You or your spouse are increasingly likely to have a Long Term Care event during your retirement years. But most people don’t realize how expensive Long Term Care can be. And contrary to what many people believe the majority of it is not covered by most private health insurance plans or by Medicare.

• Average cost of a Nursing Home is over $70,000 a year*
• Average cost of Home Care Aid is $32.50 per hour*

Perhaps the biggest missing component in most people’s retirement plan is preparation for the potentially devastating financial impact of an illness requiring Long Term Care.

If you are relying on your health insurance or Medicare you may be in for a surprise. Medicare doesn’t offer extended Long Term Care coverage. (Medicaid does, but only if you are legally destitute). The statistics can be shocking. Nearly two-thirds of people over age 65 will need Long Term Care at home or in a facility.*

However, Long Term Care insurance isn’t right for everyone. Work with a Long Term Care specialist to find the type of plan that fits your needs and budget.

>> Go Here to take the first step to make a plan for your Long Term Care needs»

ACSIA Long Term Care, Inc. is proud to represent the top carriers in the Long Term Care Insurance industry. We have carefully selected our carrier partners based on their experience, ratings and customer credibility. They have demonstrated to us that they are committed to their policyholders through policy benefits, premium pricing and claims-paying history. We are proud to be associated with them.

* U.S. Department of Health and Human Services National Clearinghouse for Long Term Care Information, 10/22/08.

Advice on Personal Insurance & Commercial Insurance. Copyright ©. All Rights Reserved.

Bill would increase funding for research

It’s been talked about for years. Congress could make it a law. You would not be able to start your car if you’ve consumed too much alcohol.

Two members of the U.S. Senate, one a Democrat and the other a Republican, have taken a step, sponsoring the ROADS SAFE Act, which would authorize $12 million a year for the National Highway Traffic Safety Administration (NHTSA) to develop technology that would prevent an intoxicated person from driving a vehicle.

The objective, of course, is to prevent drunk drivers from getting on the road and causing fatal accidents. Senators Tom Udall (D-NM) and Bob Corker (R-TN) co-sponsored the legislation, expressing hope their bi-partisan approach will help secure passage.

Rising death toll

In 2008 alone, drunk driving killed 11,773 people nationwide, including 143 in New Mexico and 327 in Tennessee. It is estimated that 8,000 lives could be saved each year if all vehicles were equipped with advanced alcohol detection technology.

"While New Mexico has been a leader in reducing the number of drunk drivers on the road, drunk driving continues to be a primary cause of fatal crashes in New Mexico and nationwide – and even one death caused by a drunk driver is unacceptable," Udall said. "This legislation will help keep Americans safe on the road by spurring the development of new technologies to prevent – and virtually eliminate – drunk driving crashes in the future."

"Drunk driving destroys thousands of lives every year in America. The ROADS SAFE Act will invest in new technology research that could help put an end to these preventable deaths and improve highway safety," Corker said.

Lots of support

The two lawmakers appear to have plenty of support from key interest groups. As you might expect, Mothers Against Drunk Driving (MADD) is enthusiastically behind the legislature. So is the Alliance of Automobile Manufacturers.

"We commend the leadership of Senators Udall and Corker in proposing this life-saving legislation, said association president and CEO Dave McCurdy. “Through the groundbreaking partnership between NHTSA and leading auto makers, substantial progress is being made on the technology front. The additional resources that the senators propose will assure continued advancements in technology as well as funding to assess the public acceptance and other significant matters that are key elements of this activity.”

Concern

Not everyone is enthusiastic, however. The American Beverage Institute said it is concerned anti-alcohol devices in cars won’t be able to distinguish someone who had a glass of wine with dinner from someone over the legal limit.

There is an existing technology that requires a driver to blow into a tube before a vehicle will start. Currently, it’s not mass produced and is installed only by court order for repeat DWI offenders.

As usual, California is out in front on the issue. The state legislature is reportedly considering a similar bill to fund research.

