Best Long Term Care Policy in Pennsylvania

 

Sosnov & Sosnov

540 Swede St
Norristown, PA 19401
Montgomery County
[P] (610) 279-8700
[F] (610) 277-9490


47 N. Tallahassee Avenue
Atlantic City, NJ 08401 
Atlantic County

(609) 345-3235

Amy Sosnov Esq.
Amy Sosnov Esq.
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FIND THE BEST LONG TERM CARE POLICY IN PENNSYLVANIA

Tags: assisted living costs, assisted living pricing, base costs

The Best
Long Term Care Insurance

How They Get You

Pennsylvania does not have very strong regulations which makes it difficult for families to understand what could and should be offered at a facility, and how open the managers should be in explaining what is entailed in a contract.

Right-to-Know Law

The best Long Term Care Policy depends on a number of different factors that you must consider. The best policy for you will be from the best company you can find who can offer the solutions that best fits your need.

Sosnov and Sosnov concentrates on practicing Estate Planning and Estate Administration with extensive experience in all aspects of litigation and have helped many clients with this process. We have helped many clients handle problems they have faced when they were living in nursing homes.

It is our hope that you will use the following resources to learn about long term care insurance and decide whether or not it’s right for you.

Please call us with any questions you may have (610) 279-8700

A nursing home can cost more than $200 a day, and a home health aide averages $450 a week, usually part-time. Yet long-term care is one major health expense for which nearly all Americans are uninsured. The long-term care dilemma Only about 3% of adults have their own policy, and Medicare doesn't cover it.

Families confront their financial exposure when a frail elder takes a turn for the worse, a teen is calamitously injured in a car crash or a middle-age worker suffers a debilitating stroke.

Long-term care insurance covers what medical care and nursing care doesn’t. It includes coverage for all the assistance you might one day need in the event you develop a chronic illness or disability. Long term care kicks in when you are unable to care for yourself for any extended length of time.

Most insurance companies that provide this kind of coverage cover care whether you are in a nursing home, assisted living facility, or are being provided with in-home care. While long-term care users are generally seniors, sometimes young and middle-aged people with injuries or illness can benefit from this type of coverage.

Tips for Buying LTC Insurance: Call Amy Sosnov to read the contract before you sign anything.

* Shop around. Ask for quotes from at least three different companies. Let them know you are shopping around.
* Read the Policy. Let Amy Sosnov sort this out and help find any weasel clause and help evaluate the policy with you.
* Find out if the premiums will increase. You need to make sure that premiums will still be affordable for you if the costs for long term care increase in the future.
* Look for policies that offer guaranteed renewal. With guaranteed renewal your insurer cannot refuse the insured coverage down the road due to age or mental deterioration.

Who Should Buy Long Term Care Insurance?
As a general rule, you might consider purchasing long term care insurance if you have assets totaling at least $30,000 (this does not include your home) or you have income that you need to protect.

According to the National Academy of Elder Law Attorneys, your odds of experiencing a car accident are 1 out of 240 (0.4%). Your odds of having a house fire are 1 in 1,200 (0.08%). But your chances of needing long-term care are 1 in 2, or 50%. Even so, more people insure themselves against the first two risks than the third.

The American Association for Long-Term Care Insurance recently offered some encouragement, noting that 35% of recent long-term care insurance buyers paid less than $1,500 per year. Its executive director added, "Individuals mistakenly have been led to believe that long term care insurance costs thousands of dollars. A significant number of individuals today pay between $10 and $20 a week. That's a highly affordable way to protect $150,000 to $250,000 of future care."

 

The Best
Long Term Care Insurance

Long Term Care Amy Sosnov Attorney

INFORMATION FROM PENNSYLVANINA ON LONG TERM CARE

Long-Term Care (LTC) insurance is one option many people choose to provide financial protection when they can no longer perform the most basic functions of daily activity. LTC insurance coverage in Pennsylvania provides services in your home, a medical facility or a combination of the two.

Sample Long-Term Care Policies that were being sold as of 6/1/07.
The following charts are examples of long-term care policies.

The policies are divided into two categories:

1) Tax-Qualified Policy / Inflation Protection Rider is available at additional cost.

2) Non Tax-Qualified Policy / Inflation Protection Rider is available at additional cost.

The premium rates shown are based on a $150 daily nursing home benefit.

