A 60-second read by Nicholas Scheibner: As people are living longer, paying for health care costs is becoming a top concern. Many people are beginning to consider if a Long-Term Care Insurance policy is best for them.
Before you look at purchasing a policy, here are ten terms that you should know:
- Elimination Period: Most Long-Term Care policies require you to “pay your own way” for a specified number of days (generally ranging between zero and 120 days) before an insurance company will begin to pay benefits.
- Waiver of Premium – When you begin receiving coverage, the premium will be waived. For a shared policy, if one person goes on claim (begins receiving coverage), the premium would be waived only for that person.
- Joint Waiver of Premium – If one person goes on claim, all premiums stop.
- Survivor Waiver of Premium – If one passes away, the survivor’s premium would be waived.
- Flex Credit – If the company does well on their investments, they may pay down your premium or you can save the extra for waiver of premium.
- Activities of Daily Living – Assistance with 2 of the 6 activities of Daily Living is required for most Long-Term Care policies to become active: Dressing, Eating, Transferring, Toileting, Bathing, Continence.
- Inflation Protection: Since costs inevitably increase each year due to inflation, most policies will offer a provision that will allow your daily benefits to increase annually by a certain percentage.
- Portability: The policies should be portable between states. Some will cover worldwide.
- Home Care: Does the policy offer home-care coverage? Some companies offer it as a rider to the policy for an additional premium.
- Pooled/Shared Policy: This is a policy that can be used between couples. The benefit can apply to either one or both spouses.
Please lean on us when considering a long-term care policy. We can help you go through the pros and cons of the decision. We can also help you determine how much you can afford in yearly premiums.
Baron Financial Group’s Investment Committee provides an educational webinar on financial planning and investment management. Medicare Consultant and guest presenter Mary Jean Cullen (MedicareAssist, LLC) discusses how Medicare works. It is important to keep in mind that annual enrollment is open now through December 7th.
This presentation was first held at the September 13, 2016 Wine & Wealth event for our clients.
The webinar includes the following topics:
- Beware of Market Doomsayers (0:00 -7:28) – Victor Cannillo
- Asset Allocation and Diversification (7:30-15:53) – Anthony Benante
- Customized Financial Planning (15:56-19:12) – Nicholas Scheibner
- What Role Does Life Expectancy Play in Retirement Planning? (19:13-23:15) – James Shagawat
- Choosing A Medicare Plan: Learn What You Need To Know Prior and During Your Medicare Years (23:30-51:44) – Mary Jeanne Cullen
If you have any further questions, don’t hesitate to contact the Baron Financial Group team.
A 30-second read by Nicholas Scheibner: New Jersey is certainly not known as a “tax-friendly” state. However, the garden state has a much lower threshold on Medical Expense deductions than the federal government. New Jersey allows certain non-reimbursed Medical Expenses to be deducted after they exceed only 2% of your gross income.
A few examples of things you should make sure you keep track of throughout the year:
- Medicare Insurance Premiums
- Dental Insurance Premiums
- Doctor Co-pays
- Out-of-pocket Prescription Costs
- Eyeglasses and vision exams
This is commonly overlooked by taxpayer’s who do not itemize their deductions. However, if you make $60,000 gross income per year, 2% is only $1,200. For most people, their medical expenses will exceed that 2% as long as they keep track of all of them.
As always, if you have any further questions, don’t hesitate to contact the Baron Financial Group team.
A 60-second read by James Shagawat: You probably have homeowner’s insurance for your home and car insurance for your vehicle, but do you have umbrella insurance? In a society where many of us are concerned about personal liability and the possibility of being sued rightly or wrongly, the more assets you accumulate the more important personal liability protection becomes. Umbrella insurance will help to cover your legal expenses if someone is injured by your car or in your home. Continue reading What is the benefit of Umbrella Insurance & how do I get it?