“The tax advantages and long-term care planning options for businesses can be significant,” says Jesse Slome, director of the American Association for Long-Term Care Insurance.  “Tax deductibility is now possible with some of the hybrid long-term care policies people are increasingly purchasing.”

A hybrid long-term care policy combines the benefits of life insurance or an annuity with long-term care benefits.  “If it turns out that long-term care (LTC) is not needed, the life portion pays a death benefit to the designated beneficiary when the insured passes away,” Slome explains.

All traditional long-term care insurance policies and a limited number of hybrid policies attached to life insurance with separately identifiable LTC premium components will offer tax deductibility.  “Businesses formed as C-Corporations enjoy the most significant tax benefits,” Slome notes. Some 90 percent of C-Corps have fewer than 100 employees according to Census data.  “Every small and mid-sized business owner looking for tax and planning advantages would benefit by learning more,” he adds.

According to the Association, an increasing number of insurance companies are offering hybrid long-term care options.  The plans can vary however in terms of meeting the criteria for tax deductibility, policy costs as well benefit provisions.  ”It makes comparing the available options most worthwhile,” Slome advises.

Among hybrid long-term care policies, potentially significant differences include how the insurer will eventually pay claims.  “The differences can vary most in terms of how home care benefits are paid,” Slome points out.  “Some policies utilize a reimbursement formula with specific contractual limitations regarding who can provide care.  Alternatively, a cash benefit method provides payments without such limitations including the ability to pay family members who are providing care.”

“Cash payments provide the greatest flexibility and possibilities when care is needed,” explains Tony Massenelli, Director, Long-Term Care Sales for Nationwide, a leading provider of hybrid long-term care solutions. “One of our plans provides a retroactive lump-sum cash payment for home care back to day-one after the 90-day elimination or deductible period is met.”

Other differences include options that can increase the future value of available benefits. “An inflation growth option can address the risk of rising care costs,” adds Slome who notes that most insurers offer a fixed rate formula.  “Nationwide’s CareMatters II policy also offers an inflation option tied to the increase to U.S. medical care costs, an option that a number of long-term care insurance specialists find is more relevant for their clientele.”

To learn more about both traditional or hybrid long-term care insurance visit the American Association for Long-Term Care Insurance website.  To receive no-obligation comparisons and long-term care insurance quotes from an independent specialist, call the organization at 818-597-3227.

About the American Association for Long-Term Care Insurance.   Founded 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.   Visit https://www.aaltci.org for more information.

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Special long term care insurance insert in Kiplinger’s Personal Finance magazine

September 29, 2014 – With support from four leading national insurers the American Association for Long-Term Care Insurance is set to run a special consumer awareness insert in Kiplinger’s Personal Finance magazine.  The campaign will coincide with November’s Long-Term Care Awareness Month.

“The participation of four insurers marks the Association’s largest effort in many years,” explains Jesse Slome, director of the American Association for Long Term Care Insurance.   “We will run four pages of high impact messaging appearing in this widely-read and influential personal finance publication.”

According to AALTCI, the four insurers supporting the effort are Mutual of Omaha, New York Life, Genworth and Thrivent.   The special long-term care insurance insert will be included inside issues of Kiplinger’s magazine.  The publication is read by over two million individuals and copies will be available on newsstands around November 4th.

The AALTCI insert focuses on the newest planning strategies and policy options that make long term care insurance affordable.   “These inserts share the latest industry data as well as some ideas that few consumers are aware of,” Slome notes.  “By having four pages in the magazine we are really able to deliver a lot of timely and valuable information.”

November was declared Long-Term Care Awareness Month, a national effort established by AALTCI initially in 2001.  The month has been recognized by a Congressional Resolution as well as resolutions by numerous governors and mayors according to Slome.

The American Association for Long-Term Care Insurance was established in 1998 to create heightened awareness and to support insurance agents and financial professionals who market LTC solutions.  Copies of prior Kiplinger’s inserts can be accessed on the Association’s website, rated by consumers as the nation’s number one source for relevant and current long term care insurance information.

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Between 40-and-60 percent of the dollars an insurance company accumulates to pay future claims as well as costs comes from the premiums paid annually by policyholders.  “The rest, roughly half, comes from investment return from bonds and other instruments,” Slome notes.  “When yields drop as they have over the past few years, insurers have to charge more for policies and you reach a point where you simply price a feature out of the reach of people.  No one sells cars today that get 10 miles per gallon because no one would buy them, and the analogy is similar.”

The nation’s long term care insurance expert explains that long term care insurance policies have changed since being introduced in the late 1980s.  “The original versions only paid for nursing home care, while today most pay benefits for care in one’s own home or assisted living communities,” Slome adds.  “Things change, economies change and when interest rates rise again one day I would expect to see that impact the design of long term care insurance coverage being offered.”

Consumers who desire longer periods of benefits today can still purchase coverage to achieve that.  “Couples can each purchase a policy providing 10-years of benefits and add a shared care option which effectively yields a 20-year plan of protection,” Slome notes.

