribute to the care of the parent. Plan to meet regularly to discuss protocol for events that occur in the future.

Decide on Living Situations

Elderly people are often reluctant to move out of the home they are comfortable living in. But depending on the situation, you will need to decide if it is safe and practical for a parent to live on their own. Would it be more feasible or even necessary for your parent to move in with your family? Does your parent need 24 hour attention that can only be provided by a health care living facility? If a parent has the capacity to make decisions for themselves, be sure to include them in all discussions about the future and their own care. You may also want to defer to your parent’s doctor for advice on the long-term care aspects in regards to the situation. If your parent is incapacitated, refer to any living will or medical directive your parent has created.

Understand Financials

If your parent is in reasonably good health and has their faculties, sit with them to go over their financials. In order to care for a person properly, it will take money. Discuss your parent’s wishes for health care, living situation expenses, and basic needs. Understand their financial obligations that need to be met each month and understand where money is located and what purposes they serve per your parents wishes. Understand where safe deposit boxes are located and organize all other financial documentation that may be necessary should a parent no longer have the ability to participate in their own care.

Plan a Schedule

Work out scheduling issues and other responsibilities for the initial care can be the best way to get organized and keep everyone in the loop of what is going on. Unless you are an only child with no other help, an official schedule can keep things on track and can help keep expectations in line. Plan out what kind of care duties need to be done, when they need to be done, and who will be doing the care duties.

Seek Help Without Guilt

If you already have your hands full with daily life, your family, and your career, the care of an aging parent may be a burden that is impossible to deal with on your own. It is best to seek out assistance rather than burn yourself out. When you become too stressed and worn out you will not be able to provide good care to those who need you. Contact your local senior services agency and ask for help. They can refer you to reputable agencies where you can find assistance in the care of a parent. They may also have programs that your parent will be eligible to receive to ease the many responsibilities and expenses that come along with caring for an aging parent.

Guilt is a big factor for adult children responsible for caring for an elderly parent. Guilt often leads to kids making choices that are not in the best interest themselves as a caregiver. Seeking help from professionals, other family members, and even close friends is perfectly acceptable as no one should shoulder the responsibilities alone. Look at the situation for what it is and know your own limits. Do the best you can for you, your family, and your parent as you work through a major transition in your lives as that is all anyone can ask of you.

As boomers get older, we’re faced with the realization that we’ll need some sort of health care.   This care can be in a health care facility or in the convenience of your home.   By the time you reach 65, you have a 12% chance that you’ll need some of this care.   That percentage skyrockets to 70% by the time you reach 85.   This is a clear example of why it’s important to understand the options you have with long term care insurance.

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It is estimated that nearly 50% of Americans will need LTC at some point in their lifetime; of this group, approximately 15% will end up in a nursing home and the remaining 85% will need some other form of long term care insurance. When thinking about these numbers, also keep in mind the following:

• The average stay in a nursing home is 2.5 years
• The average annual cost of nursing-home care in 2004 is61,000 for a semi-private room
• The average annual cost for an assisted living facility is  currently $30,000 or higher
• The average home health-care system typically goes for over $55,000 a year

The conversation of how one should pay for future LTC assistance is probably one that you and your spouse have had in the past. In fact, 65% of Americans are aware of the high demand and cost of LTC assistance. However, at the end of 2002 – the peak in purchases for long term care insurance – only 5.6% of Americans over the age of 45 had purchased long term care insurance. Since then, the long term care insurance industry has seen sales decline sharply, from $1 billion to only $661 million in 20052. With numerous stories circulating of money-savvy adults who were forced to deplete their savings and retirement funds to pay for nursing homes or home health care, why have purchases for Long term care insurance not adapted to a growing consumer awareness and need?

What Does Long Term Care Insurance Cover?

To address the long-term care dilemma, we must first understand what it is and what it covers. Long term care is a type of care for chronic conditions not covered by health insurance; it is meant to support an individual who requires assistance with activities of daily living over an extended period of time. Medicare will provide only a maximum benefit of 100 days’ nursing home care, for which the recipient is only eligible after three days of hospital consecutive stay; the first 20 days are covered by Medicare, with a co-pay ($119/day in 2006) required for the remaining 80 days. All Medicare benefits end after 100 days. A patient with chronic long-term care needs will probably require some form of LTC beyond the 100-day period, which for most is where the predicament begins.

According to the American Council of Life Insurers, 48% of Americans pay out-of-pocket, 41% rely on Medicaid, and 8% receive temporary coverage provided by Medicare, but only 3% of LTC recipients pay with private long term care insurance. Once again, this poses the question: Why does traditional long term care insurance have low consumer acceptance in spite of a clear consumer need?

One of the main reasons that consumers have shied away from long term care insurance is the price tag. Long term care insurance  can be costly; in fact, a 2007 Life Insurance and Market Research Association (LIMRA) survey concluded that consumers were indeed “put off by the cost of stand-alone LTC products.” Furthermore, rates on new products are 25% to 40% higher than they were just five years ago. Another reason that consumers have not accepted long term care insurance is due to the limited choice and complexity of the products. Most consumers don’t understand how the products work, and many traditional long term carriers have left the market, further narrowing consumer choice.