Advice on Personal Insurance & Commercial Insurance. Copyright ©. All Rights Reserved.

For more information, please visit http://www.aaltci.org

The first major open enrollment for the nation’s largest group long-term care insurance program begins April 4 (and runs until June 24).

Millions of federal employees are eligible, as are postal service employees, active military — spouses and (for the first time) same-sex partners.

The Federal plan has ‘simplified’ health underwriting (basically 9, Yes or No "knock out" questions).  That makes the program very attractive for many.

But, as a group plan, there are no discounts for good health, and no discounts for couples or partners when both apply (and 70% of long-term care insurance is purchased by couples).  Attached is a summary which includes rate comparisons from our 2011 LTC Insurance Price Index.  Couples (especially) who can health qualify for private long-term care insurance can generally obtain equal coverage for less money.  They can even get better coverage for less money(as we show some scenarios including the Shared Care option which is extremely valuable).  That’s an important message I hope you’ll convey to educate consumers.

The Federal plan currently has over 200,000 participants … and I hope that doubles with the new Open Enrollment. 

During the last major enrollment (2002), thanks to all the added awareness, sales of private long-term care insurance were higher than normal.  Obviously, we hope that happens again too.

If you have questions, please call the American Association for Long-Term Care Insurance.

The Association now has over 3,200 long-term care insurance professionals who can be found using our Online Look-Up. 

Jesse Slome, Executive Director
American Association for Long-Term Care Insurance

http://www.aaltci.org

Advice on Personal Insurance & Commercial Insurance. Copyright ©. All Rights Reserved.

Tornadoes, Floods, Wildfires…and we just began Hurricane Season!

After the March tornadoes, I posted a Top Ten List of extremely important things to do after your property is damaged in a disaster. In the next ten postings, I’m going to expand on each of the strategies in the Top Ten List.

Back in March, we here in the metro Atlanta area had an F4 tornado strike the downtown area of Atlanta. That tornado did about $300 million in damages. About a month later, another group of twisters hit between Atlanta and Macon, doing about the same amount of damage.

Now, we’re seeing tornadoes all over the middle of the USA, and massive flooding has struck four or five states, affecting hundreds of thousands of people. And don’t forget the wildfires charring Southern California.

But…cheer up! We have a long Hurricane Season that began June 1, and goes until the end of November!!

The first strategy in the Top Ten List is….SLOW DOWN.

How many times have you heard an insurance company’s radio or television commercial say how fast they settle claims? That really sounds good, doesn’t it? Who wouldn’t want their claim settled quickly?

But my experience has been that hastily settled claims are settled far below what they are worth. It’s almost as if the policyholder or claimant becomes willing to give the insurance companies a big discount in return for the speed of getting a settlement check.

Don’t be one of those people who are motivated by a quick settlement check.

I’m not suggesting that you should drag your feet and be uncooperative in the process. You should be very cooperative…but on your own terms, not the insurance company’s terms. I’m saying that if you are in control of the claims process like you should be, it will not usually be speedy.

The process will move along in a businesslike manner, but you must not allow yourself to be rushed into a settlement. Even if the insurance company sends you a check before you’re ready to settle, you’re not required to cash it.

Let’s look at the first 24-48 hours after you have a loss. It really does not matter if your loss is small or large or a jumbo catastrophic disaster. It does not matter if your loss is a property loss…like a hurricane or tornado or fire, or a casualty loss…like an automobile accident. There are some things that you must do to protect yourself, your family and your property.

FIRE, CATASTROPHIC WINDSTORM (HURRICANE/TORNADO) OR FLOOD CLAIMS

FIRST THING TO DO IS TO CONTROL THE SITUATION

1. Make sure everyone is safe and accounted for…including the pets.

2. Get medical attention for anyone in the family that needs it…including the pets.

3. Contact your public utility companies. Have them send out a technician to shut off the water, power and gas immediately. That itself will increase the safety factor in your damaged dwelling.