When considering longer duration policies which are always the most expensive, the Association advises consumers seek out a knowledgeable long term care insurance professional designated by the Association.  To connect with one call the Association’s Los Angeles-based national headquarters  at (818) 597-3227.  You can also access informative guides authored by Slome on reducing long term care insurance costs via the Association’s website.

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According a study of new buyers conducted annually by the American Association for Long-Term Care Insurance a growing percentage are choosing newer growth options including one that increases benefits by three percent annually.  “You want your coverage to grow to keep pace with anticipated increased costs over time,” explains Jesse Slome, executive director of the national trade organization.

Historically, the most popular option increased future benefits by five percent, Slome notes.   “Today, three percent is becoming the new five percent because consumers are finding it a far more affordable and therefore attractive option.”  The long term care insurance expert explains that costs for coverage and benefit increase options are closely tied to interest rates.  “With interest rates at near zero with no one predicting any change in the next few years, how can you increase benefits at five percent and keep the premiums affordable?” Slome asks.  “As a result, newer options which benefit consumers are being offered.”

The Association study found that 23.5 percent of new buyers opted for the three percent compound growth option in 2011 up from 16.7 percent during the prior year.   The percentage of those selecting the old-style five percent growth option declined from 42.8 percent to nearly 34 percent.

The need to plan for the eventual risk of needing long term care is vital for individuals over age 50 according to Slome.  “We tell people the risk they will need care is either zero percent or 100 percent and the question is, do you have a plan in place?”  Not all those who want to purchase insurance can do so according to the Association.  “You must be able to health qualify for this coverage and you must be able to afford the premiums,” Slome concludes.  “The newer options now available make it much more affordable for many more people who recognize the risk they face and want to prepare.”

For more information or to connect with a knowledgeable long term care insurance professional designated by the Association, call their Los Angeles national headquarters  at (818) 597-3227.  You can also access informative guides authored by Slome on reducing long term care insurance costs via the Association’s website.

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“Almost every day we hear from someone who is 85 looking for long term care insurance,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance.  “The vast majority wait until the need for care is imminent and at that point it is too late.”

Few long term care insurance companies will offer coverage to individuals past age 80 according to the Association.   “People with a need for care want to coverage but they can not meet the health requirements and applications were just a waste of time and cost for the insurers,” Slome notes.

According to the Association’s examination of long term care insurers offering coverage to those over age 80, a single individual who could meet the health qualifications could expect to pay around $11,000 per year for a policy that would pay around $164,000 in benefits.  The cost for a couple would be between $20,000 and $22,000-per-year combined for that level of coverage for each.

The average age for individual applicants today is 57 according to Slome one of the nation’s leading long term care insurance experts.  “We advise individuals that the sweet spot to look into this protection is between ages 52 and 64,” Slome says.  “Do it before you go on Medicare and start to partake in the various free health exams which are wonderful but can uncover health issues that preclude you from qualifying for long term care insurance.”

While few insurance companies today will accept applicants after age 80, Slome counsels consumers to always get a comparison quote.  “There is a whole lot more than price involved,” he notes.  “Some policies limit your ability to receive paid for care in your own home which is a reason many people obtain this coverage in the first place.”

For additional information from the Association call the organization’s national headquarters at 818-597-3227 or visit their website www.aaltci.org where consumers can also access a variety of free online consumer information guides, insurance company ratings and be connected with a designated long term care insurance professional.

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“The issue of long term care is especially important for women,” explains Jesse Slome, executive director of the American Association for Long Term Care Insurance.  “Today, women provide the majority of unpaid informal care often for their spouses, for their adult parents as well as others and they will also have the greatest need for care at some point in their own lives.”

To educate more women about the importance of long term care planning the Association plans to focus its attention during November’s Long Term Care Awareness Month toward educating women. Slome, who created the Month in 1991 designed to create heightened awareness of long term care-related issue, notes that the effort has received Congressional recognition as well as been declared by several Governors and Mayors.  “We specifically did not include the word insurance because this is a far more expansive issue and long term care insurance plays a rather small albeit important part,” Slome adds.

To assist women interested in learning more the organization has already posted a new five-minute educational video online.   “Long Term Care Awareness Month is a grassroots effort supported by those individuals and entities which share our commitment about this important matter,” Slome adds.  “We hope many take November as the opportunity to educate individuals, whether they focus on both men and women or just women.”

The Association holds its national Long Term Care Insurance Summit during the month.

Long Term Care Insurance is Good for America a campaign conceived by Barry Fisher and Jesse Slome for the LTC insurance industry

For additional information from the Association call the organization’s national headquarters at (818) 597-3227 or visit their website www.aaltci.org where consumers can also access a variety of free online consumer information guides.

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“Long term care is a woman’s issue,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance.  “Women provide the majority of unpaid informal care and they also have the greatest need for caring Americans that are going to need care.”

According to Slome women living alone have a particular reason to do planning and to consider long-term care insurance if they can afford the coverage and meet the health qualifications required today by insurers.  “There is specific information that women who are single, divorced or widowed need to know about the issue,” Slome explains.

