“There are indeed often overlooked ways that couples and partners living together can save on this important protection,” explains Jesse Slome, AALTCI’s director.

For couples Slome suggests considering a long-term care insurance policy that offers a shared care benefit option.  “The shared care rider typically allows one spouse to double their benefit life-span getting as much as twice the protection and saving money in the process,” Slome notes.  “What’s mine can also be yours is the simplest way to explain this option.”

The long-term care insurance expert explains how the couples can benefit.  “Instead of two plans each with a maximum available benefit pool of $360,000, adding the shared care option can enable each spouse to share a joint maximum of up to $720,000 available to each,” Slome notes.

According to the Association’s 2020 policy analysis, two 55-year spouses each buying separate policies with $720,000 of benefits available to them at age 85 could pay $5,700 annually.  “Taking advantage of the shared care benefit option will save $1,000 or more and still give each spouse access to that $720,000 benefit pool at age 85,” the AALTCI director reports.

Shared care provisions can vary by insurance company and state regulations points out George Mellendorf, President of LTC Solutions, a national distributor of individual and multi-life long-term care insurance headquartered in Cape Coral, FL.  “Details are spelled out in the policy contract but you generally don’t get that until after you are approved and the policy is issued,” Mellendorf explains.  “The differences can be significant.”

As an example, an insurer such as Thrivent enables the benefit partner to purchase additional benefits without additional health underwriting.  “If one insured qualifies for the waiver of premium because they are on claim, a policy can waive the premium for the spouse,” Mellendorf adds.  “All of these small but important contractual provisions can be exceedingly meaningful.  They are ways to benefit and also save.”

The shared care benefit rider is available to married couples.  “In addition, state and domestic partners that are named in a valid certificate or license by the state can qualify,” Slome shares.  “Companies may allow two individuals living together for a period of time in a committed relationship to qualify.”

Couples and partners wanting to learn more about long-term care insurance costs and ways to save can connect with an independent LTC insurance specialist by visiting the American Association for Long-Term Care Insurance website or by calling the organization at 818-597-3227.

Established in 1998, AALTCI advocates for the importance of protecting against the real risk of needing long-term care and supports insurance professionals who market traditional and linked-benefit LTC insurance solutions.

The post Couples Overlook This Long-Term Care Insurance Planning Option appeared first on American Association for Long Term Care Insurance.

Some 10 million Americans currently require long-term care according to the American Association for Long-Term Care Insurance (AALTCI) with annual expenditures exceeding $200 billion.

“We’re proud to support this important educational campaign,” says Lisa Wendt, president and CEO of LifeSecure Insurance Company.  Experts expect the number of aging adults needing care will grow significantly in the next decade as the 76 million baby boomers begin to turn 65. 

To inform individuals about the importance of long-term care planning and simple ways to make insurance protection more affordable, AALTCI is making available a free online informational consumer guide.

“Few people are aware of the available discounts and planning techniques that can make long-term care insurance quite affordable,” explains Jesse Slome, the organization’s executive director.  “It is possible to reduce the cost by between 20-and-50 percent yearly.”

For example, significant discounts are available when applicants meet certain health qualifications that can vary from one insurer to another.  “Non-smokers may qualify for savings and couples or partners who apply for protection may be eligible for savings,” Slome adds.  “Savings can apply even when only one spouse obtains insurance coverage.”

The “2 Minute Guide: Reducing The Cost” can be accessed online.  No sign-in or personal information is required.  To access the free guide, visit www.aaltci.org/free-guide/.

About LifeSecure Insurance Company 

LifeSecure Insurance Company is based in Brighton, MI and offers long-term care and post-hospital recovery insurance products. The company’s insurance products are sold through a network of independent marketing organizations, brokers and agents and licensed in 44 states. Additional information is available at www.YourLifeSecure.com. 

About The American Association for Long-Term Care Insurance (AALTCI)

Established in 1998, AALTCI is the national professional organization serving over 3,000 insurance professionals who market long-term care insurance.  The organization’s online Consumer Information Center www.aaltci.org/ has been recognized as a leading resource of current information and relevant statistical data.

The post Free Guide Outlines Ways To Reduce Cost Of Long-Term Care Insurance appeared first on American Association for Long Term Care Insurance.

The study conducted by Canadian scientists found more dramatic evidence that those who have spoken two or more languages consistently over many years experienced a delay in the onset of their symptoms by as much as five years. 