Speak with the Fire Marshall and the local Building Inspector regarding the safety of the dwelling. You want to be sure it’s safe for you to enter the dwelling after the loss. If it is not safe, don’t go in there…no matter what. You can replace STUFF, but you cannot replace YOURSELF.

AFTER THE UTILITIES ARE SHUT OFF, AND BEFORE THE RESTORATION COMPANY BOARDS UP THE DWELLING…SAFELY do the next step.

4. Camera work

Get hold of a video camera and a couple of video tapes. You might need a floodlight or other very powerful battery-powered light. If your dwelling is safe to walk through, take video footage of every room in the house where there is damage. Take footage from every angle in every room. Make sure you take footage of your damaged contents. Shoot footage inside closets…in open drawers, inside boxes, on bookshelves, inside cabinets, in the garage where lots of junk is stored. Take shots of all four sides of your home from the outside. Take footage of the debris in the yard, especially if it has contents items that the fire department threw out in the yard.

If you can’t get a video camera, then use a digital camera and take still photos. If you can’t get a digital camera, use a 35mm camera. Use the camera in your cell phone. Heck, use disposable cameras. JUST TAKE THE PHOTOS AND GET YOUR DAMAGES ON FILM!!

NEVER give your film negatives or original videotape to the adjuster. Give copies of the photos and videos, if they ask for them. Keep track of your expenses for photos and videos…you can recover that cost.

Want to know why camera work is so important?

-A photo is worth a thousand words.

-Photos trigger memories, and remind you of building and contents items that were destroyed or damaged.

-Time is of the essence. If you’re adjuster can’t get to your property for a couple days (or weeks in hurricane losses), and you need to protect your property, you can carefully photograph the areas that you are protecting before you cover them or alter them. That way, you’ve preserved evidence of the damages.

5. Notify your relatives or closest friends of the loss. Friends and relatives can be extremely helpful to you…but only if YOU control what they do.

A. Do NOT take advice from your friends and relatives, unless they have experienced a loss EXACTLY like yours, and were successful in getting every dollar they were owed. If that actually happened, they probably have a copy of this book and followed my advice to the letter.

B. Friends and relatives can be great witnesses of the damage. They can help take photos and videos. They can be witnesses when you meet with the adjuster or your contractor. They can babysit for you. They can store things temporarily for you. They can take care of your pets. They can make beer runs to the store for you while you’re taking care of your claim.

6. Notify the insurance company. It is certainly acceptable to phone the agent or company claim department first, but be aware that many policies require you to report a claim in writing. Make sure you know what your policy language says regarding submitting a Notice of Loss. THIS IS CRUCIAL!!! If you do not notify your insurance company of your loss in the way the policy says to do it, your claim could be denied.

7. Determine what it’s going to take to secure your property and protect it from further loss. This is part of your responsibility in your insurance contract. If necessary, contact a disaster restoration company to board up the building, or tarp the roof, or extract the water, etc. IF YOU DO THE WORK YOURSELF, OR ALLOW OTHERS TO DO FREE WORK FOR YOU, THE INSURANCE COMPANY MAY NOT PAY YOU FOR YOUR TIME.

8. SERIOUSLY CONSIDER HIRING A PUBLIC ADJUSTER (PA) IN THE FIRST 24-48 HOURS (see Chapter Nine about Public Adjusters in my book).

9. If you need to contact an emergency service provider or disaster restoration contractor, go to the websites listed below to find one.

SUPER IMPORTANT TIP!!!

A restoration contractor is very different than a general contractor. Most general contractors who do remodeling or new construction do not have the skills and knowledge that a restoration contractor has.

For one thing, the restoration contractor is very familiar with the insurance claims process, and how insurance companies pay for repairs. The restoration contractors use similar estimating software to that used by the adjusters and insurance companies. A general contractor who submits an estimate in an unacceptable form to the insurance company or adjuster just annoys them, and slows down your claim.