To assist women interested in learning more the organization has just posted a new five-minute educational video.  The newest video just added to the organization’s online library is called Long Term Care Insurance Women and is specifically designed to touch on the most important facts.  “We want women to understand the important basics before they begin even considering next steps,” Slome says.  Long term care insurance women-the one fact for women

Members of the national trade association are offering free education and no-obligation long term care insurance quotes for policies from leading insurance companies.  “We have members in all states committed to helping individuals,” Slome explains.

For additional information or to hear from a member of the Association call the organization’s national headquarters in Los Angeles at (818) 597-3227 or visit their website www.aaltci.org where consumers can also access a variety of free online consumer information guides.

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“We applaud the study because Americans are already experiencing a health crisis and the problem is only going to get worse,” shares Jesse Slome, executive director of the American Association for Long  Term Care Insurance, a national trade organization that studies health and medical trends that impact the needs of older Americans.

“People incorrectly assume that everyone can purchase long term care insurance, but that is just not true,” Slome shared with consumers this week.  “Diabetes is one of the conditions that will prevent you from health qualifying with most insurance companies clearly because it is a leading reason people will need costly long-term care.”

The German study involved over 5,500 individuals with diabetes.  Scientists reported that those individuals who maintained moderate levels of physical activity had the lowest risk of death.  A second study cited by Slome found that weight training without any aerobic activity can help prevent Type 2 diabetes.  The study of 32,000 men drew the conclusion that by increasing muscle mass and improving insulin sensitivity, the study participants benefited.

Approximately 20 percent of those individuals who apply for long term care insurance are declined for health reasons according to Association study.  “The percentage of declined applicants increases for older applicants,” Slome notes.  “We advise individuals to look into their long term care planning options prior to reaching age 65 when they qualify for Medicare.”

According to the study’s group of participating men those who engaged in aerobic exercise for up to one hour weekly reduced their risk of type 2 diabetes by seven percent. Between one hour and 150 minutes of aerobics reduced risk by 31 percent, and those who performed at least 150 minutes of aerobic exercise reduced their risk by 52 percent.

“We need to encourage much more awareness of what it takes to live a long and healthy life,” Slome concluded, “and then how to plan for living into your 90s and beyond.”

For more information or to connect with a knowledgeable long term care insurance professional designated by the Association, call their Los Angeles national headquarters  at (818) 597-3227 or read free guides authored by Slome on reducing long term care insurance costs that can be accessed on the Association’s website.

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According to analysis of data by the American Association for Long-Term Care Insurance the majority (56 percent) were women.  “Eldercare providers are those who provide unpaid care to someone over the age of 65 who needed help because of a condition related to aging,” explains Jesse Slome, executive director of the national trade organization that studies health and medical trends that impact the needs of older Americans.

According to Slome, individuals ages 45 to 54 and 55 to 64 were most likely to provide eldercare.  “The percentages were 23 percent and 22 percent for each of these two categories,” Slome one of the nation’s leading long term care insurance experts shares.  “The majority, some 42 percent cared for a parent.”

Eldercare often consisted of tasks also referred to as conditions requiring long term care.  “Regrettably, the vast majority of Americans have no plan to address the very real risk they or a loved one will eventually need long term care,” Slome acknowledged.  “When the time comes they are going to have to turn to their spouse or adult children for care, changing their lives sometimes for months, sometimes for many years.”

According to the Association, some 8.1 million Americans currently have long term care insurance protection according to the Association’s 2012 research.  “People seem to focus on the financial benefits of this protection and they are important,” Slome adds.  “But the real benefits are non-financial.  This protection allows your loved ones to care about you rather than having to be forced to care for you.”

For more information or to connect with a knowledgeable long term care insurance professional designated by the Association, call their Los Angeles national headquarters  at (818) 597-3227 or read free guides authored by Slome on reducing long term care insurance costs that can be accessed on the Association’s website.

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“Women live longer than men and are far more likely to have a need for long term care,” states Jesse Slome, executive director of the American Association for Long Term Care Insurance a national trade organization that supports insurance professionals who market this protection.  “Women make up the majority of Americans in nursing homes and are far more likely to get debilitating conditions like Alzheimer’s disease.”

According to the Association’s annual survey of newly opened long term health care insurance claims, some 65 percent of new qualifying claims in 2011 were begin by women.  “The majority of claims were for care received in the policyholder’s own home,” Slome reports.  “Most people connect long term care insurance with a skilled nursing facility but the truth is most people buy it and use it because they want to avoid a stay in a nursing home.”

The information is published in the organization’s 2012 Long Term Care Insurance Sourcebook.  Some 32 percent of all new claims opened during the year were made by women for care at home.  “Long term care insurance policies typically cover care at home, in an assisted living community or a skilled nursing home facility,” Slome notes.  Some eight million Americans have some form of long term care insurance protection and the industry paid out $6.6 billion in claims to over 200,000 individuals last year.

Copies of the 2012 Long Term Care Insurance Sourcebook can be obtained from the American Association for Long-Term Care Insurance.  The organization serves the public by educating Americans about the importance of planning for the risk of needing long term care.  For additional information on long term care insurance costs or to connect with a specialist member of the Association call (818) 597-3227 or visit the organization’s website.

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