Q: How does one apply for LTC Insurance?
A: The long term care insurance (underwriting) application process is the same as it was before the Internet using postal mail. The reason is that states require a signature to approve a health review (underwriting).
We email or mail you the application forms with instructions. If you want we can go over the forms with you on the phone as you are filling them out.
The application is then submitted for underwriting approval, which takes 2-6 weeks. There is no physical unless you haven't seen a doctor in 2 years, only your medical records will be reviewed. If approved you will be notified in writing.
You don't have to finalize your plan benefits before you are health approved. Once you receive your policy you have 30 days to modify or cancel your policy. If you are thinking about getting long term care insurance call us or get an online quote. If you are going to wait we suggest you apply a month before your health changes.
You can't just buy this insurance just because you want to, you have apply for underwriting approval and not everyone is approved.
Q: Is there a difference between buying insurance from you and a in-person salesman?
A: Yes and no.
Yes, because people often feel pressured when dealing in-person or even over the phone. We take the opposite approach; we don't sell you — you buy from us. If you feel pressure then it's not planning, it's selling. A lot of our customers give us referrals and who is going to refer a pushy salesman? We know that everyone has their time and place to decide if this is right for them. When you're ready, we're ready.
And no, there is no difference because we also work with the large insurers like Genworth, John Hancock, and MetLife to make sure you get the best policy and the best rate.
Q: How much does a long term care cost?
A: A national survey showed that home care can cost $35 per hour, assisted living can cost $3,000-$6000 per month and nursing home care can cost $6,000-$11,000 per month. How long will your life savings last at $75,000+ per year and is it worth risking $75,000+ a year?
Let's use an example of John and Mary. If both spouses spent an average of 3 years in care at $75,000 it would cost them $450,000 if they don't go bankrupt first and end up on Medicaid (welfare) and that's $450,000 that's not going to their heirs, plus most people don't know that Medicaid expects to be reimbursed by John and Mary's estate. Most would agree that John and Mary would have saved a lot if they'd had insurance rather than spending $450,000 out of savings.
So why don't more people insure? It's often a matter of denial — "it won't happen to me" — because no one wants to think that they're going to need long term care so they just don't think about it and since they don't think about it they don't plan for it. Someone with $500,000 may say I'll self-insure (pay out of pocket), but what else do they self-insure? Once you plan for it you will have peace of mind that your family will not be burdened.
Q: How much does a long term care insurance plan cost?
A: Like all insurance it depends on the benefits you choose. If you asked "how much would life insurance cost me?" We would have to know how much insurance you want and your age. Our clients' monthly premiums range from under $100 to over $1,000 just like one person will have a $10,000 life insurance policy and another will have $10,000,000. You decide on how much insurance you want and can afford.
You design a plan for yourself by choosing your benefits. Since each person is different so might their long term care insurance plan, even couples may not have the same plan.
Here are the four most important parts of a plan and when you factor in your age then you can determine the premium.
1) Daily or Monthly Benefit (Depending on the cost of care in your area. Average cost is $200 per day)
2) Benefit Multiplier or how long benefits are paid. (You would consider your health and your family health history and the average claim is 3 yrs.)
3) Inflation Protection (under 70 years old we suggest Compound, 70-80 Equal or Simple, over 80 none.)
4) Elimination Period (EP), the deductible you pay (we suggest zero for home care)
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Contact us if you have any questions — our toll free number is 1-888-582-2464 or by Email.