 

COSTS

LTC

 

2010 Graphic: How much your policy costs will depend on:

1) how old you are when you apply for it
2) how much coverage you want each month
3) when you want the payment to kick in - 30 days, 60 days, 90 days
4) if you get an inflation rider and if you do which one you pick.

American Association for Long-Term Care Insurance: "Long-term-care policies cost an average of more than $1,450 annually for an individual 55-year-old purchasing a three-year comprehensive benefit of $150 a day."

FYI: The LTC policy only covers 6 years of living in a nursing home.

The average costs in Philadelpha are:

* $252/day for a semi-private room in a nursing home
* $269/day for a private room in a nursing home
* $2,933/month for care in an Assisted Living Facility
* $3,131/month for care in an Assisted Living Facility (for a one-bedroom unit)
* $5000/month for nursing home care
* $18 - 21/hour for a Home Health Aide
* $19/hour for a Homemaker services
* $67/day for care in an Adult Day Health Care Center
Source: 2009 MetLife Market Survey of Long-Term Care Costs

Genworth Financial, 2010 Cost of Care report: the costs of assisted living care depends greatly on the level of service a resident requires. They also note that as a whole, costs of assisted living has gone up more than nursing homes, adult day care, and home care, but this change is likely due to a more broad range of services provided by assisted living than in prior years. Many times, residents that would need to go into a nursing home are able to use an assisted living facility instead. They argue that the rise in cost is just a bit more than average inflation, around 4.5%.

 

WHAT HAPPENS IF THE INSURANCE COMPANY FAILS?

 

Pennsylvania Life & Health Insurance Guaranty Association
290 King of Prussia Road / Radnor, PA 19087

 

"every holder of a covered life insurance, annuity, or non-cancelable health insurance policy who has made the required premium payments has been given the opportunity to have the policy assumed by another healthy carrier or had the covered portions of their policies fulfilled by their guaranty association itself" SOURCE

PENNSYLVANIA INSOLVENCIES

National Organization of Life and Health Insurance Guaranty Associations

Pennsylvania - $100,000 ($300,000 in the present value of annuity benefits) http://www.safemoneyplaces.com/guaranty.htm

 

Research Insurance Companies

PENNSYLVANINA LTC Companies

 

HOW TO CALCULATE

Long Term Care Worker

If something went wrong, TODAY

Imagine how much it will cost to have someone come to your house to help you.

LTC includes a broad range of health and support services that people need as they age or if they are disabled. The majority of these services are personal care, or assistance with activities of daily living that many families are able to provide all, or some of, free. But, as care and support needs increase, paid care is usually needed to supplement family provided services and supports, provide respite to family caregivers, or to pay for more extensive services in a facility, such as a nursing home or assisted living, when individuals can no longer be cared for in their homes.

There are variations in costs based on the type and amount of care you need, the provider you use, and where you live. Home health and home care services, provided in two-to-four-hour blocks of time referred to as "visits," are generally more expensive in the evening, or on weekends or holidays. The costs of services in some community programs, such as adult day service programs, are often provided at a per-day rate, but vary based on overhead and programming costs. Many care facilities charge extra for services provided beyond the basic room-and-board charge, although some may have "all inclusive" fees.

 

YOUR STRATEGY

best long term care policy

Are you one of the tens of millions of baby boomers are completely unprepared for retirement?

According to the Employee Benefits Research Institute, a think tank, two-thirds of workers and two-thirds of retirees have saved less than $50,000 for their retirement.

Please call us (610) 279-8700
We can help you plan for your retirement.

Medicare will not pay for assisted living care.
However, Medicaid may cover expenses in part. That means that the less money you have, the better your chances of getting assistance. This leaves the majority of assisted living residents to find private sources for payment of their monthly costs.

Private Funding Options
• Savings and Retirement: Over a lifetime a substantial savings can accumulate, making it possible to fund assisted living for the long-term. However, assisted living costs are expected to rise in the coming years, making it necessary to budget carefully.

• Annuities: An annuity can ensure that you are able to afford assisted living. By providing a guaranteed monthly income, these investment funds can supplement your retirement benefits.

- Try not to buy LTC insurance like car insurance, because if you miss a payment you lose your insurance, it doesn't matter how many years you've already paid for.

- Try to pay for your policy over a fixed amount of time - like 5, 7, or 10 years. This will protect your rate - lock it in from going up over the years.

