Emily in MIchigan has a cash indemnity LTC plan.  She asked, "Do they just keep paying until the benefits are all used or can she stop the payments mid-stream if she no longer needs care?"  Indemnity plans simply pay the maximum benefit each month without any need for invoices to be submitted, so how will they know to stop paying?  Diane shares some key differences in how both reimbursement and indemnity  LTC plans work.  Let's talk and find out which may work best to protect your family, assets and choices.  

Preparing For Tomorrow podcast

Can I stop/pause benefits after I start using my LTC insurance?

LTC insurance is not like any other insurance as we need to work with so much uncertainty when designing a plan.  With property insurance, we assess and insure the value of the property.  Health insurers have tremendous negotiating power to keep costs down when we go to the hospital.  LTC insures and pays what we as individuals have contracted them to pay.  Diane shares what decisions go into planning so each family can obtain coverage that is meaningful to their unique needs, usually 20-40 years from the date of purchase.

Why can't I just get a quote online like with other insurance?

Welcome to season 3!!!!  Steven in New Jersey asked about contingent non-forfeiture.  He wants to know if every LTC plan has it.  Diane shares what both the contingent NF rider is as well as the optional NF rider that you can add to a traditional Tax-Qualified LTC plan.  Hybrid or linked benefit plans have a cash surrender value rather than non-forfeiture.  Listen and learn how they differ, and how this all works when used.

What does Contingent Non-Forfeiture mean? Is it on every LTC plan?

Although Maria's husband has used over $393,0000 on LTC benefits over the last 5 years, it wasn't enough.  He still needs help with dementia, and they will need to start spending down assets until he qualifies for Medicaid.  With Alzheimer's disease in his family, they know now that spending another $40,000 on LTC insurance would have saved them not only $100K+ today, but also would give them more control over where he will recveive care for the rest of his life.  Learn from their mistake so you and your family can be Prepared for Tomorrow.

My husband's LTC insurance will end next month. What can I do to keep it active?

This week, Irene in Nebraska wants to know if she should include inflation protection on her LTC plan, at a significantly higher cost. Nursing home costs have averaged a 5% annual increase in cost over the last 30 years! Diane shares how inflation protection works and how plans with the rider help so much more at claim time.  She shares how her mom-in-law's plan has grown over 25 years and the value it has provided during her home care journey since April, 2020.  If it's in the budget, inflation protection is a must for almost everyone.

Should I include inflation protection in my LTC plan, even at the higher cost?

If we prepare today, our families will be better prepared for tomorrow.  Life insurance and LTC insurance are not for us - they're for those we love the most.  We need to put aside our pride and admit that things may not always go how we plan.  If we are open to believe that life can instantly change, we can prepare today so that, even though people are saddened, they will not be forced to abruptly change their lives because we refused to plan for the unplanned.  We need to prepare for their tomorrows.

Prepared or not prepared? - that is my question...

There are optinal benefits with many  LTC plans.  How do they work and which are more useful and useble than others?  Diane shares optional benefit options that used to be offered and also which ones to consider seriously if you are planning today.  Please join us on Thursday, Sept 9th at 10 AM pst/1 PM est for a Zoom webinar "Women and Long Term Care"  we will be addressing many questions that women have about LTC and LTC insurance.  Register here 

What is Restoration of Benefits? What other optional riders are available?

Thomas in New Mexico wants to know why sharing his financial details is needed to run a quote for LTC insurance.  Diane offers  multiple reasons why it's important to understand how you expect retirement to be like in order to determine the best way to protect your family and your savings with LTC coverage.  We may uncover a way to pay for coverage without impacting your monthly budget.  It's important to work through ideas to learn the wisest way to be Prepared for Tomorrow.

Why do you need to know my financial information to get me a quote?

Nicole wants to know how using the LTC benefit will affect the death benefit in a life/LTC combo product.  Diane shares some different ways the insurance companies design these plans and how they pay.  Plans and benefits need to match the goals of the policy owner and their family.  Let's discuss what kind of plan will work best for you.

Will using the LTC benefit decrease the death benefit? How?

I'm amazed at how many people in the last week have told me they wish they would have taken the new Washington tax, or WA Cares Act more seriously sooner, when more options were available from insurers.  Today, in Washington, there are only a few companies offering limited LTC coverage options.  Other states are watching to see if the WA plan will work, and several are already developing drafts for their own state as every state is working to figure out how to afford to provide for those who can't or won't plan for themselves.  Don't wait until your state throws everyone into a panic to "hurry up" and buy LTC insurance without first educating yourself, and then designing a plan that meets your family's needs.

Coming soon to a state near you...

This week, Kristina Garcia with the Carrollwood Beacon in Tampa, FL, asks about mistakes people make or things people fail to consider when planning for future long term care needs. There are several, but two stand out to me as I have worked too often with people who looked at options many years ago and are looking again today.  Others planned ahead but didn't consider future costs in their strategy.  Listen and learn what they are.  Thank you Kristina, for helping to educate families who want to make wise choices.

What are the biggest mistakes people make when considering LTC insurance?

After last week's episode on tax deductibility of LTC insurance premiums, we received multiple inquiries about taxes and C corporations paying for LTC insurance for some key employees.  This is apparently a HOT TOPIC!!!  Yes, corporations can often deduct premiums paid for employees, the employees receive LTC coverage with tax free benefits, and the employee's gross income is not increased by this employer benefit.  Listen and learn how this strategy works and ask us to help you decide if this can be offered to your employees.

Can a corporation pay AND deduct LTC premiums for key employees?

Kevin in Colorado asked what a tax-qualified LTC plan is and wants to know how a tax qualified LTC plan can benefit his family.  Diane shares when tax-qualified plans were put into effect and how they benefit consumers and business owners when both paying premiums and receiving benefits.  Thank you in advance for sharing this with those you care about most.

What does Tax-Qualified mean?

Beth Dhont at the Community Food Pantry asks another great two questions!  She wants to know what are some critical or costly "items" that may not be covered by LTC insurance.  Diane shares how LTC insurance works and what to pay attention to when planning and also when opening claims so you can be sure to get the most from your plan.

What are some pitfalls to watch for when considering LTC coverage options?

Maggie wants to know if she can place assets into a trust and qualify for Medicaid to pay for LTC needs.  That is a complex question, and Diane shares how that strategy compares to using LTC insurance to pay.  Every strategy has advantages and disadvantages, and we need to carefully consider each when making these important decisions that can protect our family, assets and choices.

Can I put my assets into a trust and ask Medicaid to pay for my LTC?

Diane Stoddart, Certified Long Term Care Consultant, will show you how to protect your family and loved ones from the financial, physical and emotional burdens and consequences when long term care is needed. Each week, Diane will help you to navigate through long term care concepts, terms and options and to discuss what strategies are available that can best protect both your family and your nest egg. We will invite guests to sit with us and share ideas regarding various parts of our lives as they relate to long term care planning.

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Preparing For Tomorrow podcast

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