Another reason to find restoration contractor is that they are usually full service contractors. They will be able to do temporary or emergency cleanup and board up. They will own the equipment for drying and water damage remediation. They are familiar with the kinds of damage that fires, wind and water do to homes. Finally, they are experts at writing accurate estimates for these specific kinds of damages.

General contractors who do not make their living in insurance restoration do not have this kind of equipment and experience. Period.

You can also look in your local Yellow Pages under “Disaster Restoration,” or “Fire Restoration,” or “Water Damage Restoration.” Look for logos that say “DKI,” or “ASCR,” or “AAORC.”

DKI – Disaster Kleen-up International. Headquartered in Chicago, IL, is a network of the leading independent property damage restoration contractors across North America. You can ask for a referral at 888-735-0800, and also find them at: http://www.disasterkleenup.com

ASCR – The Association of Specialists in Cleaning and Restoration, Inc. is the leading trade association for cleaning and restoration professionals worldwide, and the foremost authority, trainer and educator in the industry. You can ask for a referral in your area at 800-272-7012, or the website: http://www.ascr.org

AAORC – American Association Of Restoration Contractors, is a national network of reputable and reliable restoration contractors who provide top-notch restoration services. You can call them toll free at 866-771-1525, or look them up on the Web.

Call at least two restoration contractors, if possible. Ask them to meet you at your home to inspect the damage within 24 hours of the loss.

Remember this important point…there is NOTHING in your policy that requires you to get two or three estimates. Meeting two contractors is just a smart way to find one that you like best and want to work with. Check out their references, and ask them for a list of satisfied customer that you can call by phone. ONLY AFTER THE CONTRACTOR CHECKS OUT should you hire him.

10. TIME TO GET ORGANIZED

Start A Document File

I’ll expand on this point in a later article because it’s super important and there’s a lot to say about it. Just go get a box with a lid to start with. Don’t wait…do it right away!!

11. Meet the adjuster. (First, read Chapter Seven, Claims Adjusters.)

The following procedure is what a professional claims adjuster SHOULD DO at your first meeting:

Introduce himself and give you his business card.

Sit down with you FIRST and explain what he is about to do.

Find out from you if you’ve ever had a loss before.

READ YOUR POLICY WITH YOU, and answer all of your questions.

Explain in detail the claims process, and the steps he will be taking.

Explain to you, the insured, what your responsibilities are in the claims process.

Then, after all of that…..he should inspect your damage.

If your adjuster does NOT do all of the above, in basically that order…you must realize that you may have a problem right away.

Here’s another tip about adjusters. Most adjusters are likeable people, and try their best to get along and be pleasant. Occasionally, you’ll find an adjuster who is disagreeable, rude and sharp tongued. If you find that you don’t get along with the independent adjuster that has been assigned to your claim, call his supervisor and request that another adjuster be assigned to this claim. Make your request politely but firmly. You do not have to take abuse and poor treatment from an adjuster. If the claims supervisor won’t change the adjuster, call the insurance company and ask them to assign the claim to another adjusting company.

If you’re dealing with the insurance company’s staff adjuster, and getting treated badly, call his supervisor and firmly request another adjuster. If the supervisor doesn’t cooperate, go to his supervisor. Keep going up the ladder until you get what you want. If none of this works, call your State Department of Insurance and file a complaint.

Many times you can meet the adjuster at your location on the same day as the loss occurred. That’s the ideal situation. Some damages can be mitigated (made less severe) by the speed that cleanup begins. For example, you have an icemaker supply line that bursts while you are out, and the red oak wood floor in your dining room gets very wet. If you can get the water up off the floor, and drying equipment in the room quickly, the floor will likely not swell and buckle…and the floor can be saved. If you had to wait 1-2 days for the adjuster to arrive, the floor would likely have to be replaced at much higher cost.

At this first meeting with the adjuster, make requests for advance payments, if necessary. (See Chapter Nineteen, Advance Payments.) If you’ve had a major Contents loss, like fire, smoke or water damage, you’ll need to replace some of these items quickly. If you have had a loss which leaves you unable to live in your home temporarily, you’ll need money to pay for hotel rooms, or temporary housing, or a short term lease for a house or apartment (Additional Living Expense coverage). Insurance companies will make these types of advance payments to the insured when the advance is requested. They seldom offer an advance.