“We are not claiming that bilingualism in any way prevents Alzheimer’s or other dementias, but it may contribute to cognitive reserve in the brain which appears to delay the onset of Alzheimer’s symptoms for quite some time,” said Dr. Craik, lead investigator and co-editor of The Oxford Handbook of Memory. 

The brains of people who speak two languages still show deterioration from Alzheimer’s pathology; however, their special ability with two languages seems to equip them with compensatory skills to hold back the tell-tale symptoms of Alzheimer’s, such as memory loss, confusion, and difficulties with problem-solving and planning. 

Observations were made on patients diagnosed with probable Alzheimer’s from 2007 to 2009. The patients’ date of diagnosis and age of onset of cognitive impairment were recorded along with information on occupational history, education and language history (i.e. fluency in English and any other languages). 

The researchers found that bilingual patients had been diagnosed with Alzheimer’s 4.3 years later and had reported the onset of symptoms five years later than the monolingual patients. The groups were equivalent on measures of cognitive and occupational level, there was no apparent effect of immigration status, and there were no gender differences. 

According to the American Association for Long-Term Care Insurance, the current study adds to mounting scientific evidence that lifestyle factors – such as regular cardiovascular exercise, a healthy diet, and speaking more than one language – can play a central role in how the brain copes with age-related cognitive decline and diseases such as Alzheimer’s.

The study was supported by the Canadian Institutes of Health Research and the Alzheimer’s Society of Canada.

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In a paper presented at the 2010 Congress of the Humanities and Social Sciences, held this week at Concordia University in Montreal, Mr. Légaré shows how the family circle available to the elderly will evolve from now until 2030.

It is usually the elderly person’s family circle that provides care. Mr. Légaré notes that about 70 per cent of the care provided for frail seniors comes from the informal network – essentially the spouse or the children. This is only possible because today’s elderly – baby-boomers’ parents – have more children to care for them and generally live in stable couples.

This situation will soon change. Divorce, common-law unions, blended families and relatively few children per couple are factors to consider. In addition to this, death rates have declined considerably, to the point where average life expectancy has grown considerably. Couples who have not split up will be living together longer.

Tomorrow’s elderly – today’s boomers – had far fewer children. Who will take care of them?  “Millions of boomers have their head buried in the sand when it comes to long-term care planning,” states Jesse Slome, executive director of the American Association for Long-Term Care Insurance.  “That’s what forced the government to try a voluntary plan (the CLASS Act) with the hope that at least a small percentage will do some planning.”  Without funds to pay for care, millions will find themselves in difficult circumstances and have to turn to the public system to pay their way.

According to professor Légaré, new programs must be developed to model these extended families and new support systems.

If informal services change, the public system must also adapt. “Boomers have done nothing like the others,” Mr. Légaré points out. “They stand out from the other cohorts, and we believe they will do so again.”

The post Aging Baby Boomers Will Need To Innovate Care Support appeared first on American Association for Long Term Care Insurance.

Previous studies have shown that aerobic exercise training, such as walking or swimming enhances brain and cognitive function. However, seniors with limited mobility are unable to benefit from this type of exercise.

The research team noted that until now, the benefits of resistance training, which is an attractive alternative type of exercise for seniors with limited mobility, on cognitive function has received little investigation.

Cognitive decline among seniors is a pressing health care issue and it is a key risk factor for falls. Approximately 30 per cent of British Columbia seniors experience a fall each year and fall-related hip fractures account for more than 4,000 injures each year at a cost of $75 Million to the health care system.

Results from this study are available for immediate adoption by senior women seeking to improve their health as the doses of resistance training used meet the recommended criteria provided by the 2008 Physical Activity Guidelines for seniors.

Support for this research was provided by a Michael Smith Foundation for Health Research Establishment Grant, the Vancouver Foundation, and the BC Medical Services Foundation.

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“For the first time, the maximum deductible limit for an individual exceeds $4,000,” explains Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance , the national trade organization.

“The federal government and an increasing number of states are sending a clear signal that individuals need to plan for long-term care and tax deductibility and tax credits certainly make long-term care insurance more attractive to millions,” Slome adds.  “It is a positive sign to see limits for long-term care insurance deductibility increase especially when pension contribution limits for 2010 were not increased.”

The end of the year provides a double tax-saving incentive for consumers. There is still time to take advantage of tax deductions in 2009 and also benefit from the increased deductible limits next year.
The 2010 deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:

Attained Age Before Close of Taxable Year
Age 40 or less:  $ 330
More than 40 but not more than 50: $ 620
More than 50 but not more than 60: $1,230
More than 60 but not more than 70: $3,290
More than 70: $4,110
Source: IRS Revenue Procedure 2009-50 (2010 limits)

The American Association for Long-Term Care Insurance is the national association serving insurance and financial professionals who provide long-term care financing solutions. A complete explanation of tax – deductible rules for individuals and business owners can be found on the Association’s website.  Click on this link for 2010 tax deductible information.

