10 Long-Term Care Terms You Should Know

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:

  1. 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.
  2. 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.
  3. Joint Waiver of Premium – If one person goes on claim, all premiums stop.
  4. Survivor Waiver of Premium – If one passes away, the survivor’s premium would be waived.
  5. 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.
  6. 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.
  7. 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.
  8. Portability: The policies should be portable between states. Some will cover worldwide.
  9. Home Care: Does the policy offer home-care coverage? Some companies offer it as a rider to the policy for an additional premium.
  10. 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.

The Risks of Failing to Plan for Long-Term Care Costs*

There’s a high chance you’ll need nursing-home care, yet many fail to plan. You have planned for a comfortable retirement: where you want to live, how much you want to travel, how you would like to spend your days – and how you’re going to pay for it all. One thing that could derail this plan financially is your health. The related financial problem doesn’t stem from becoming sick and dying, but from becoming sick and living – and needing long-term care. Read the July 2014 Financially Empowering Women(FEW) column to learn more about planning for long-term care.

You can go to the ABC News website or click the link below to read the entire article.

ABC News Column July 1, 2014

 * Part of the Financially Empowering Women™ series

September 2013: Women and Care Giving: Caring for an Elderly Family Member

Listen to the “Financially Empowering Women™” podcast:

We have invited Laurie Hauptman from Hauptman & Hauptman, P.C. to help us understand when you need an elder care attorney so that when a crisis hits, you’ll be emotionally, psychologically, and financially prepared to cope with this very difficult time.  Continue reading “September 2013: Women and Care Giving: Caring for an Elderly Family Member”

March 2013: Long Term Care Planning

Listen to the “Financially Empowering Women™” podcast: 

Today’s guest is Brigitte Bromberg. Brigitte has been a risk management expert for almost thirty years. She specializes in long term care insurance, disability insurance, life insurance and annuities. Brigitte is highly valued by other advisors and clients in general, who appreciate her knowledge and ability to focus on protecting families assets and businesses. Continue reading “March 2013: Long Term Care Planning”