That’s all for this first strategy. Watch for more crucial information on the other strategies in the Top Ten List!

Copyright 2008 by Russell D. Longcore

P.S. I wrote a book that YOU need!
check out: http://www.insurance-claim-secrets.com
NUMBER ONE at Amazon.com in its category!

Advice on Personal Insurance & Commercial Insurance. Copyright ©. All Rights Reserved.

The best time to learn how to file an insurance claim is before you actually have to file one. The process may go smoother and your insurance company may be able to settle your claim quicker if you are prepared.

Being prepared means knowing what your policy covers. It’s recommended that you review your policy with your agent once a year. It’s possible your coverage needs have changed. Or, you may want to adjust your deductible.

If you do need to file a claim, the process is generally a simple one. Most insurance companies offer 800 numbers. You may also be able to file the claim online. After you file a claim, be prepared to answer questions from an insurance adjuster. The more information you can provide, the smoother your claim may go.

Here is the video on Youtube:

Advice on Personal Insurance & Commercial Insurance. Copyright ©. All Rights Reserved.

Los Angeles, CA — Individuals purchasing long-term care insurance in 2009 tended to be slightly older and selected less costly policy features according to the American Association for Long-Term Care Insurance (AALTCI) annual study. The organization’s research was based on an analysis of 155,000 individual placed policies.

“Clearly the economy is having an impact on when individuals start their long-term care planning and what benefit levels and policy options they select,” states Jesse Slome, executive director of the long-term care insurance industry organization. According to the annual study, 73.5 percent of buyers of individual policies were age 55 or older when they applied for coverage compared to 69 percent for the prior year (2008).

When it came to choosing benefit options, the study found a slight increase in the percentage of individuals selecting lower benefit levels and longer elimination (deductible) periods. Both contribute to lower premium costs. Some 43 percent of buyers selected initial daily benefit amounts of $149 or less; compared to 37.5 percent for the prior year. The vast majority (92.2 %) of buyers selected elimination periods of 90 days or longer; compared to 86 percent for the prior year.

“The most common benefit period selected remains three years,” Slome notes. Some 29.5 percent of buyers selected a policy designed to pay benefits for at least three years. The overwhelming majority added an inflation growth option that increased benefits each year. “The 5 percent compound growth factor, chosen by 47 percent of buyers, can double or triple the cost of the base plan of insurance protection,” Slome adds. “Buyers understand they are protecting future risk and saved in some areas but were willing to pay more for this important option.”

The Association added two new areas to the 2009 study; average premium paid and marital status at time of purchase. According to the findings, the average buyer between ages 45 and 54 paid $1,900 annually for their coverage. “There was a significant average price range between companies,” Slome notes, “from as low as $1,000 to over $3,200 for this age segment.”

The vast majority of buyers of long-term care insurance are married. According to the report, some 54 percent of purchases involved couples covering both lives. Nearly one-fourth (24%) involved couples or partners where only one individual was covered with 22 percent of policies purchased by single individuals.

The complete findings of the survey will be contained in the 2010 Long-Term Care Insurance Sourcebook published by the American Association for Long-Term Care Insurance. For more information visit the organization’s Website: http://www.aaltci.org/.

Advice on Personal Insurance & Commercial Insurance. Copyright ©. All Rights Reserved.

The Federal Long-Term Care Insurance Program (FLTCIP) provides long term care insurance to help pay for costs of care from simple ailments to complex syndromes. The Federal Long-Term Care Insurance Program reflects the long and careful efforts of the U.S. Office of Personnel Management and two insurance leaders – John Hancock and MetLife – to provide affordable group premiums and comprehensive benefits.