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Some scientists studies have found that about 10 percent to 15 percent of those with MCI will progress to dementia each year.  The new study which appears in the September issue of the Archives of Neurology, sought to deterine if telltale signs within MCI could determine those individuals who would progress more rapidly to full-blown dementia. 

Researchers collected data on people with mild cognitive impairment and evaluated these individuals using brain scans and cognition tests.   Over the next two years of follow-up, some 25 percent of the individuals did go on to develop dementia. 

The researchers noted that if an older adult is starting to display problems in daily life, such as problems shopping independently, problems managing their own finances, problems performing household chores, and problems maintaining their hobbies, they are more likely to develop a dementia within several years.  

Dr. Ronald C. Petersen, director of the Alzheimer’s Disease Research Center at the Mayo Clinic in Rochester, Minn., agreed that, despite the lack of effective treatments, spotting Alzheimer’s disease early remains important.  “If people in the family start to recognize a change in memory/learning patterns, that might be sufficient to identify someone who could develop Alzheimer’s disease,” Peterson said. “Don’t wait until the person is having trouble driving, is having trouble paying their bills or having trouble functioning in the community — that’s dementia,” he said. “This study tells us that we can identify important symptoms earlier and it may be worthwhile doing so.”

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REPORTERS AND OTHER MEDIA WHO WOULD LIKE THE FULL PRICE INDEX FINDINGS SHOULD CALL THE ASSOCIATION AT (818) 597-3227 or E-mail Jesse Slome, Executive Director at: jslome @ aaltci.org.

The index published annually measures costs for top-selling long-term care insurance policies that offer consumers approximately $115,000 in current benefits, with protection increasing yearly as the individual ages.  “A solid base plan of protection will grow in value to over $305,000 of protection 20 years from now,” explains Jesse Slome, Executive Director of the national trade organization that conducted the research.

The study compares costs for different levels of plans that provide long-term care benefits for
3-years or longer with a compound inflation option that increases the available insurance benefits by five percent compounded each year.

“For some age bands the cost of long-term care insurance actually declined,” Slome notes.  “What we did see is a far wider range of prices between insurers offering basically the same coverage.”  According to the Association study, costs can vary by as much as 100 percent.  “This could reflect different benefits or simply the individual insurer’s pricing assumptions,” Slome explains.  “Consumers should compare policies or work with a knowledgeable insurance professional who can analyze for them.”

Lower Interest Rates Impact Costs For Insurance Policies

The cost for long-term care insurance is closely related to interest rates that have significantly declined in recent years.  “Investment income comprises between 40 and 60 percent of the dollars used to pay eventual long-term care claims,” Slome explains.  “Premiums paid by policyholders make up the other portion and as interest rates have declined, insurers have found it necessary to raise premiums for protection.”  The industry paid out $8.5 billion in claims in 2008 to some 180,000 policyholders.

“The cost of long-term care insurance is directly related to how much protection you purchase, the age you first apply and your health at the time of application,” explains Slome.  “Over half of all individual applicants are between ages 55 and 64, and one third purchase a daily benefit of between $100 and $149.”  The daily benefit amount actually equals either a cash benefit or a pool of money that the policyholder can access.   Most insurers offer significant discounts when both spouses apply for coverage.

The survey compared costs for individuals age 55 with those age 65.   “A married individual purchasing $172,000 in current protection will pay about $20 a week ($1,084-per-year) by qualifying for available good health discounts,” Slome explains.  “By waiting until they are age 65, they’ll likely pay $63-a-week because they will need to buy more coverage to keep pace with inflation and will likely no longer qualify for the good health savings.”

LTC Association Study Illustrates Reasons “Waiting Doesn’t Pay”

Let’s say you want to plan for equal long-term care protection at age 75.    A 55-year-old who qualifies for preferred health and spousal discounts pays $1,084 for a “standard” plan based on a current benefit of $150-per-day ($54,750 per-year).   At age 75, the available benefit would be $457,957 because the yearly benefit grows 5% compounded annually.  If you wait to buy at age 65, you need to start with a higher-level of initial protection ($150 grows to $240 at 5% compounded) to have equal protection.  Today, that level of protection ($240) costs $3,275 yearly (assumes standard health).  But, no one can predict future increases for new coverage.  Plus, for that 10-year period of time (age 55-65), the individual has no long-term care insurance coverage.

