Here’s an alarming stat: according to the U.S. Department of Health and Human Services, 70% of individuals 65 or older will
need long term care sooner or later. With numbers like that, EVERYONE is
affected in some way.
In the words of Rosalynn Carter, former First Lady, "There
are only four kinds of people in this world ... those who have been caregivers,
those who currently are caregivers, those who will be caregivers and those who
will need caregivers."
Smart lady, that Ros Carter.
Most of the talk about long term care revolves around the
cost of nursing homes, assisted living facilities and formal in-home care. Of
course, those expenses can be massive.
But long term care situations have hidden costs as well: the toll paid by family
members who spend much of their time as caregivers.
Numbers Don’t Lie
Earlier this year, Genworth (the largest provider of LTC
insurance in the country) compiled data from a group of caregivers and care
recipients in a report called Beyond Dollars 2015.
The study found that 62% of caregivers help provide
financial assistance for their loved ones’ care, paying an estimated $10,000 a
year in out-of-of pocket expenses. On top of that, most caregivers (77%) had to
take time away from their paying jobs; they missed an average of 7 hours of
work per week.
Twenty-six percent reported missing career opportunities.
What Can You Do to Be
The short answer is … think about the future NOW! Beyond Dollars
also found that preparing for long term care in advance reduces the financial
impact in a major way – not to mention the emotional and physical relief that
comes with early planning. And the sooner you start long term care planning,
Another statistic that stands out is that respondents
estimated that $8,000 of the $10,000 of out-of-pocket expenses could have been
saved if they had begun preparing sooner.
In other words, you should act ASAP! The video below gives a
quick overview of how long term care insurance works and what it can do for
AccuQuote is here to help you understand the various long term care insurance options that may be available to you. Whether it’s a standalone policy or an LTC rider on a life insurance policy, we’re here to support you.
Give us a call at 800-442-9899 today!
It’s time to think about things you probably don’t want to
think about: getting old, wearing diapers, and not being able to take care of
In other words, we need to discuss—and you need to consider—long
term care insurance… and not just because November is Long term Care Awareness
Why? Because according to USA Today, there’s a 70% chance that you will need long term care after you reach the age of 65. If you do the math, that means there’s a 91% chance either you or your spouse will need long term care at some point. All this means that it’s a safe bet that if you buy some form of LTC insurance, you’ll actually need it down the road.
How Do You Get Long Term Care Insurance?
There are two ways to make sure you’re covered with long term care insurance–you can either buy a life insurance policy with a long term care rider, or you can buy standalone long term care insurance. With either option, you’d receive funds to cover care needed for activities of daily living or a severe cognitive impairment (if you qualify), including home health care, assisted living facilities, nursing homes, etc.
Why should you consider long term care insurance? Why buy it as a rider?
At AccuQuote, we can help you regardless of which route you choose, but here are some compelling reasons why you should explore purchasing long term care insurance in the form of a rider added to your life policy:
Live-in care can cost $200 a day and a nursing home can be up to $300 a day (and that’s today; it’ll only cost more years from now!)—that’s as much as $219,000 a year if both you and your spouse need care simultaneously. Without long term care insurance, that financial burden could fall to your kids or other loved ones (that is, after your savings have been completely wiped out!)
Standalone long term care insurance can be very costly, and the rates can be raised at any time; LTC rider premiums are guaranteed NOT to increase as long as your policy is in force!
There’s a 90-day waiting period before traditional long term care insurance policies will begin paying your benefit; NOT the case with many LTC rider policies!
Premiums could be WASTED if you buy a standalone policy and never file a claim!
A long term care rider is a surprisingly affordable addition to a traditional life insurance policy
How does it work?
With an LTC rider, the life insurance death benefit is like a pot of money. It can be used for LTC or it goes to your family (a win-win) when you die. To learn more, check out the video below.
As I mentioned earlier, we’re
here to support you in whatever choice you make. If you have any questions about long term
care insurance or how a traditional life insurance policy can be used to cover
the cost of long term care, give us a call at 800-442-9899. One of our
specialists will help you analyze your needs and figure out what kind of
coverage may work best for you. Or, if you prefer, you can
request a free long term care insurance quote HERE. Just enter your information
and someone will call you to discuss your options.
I’m sure you understand the basic premise: if you have it,
your family gets money when you die.
If you’ve been reading this blog, watching AccuQuote’s YouTube
channel or opening our emails, you’re probably better educated than 90% of
your peers. You may be aware of the tips I’m about to share, but even if that’s
the case, they merit repeating (this stuff is that important!).
Not Shopping Around
Every life insurance company has a variety of products with
different features and costs. If you don’t
compare companies to make sure you get the right
coverage at the right price,
you’re probably not getting either.
Instead of doing all the research yourself – or settling for
whoever your parents are insured by – AccuQuote makes it quick and easy. We do
the research for you! Our quoting software checks out products from over a
dozen top-rated insurance companies to find the most affordable rates. Our customers save up to 70%!
You may be surprised by how much coverage you can get on
Failing to Prepare
for the Exam
To get the best possible rates, you have to prove you’re in
good health. That means taking a medical exam. Your activities in the days before the exam
have a major impact on the results.
Fortunately, there are specific steps you can take to “put
your best foot forward.” The video below explains what you can do.
If you don’t take these exam tips seriously, you could get
bumped into a lower rate class than you would ordinarily qualify for. That could
cost you thousands of dollars.
For example, let’s imagine a 45-year old man applies for
$250K, 20-year term policy. He doesn’t smoke and he’s pretty healthy .