- Buy your policy with an inflation rider so that as you age the amount you get every month will keep pace with inflation. As the years go by, the older you get the more money you will need to pay for everything.

- Choose Either the 3% simple interest rate or the compound rate inflation rider.
The simple rate is cheaper to buy, but will only increase a little bit as time goes by. It doesn't do a great job with inflation, but It is better than not having an inflation rider at all.
Compound Rate will keep up with inflation but will cost more and protect you much better in the years down the road.

- 2011 Other Alternatives to Pricey Coverage; Weighing Pros, Cons.
New products may be an imperfect substitute. Insurers say the new products aren't meant to replace existing long-term-care policies, whose benefits can be far more generous. Permanent life insurance policies or annuities with "accelerated" death benefits or "living benefit" riders which allow owners to draw down cash during their lifetime if they become terminally or chronically ill.
50 year old purchased a $144,000 variable universal life-insurance policy from the Hartford with a LifeAccess optional rider, pays premiums of $100 a month which allows her to tap the entire death benefit early should she receive a diagnosis of a chronic illness. (Variable policies like hers include a separate investment account that can fluctuate in value. THIS IS BETTER THAN HAVING NO INSURANCE AT ALL

 

CONSIDER BUYING TWO PLANS

THIS ISN'T AN
ACTUAL QUOTE

ONLY A POSSIBLE EXAMPLE

FOR DISCUSSION

long term care plan

If you are a Female 57 years old and want to get $5000.00 a month coverage starting in 2010:

#1 POLICY
Spend 20,000.oo thousand dollars or however much you can afford
$ 20,000 the smallest amount Lincoln Financial's Money Guard LTC plan will allow.

Benefits:
- Gives you immediate coverage right now for the rest of your life which is better than nothing at all.
- No rate hikes - rates are locked in.
- One Lump sum payment preserves the money if you wanted to get it back.
- Make your spouse or children the beneficiaries  because if you never used it you can give it them.

#2 POLICY
- Buy this policy for the balance of coverage needed to cover the rest you need for each month, compound rate, paid over {10 } years.

 

Example: 2010 LTC policy for Female 57 years old


GOAL IS TO GET $5000.00 A MONTH COVERAGE
STARTING DAY 90

Policy #1 
A $20,000 LTC policy bought with cash,
2% 5% compound rate pays out $1000.oo a month

Policy #2

pays out $4000.oo a month, 2% 5% compound rate, 
costs around $9,300.00 a year for 10 years.

80 YEAR OLD FEMALE -- YEAR 2033

MORE than $11,700.00 available each month

- ANNUAL BENEFIT MORE THAN $140,400.00

Almost 15 Million Alzheimer's And Dementia Caregivers In USA Today 15 Mar 2011
There are nearly 15 million people caring for individuals with Alzheimer's disease and dementia in the USA, the Alzheimer's Association has revealed today. The number of caregivers is 37% higher than estimates published last year, according the 2011 Alzheimer's Disease Facts and Figures. The authors of the report found that American caregivers gave 17 billion hours of unpaid care, estimated at $202.6 billion. A state with a population of 15 million would be the 5th largest in the USA. Most individuals over the age of 65 years survive for about four to eight years after they are diagnosed with Alzheimer's disease, sometimes 20 years. Because of the debilitating effects of the disease and its long duration, family members and friends who care for patients are placed under increasingly intense demands. The longer a caregiver has to look after somebody with Alzheimer's, the greater their own health issues become, representing a further financial burden of almost $8 billion in raised healthcare costs. 5.4 million Americans are thought to be living with Alzheimer's disease. Alzheimer's is not a part of normal aging, even though age is its greatest risk factor, the Alzheimer's Association writes. Alzheimer's is the sixth-leading cause of death in America. It is "the only cause of death among the top 10 in the United States that cannot be prevented, cured or even slowed."

Total payments for health care and long-term services for patients with Alzheimer's will rise by $11 billion this year compared to last year to $183 billion, the Alzheimer's Association estimates. Most of this increase will be made up by Medicare and Medicaid costs. Over the next four decades Medicare costs related to Alzheimer's and dementias will rise by almost 600% and Medicaid costs by 400% the Alzheimer's Association believes. Source: Alzheimer's Association

Alzheimers Studies Show Genetic Links
The two largest studies of Alzheimers disease have led to the discovery of no fewer than five genes that provide intriguing new clues to why it strikes and how it progresses.


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