The Price Index information is available to insurance and financial professionals who are members of the American Association for Long-Term Care Insurance.  For more information on member benefits click on this link: Read Our Membership Benefits Guide.

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REPORTERS AND OTHER MEDIA WHO WOULD LIKE ADDITIONAL INFORMATION OR TO ARRANGE AN INTERVIEW WITH JESSE SLOME, PLEASE CALL THE ASSOCIATION OFFICES AT (818) 597-3227.

“As a result of increased longevity and medical advances, the need for long-term care is a new phenomenon for a generation of Americans,” said Jesse Slome, Executive Director of the industry trade group. “The pervasive concern about purchasing long-term care insurance is will I ever use it?”

According to Association data 180,000 Americans received benefits from their long-term care insurance policy and some $8.5 billion in claims was paid in 2008. “This is a significant increase in benefits paid compared to the prior year,” Slome explains. “Long-term care insurance is not the lottery. This is not something you really want to win; but having protection in place can certainly pay off and for thousands of people it increasingly is.”

The organization collected data on claims including the largest open claims (still being paid as of December 31, 2008) paid by six of the nation’s leading insurers. The second largest claim is by a woman who purchased her long-term care insurance policy at age 72, paying an annual premium of $12,766. Three years later her claim began and has continued for almost nine years ($1.02 million in benefits has already been paid for her nursing home care).

The largest claim being paid to a man exceeds $690,000. The individual purchased long-term care insurance protection through his employer at age 54, paying an annual premium of $2,560. The coverage was designed to pay benefits for five years. Two years later his claim began and has continued for almost seven years.
Nearly one in 10 (8.9%) of new individual claims initiated during 2008 prior to age 70 the study revealed. “While most long-term care insurance claims begin at older ages, typically in ones late 70s or 80s, accidents and illnesses are a common reason younger people need this care,” Slome notes.

The Association’s study revealed that 30.5% of claims start between ages 70 and 79; some 60.6% after age 80. “Almost two-thirds of claimants receiving benefits (65%) are women,” Slome reports, “and the largest percentage of benefit payments (42.0%) are for care in ones own home versus a nursing home (30.5%).”
The five most common reasons for a long-term care insurance claim, according to the Association, are Alzheimer’s Disease, stroke, arthritis, circulatory issues or injury. “One in eight persons age 65 and over has Alzheimer’s,” Slome says. “The number of new cases is expected to increase to 450,000 a year by 2010 and to 615,000 new cases a year by 2030. It’s time for individuals to start planning for care should they need it in the future.” The study shows that planning can certainly pay off.

The complete findings of the study are published in the 2009 LTCi Sourcebook and subsequent issues of the Association’s member magazine available from the American Association for Long-Term Care Insurance. Copies are available free of charge to Association members or may be purchased for $99. Call the Association’s offices at (818) 597-3227 or visit the organization’s website.

Insurance and financial professionals who are members of the American Association for Long-Term Care Insurance have access to the organization’s  Online Learning, Marketing and Sales Center.  To see all the benefits of membership click on this link: Read Our Membership Benefits Guide.

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“Women have a far greater risk of needing long-term care and indeed two-thirds of all long-term care insurance benefits result from care needs by women,” explains Jesse Slome, executive director of the national trade organization.  “Women also tend to be the ones who initiate the long-term care planning discussion and often are the decision maker when it comes to purchasing long-term care insurance.”

Women over the age of 65 comprise 980,000 nursing home residents in the U.S., according to the “Woman’s Guide To Long-Term Care Insurance Protection.”  Only 337,000 men over age 65 are in nursing homes.  Women are far more likely to suffer from Alzheimer’s Disease that is the cause of the largest and most costly needs for long-term care.   “Women benefit more from owning long-term care insurance,” Slome notes.  “Two-thirds of all insurance benefits are paid to women, 41 percent to single women and 25 percent to married women.”  Single men account for 12 percent of claim benefits and married men for 22 percent.

The guide addresses important planning considerations for women who have spouses or partners as well as women who live alone.  “Each have very specific planning needs and issues,” Slome explains.  “Married women face a likelihood of providing care for their spouse, who typically is older, or facing a very significant annual bill for care.”  Women who live alone lack the spouse or extended family members to assist with caregiving.

Copies of the guide can be viewed on the American Association for Long-Term Care Insurance‘s website and may be purchased by insurance and financial professionals.  To view a copy go to: http:www.aaltci.org/tools or call the organization for information at 818-597-3227.

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