Imagine he goes overboard on coffee and potato chips the day
before the exam. His blood pressure could go up enough to ruin his chances of
getting a preferred rate class. He may end up getting a standard rate class. He’d
have to pay $52.68/month for his policy instead of the $34.39/month he’d pay if
he had followed the tips from the video above. That’s $219.48/year…$4,389.60
over the life of the policy.
Waiting Too Long
Let’s say the man from the example above decides to wait 5
more years to buy his policy. Instead of paying $34.39/month, now he has to pay
$50.50. That’s an additional $193.32 per year…like paying for 5 extra months of
premiums every single year.
And that’s assuming his health doesn’t decline in those 5
Skipping Your Policy
It’s a smart idea to check in with a life insurance
professional once a year. A few minutes
on the phone will help you make sure your policy keeps up with any life changes
You may need more
coverage if you got married, have new kids, earn more money, bought a new
You may not need as
much coverage if you got divorced, your kids became financially independent
or you wiped out debt (like a mortgage).
The best way to make sure your coverage still “fits” is to
review your policy. You can call us at 800-589-0465 for a free policy review even if you didn’t buy your policy from us.
In most cases, you won’t want to make “balloon payments” on
your life insurance. Check to make sure your policy GUARANTEES your premiums
will never go up. Most term and permanent life insurance policies can be
structured in this way.
Not Buying Life
This mistake doesn’t cost you, but it could be devastating for your family.
The last check you’ll ever give your family will come from
your life insurance company. If your family’s lifestyle depends on the money
you make, things will get tight when that money stops coming in.
Dying can be expensive, too. A funeral, medical bills, etc.
can put a lot of extra financial strain on your family. Life insurance can
cover those costs and give your family the resources to maintain the lifestyle
you want them to enjoy.
Not Buying Enough
When talking with people about how much life insurance to
buy, one of the questions I often ask is, “How long do you plan on being dead?” If you’re only going to stay dead for a few
years, your life insurance only has to replace a few years’ worth of income.
If your death is likely to be permanent, your policy needs
to reflect that.
(Intentional sarcasm above!)
How many years of income do you want to provide for your
family? Our super-simple Life
Insurance Calculator can help you figure out how much life insurance is
enough to adequately protect your family.
We’re here to give you all the information you need to make
educated decisions about life insurance. Give us a call at 800-442-9899; we’ll
help you avoid these and other mistakes that could cost you thousands of
dollars and prevent unnecessary stress in the long run.
You can get your free life insurance quote here. It only takes a minute or two.
By now I’m sure you know that I’m always happy to talk to
media about the most important product mankind ever invented (life
insurance). Not only am I willing to
give my expert opinion, I also make sure media know that I’m available when and
where they want to chat.
What absolutely kills me is when I see incorrect information
put out there by the press, and I know that one way to combat that is to have
them talk to ME! This is part of the
reason why I’ve become a go-to source for media.
I’ve been in this game for almost 30 years, so I’ve seen
personal finance writers and reporters move around a bit. I know Rodney Brooks from his decades at USA Today (here’s
a piece by him from last year that includes quotes from me; it also appeared in
Huffington Post), but now he’s
working at a couple other places, one of which is a neat website called Retirement
HQ. The site targets consumers
getting ready to retire or who are already retired, and it’s both educational
Rodney recently called on me to talk long-term care
insurance (which we sell here at AccuQuote).
Check out my comments and Rodney’s story here.
As always, we're here for your life insurance, long-term care insurance and disability insurance needs. Get a free life insurance quote here, and email me at ByronUdell@accuquote.com if you have any questions or comments.
In a recent blog post, I
talked about a frightening statistic that showed how many people do not have
life insurance. Well, a recent article by ConsumerAffairs.com focused on one specific part of the
Life insurance ownership is
even lower among American women, and despite old-school thinking on the matter,
this is a major problem. It will be an even larger problem as baby boomers
continue to age.
According to the article, only 40% of women have any life insurance at
all. Those that do own a policy have 30% LESS than the men have, on average.
No matter what your
situation (or your sister’s or friend’s situation), life insurance is something
you need to seriously consider.
According to the ConsumerAffairs.com article, 70% of single
parents have no life insurance, and 83% of single parents are mothers.
You’ve been the breadwinner
and caregiver for your children. You’ve done everything you can to protect
them. But what if something happens to
you? Can you afford to leave them unprotected during what will be the most
difficult time imaginable?
Stay at Home Moms
Ask any stay-at-home mom and
she’ll tell you – she’s the hardest working person in the household. If she got
a salary for everything she does, she’d earn about $9,750 per month, according
to recent surveys.
But what if you suddenly passed away? Can your husband afford to write fat checks
every month to pay other people to do the work she did?
Most responsible couples
have life insurance coverage for both the husband and the wife. I talk about
this more in the short video below.
Working moms provide $71,860 per year worth of servicesin addition to their salaries from their
jobs, according to the survey I mentioned above. That’s probably no
surprise to you!
Even though it would be
impossible to replace you, life
insurance can replace the economic value of the work you did at home and on the
job. It can also give your family the money they need to grieve without
worrying about how the bills will get paid.
Women with No Children
If you don’t have a spouse
or kids, do you still need life insurance?
The answer is simple: if
your death might cause a financial hardship to anyone – from aging parents to the business you own – then yes, you still need life insurance.
If nothing else, you don’t
want to leave your final expenses and other outstanding debt as a burden for
someone else to deal with, do you?
I hope I’ve encouraged you
to at least think about buying a policy
if you don’t have one. If you do have one, are you sure you have enough coverage?
This handy calculator
will help you estimate how much life insurance is enough for your
Remember, whether you have a
great career or you’re a “homemaker,” it would take thousands of dollars every
month to replace the work you do.