Changes in Legislation for Long Term Care Insurance Products

The good news is that breakthroughs in legislation have made it possible to introduce new long term care insurance options into the marketplace, and such products are quickly gaining consumer acceptance. The Pension Protection Act (PPA) of 2006 amended some key rules for LTC / life insurance combination products.

Under the PPA of 2006, LTC-accelerated benefits may be deemed to be tax-free death benefits per Code Section 101(g) if payable for an event deemed LTC under the law. Another important benefit under the PPA of 2006 is the allowance for 1035 exchanges.

These new “Long term care insurance combination products” work as a rider attached to a traditional life insurance policy, providing a tax-free accelerated death benefit that becomes available to the insured when a long term care event is triggered. This benefit offers a single strategy that addresses the three most critical financial risks for boomers: premature death, inadequate retirement income, and the need to pay for long term case expenses.

In addition to the core protection of pairing life insurance with an LTC rider, another factor is the opportunity to enhance the income value of an Insurance Based Retirement Plan (IBRP), which itself provides supplemental retirement income to clients. Because the LTC rider is less expensive to add to an over-funded life insurance policy (due to a smaller financial risk), it has a lesser effect on the income stream available in retirement years. However, should the insured need long term care, having an LTC rider could allow for a significant additional amount of money to be pulled from the contract.

In conclusion, long term care insurance combination products offer a simple, cost-effective solution for boomers who need protection in place should the need for LTC arise.  Be sure to seek the advice of a professional to see if this type product makes sense for you and your situation. There are ways to find cheap health insurance online so you can compare quotes and see what plans would be the best fit.

Ahelping hand for a pressing need. With the baby boom generation maturing, numerous studies and articles have pointed out the rising need for long term care. Some state governments have directly responded to it.

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Now, many states have created partnership programs to encourage their residents to purchase LTC insurance coverage. It only makes sense: if more people opt to privately insure themselves, a state will face less of a burden and less liability when it comes to its own eldercare programs and eldercare costs.

How the partnership plans work.

Essentially, these plans provide dollar-for-dollar asset protection when you buy an LTC policy. So for every dollar the policy pays out in benefits, you get an equal dollar amount in asset protection under a state’s Medicaid spend-down regulations.

What does this mean for you? It means that you are able to retain assets you would otherwise have to spend down before you could qualify for state Medicaid benefits.

These partnership plans let you protect an amount of funds equal to the amount the policy pays out in benefits and still qualify for state Medicaid assistance (as long as you have used up all policy benefits and still require long term care).

Typically, Medicaid kicks in only when you are destitute. But with these partnership programs, you don’t have to be destitute to receive state assistance, even if your need for care outlasts your LTC policy benefits.

With these programs in place, LTC insurance seems more and more attractive. That’s important, because it has never seemed as essential as it does today.

Does your LTC policy qualify for a partnership plan?

You should find out if it does. Most LTC policies sold today do qualify for these partnership plans. A key factor is whether a policy has an age-related inflation protection benefit. In these policies, your daily or monthly LTC benefit amount is adjusted upward in response to inflation and increased cost of expenses. With these inflation-adjusted policies, your benefits typically go up each year, but your premiums may not.

There’s really not much incentive for state governments to partner with LTC policyholders whose policies aren’t inflation-adjusted. What would happen is that with each passing year, the odds would rise of the policyholder using up the whole LTC benefit and leaning on a state Medicaid program, so the state would be poised to pick up more and more of the cost of eldercare with the passage of time.

Partnership for Long-Term Care Insurance Example

Consider the State of Ohio’s Partnership for Long-Term Care Insurance, and the need it meets. In 2007, the average annual cost of a private or semi-private room in a nursing home exceeded $60,000 in Ohio, and the cost for a licensed, Medicare-certified home health aide was nearly $52,000 per year (for 50 hours of care per week).

Here’s the kind of difference the Ohio partnership plan could make for an Ohio resident. As an hypothetical example, let’s say Mr. and Mrs. Jones in Toledo have a $100,000 LTC policy. Once they use up their $100,000 policy benefit, they have to spend down their assets to $2,250 before they can get state Medicaid benefits. But if they exhaust a $100,000 partnership policy, they can potentially qualify for Medicaid coverage and still hang on to $101,500 of their assets.

In Ohio, if you bought your current LTC policy after August 12, 2002, your insurer must offer you the choice of exchanging it for a partnership-compatible policy. You have 90 days to decide if you want to do that. Ohio also offers state residents free, in-home long term care consultations.

What kind of long term care coverage do you have?

Do you have a policy that is eligible for a partnership plan? Do you have any LTC policy at all? It is wise to look into this. It may be essential for your long-range financial well-being. I urge you to speak with a qualified insurance advisor or financial professional today about long term care coverage, and these remarkably useful partnership plans.