Recently, the U.S. Office of Personnel Management has signed a contract with John Hancock Life and Health Insurance Company to provide insurance for the Federal Long Term Care Insurance Program’s second 7-year contract term.

Part of the proposed federal health plan being discussed today by the U.S. Senate includes proposed long term care protection. The proposed Community Living Assistance Services and Supports Act (CLASS Act) would provide coverage paid by individuals who would have the ability to opt out.

The Federal Long Term Care Insurance Proposal is a great deal for current baby boomers but will burden the next generation of seniors with higher taxes. According to the document, the plan’s proponents believe a $65-per-month tax for individuals would be sufficient to provide a $50 average monthly benefit. However, the study reveals that the sound monthly premium level would be closer to $110 a month or over $1,300 a year per-individual.

The CLASS Act proposes a voluntary federal program that is sustainable and actuarially sound over a 75-year horizon. Based on the current assumptions, the independent actuaries project the new government fund will be insolvent by 2027 to pay for long-term care claims.

Anyone born after 1962 will realize the increase of taxes required to sustain this will be imposed when they realize the funds will run out.

The debate of health care reform continues.

The full 13 page letter to the U.S. Senate Committee on Health, Education, Labor and Pensions from P.J. Eric Stallard (Chairperson, Federal Long-Term Care Task Force of the American Academy of Actuaries) and Steven Schoonveld (Chairperson, Long-Term Care Insurance Section Council of the Society of Actuaries) can be found here in this PDF.

Actuarial Issues and Policy Implications of a Federal Long-Term Care Insurance Program

Here is the Executive Summary:

Our actuarial analysis indicates that the proposed structure and funding approaches in the CLASS Act, as introduced on June 9th, will not only be unsustainable within the foreseeable future, but are unlikely to cover more than a very small proportion of the intended population. In the absence of an actuarially sound requirement, we project that the Fund will be insolvent as early as 2021, or within 11 years. The opt-out and guaranteed issue provisions of the plan pose a significant and likely risk that, in a relatively short time period, the program will either need increased premiums and/or significant reductions.

The version of the bill reported on July 15th includes an amendment requiring an actuarially sound program over a 75-year period. We commend this change in the legislation, with the caveat that the requirement may not be possible to achieve unless the issues explored in this letter are addressed. There is considerable risk of adverse selection, which could necessitate future increases in premiums or reductions in benefits to maintain a sustainable program. As these changes are introduced there is a significant potential for increased adverse selection, necessitating further changes, which may make the program unsustainable. The premium estimates suggested below are optimistic as they assume only a modest level of adverse selection.

Our principal analysis is performed assuming an average daily cash benefit of $75 increasing annually with the Consumer Price Index (CPI). We have also provided an analysis using the minimum average daily benefit of $50 called for in the legislation, increasing annually with CPI. Furthermore, we have reviewed two potential premium structures, an entry-age level premium and an annual increasing premium approach.

We estimate that the actuarially sound average monthly premium level would be $160 using an entry-age level premium approach and assuming an average daily benefit of $75. Under an annual increasing premium approach, the average monthly premium would be $125 per month increasing annually with CPI. Based on the originally proposed $65 average monthly level premium, the fund would be insolvent by 2021. Under the increasing premium approach the fund would be insolvent by 2022.

Using a $50 initial minimum average benefit, we estimate that an actuarially sound average monthly premium level would be $110 under the entry-age level premium approach and $86 using the annual increasing premium approach. Based on the originally proposed $65 average monthly level premium, the fund would be insolvent by 2027. Under the increasing premium approach the fund would be insolvent by 2032.

Each of these premium estimates is significantly in excess of the $65 monthly average initially proposed in the CLASS Act. These estimates were based on a series of scenarios, using actuarial assumptions, which we will detail later in our comments.

A voluntary federal LTC program can be developed so that the program is sustainable and minimizes the impact of adverse selection. Such a program would require the use of a stronger actively-at-work definition, an underwriting approach for the coverage of non-working spouses, stronger participant opt-out/ opt-in restrictions, consistent eligibility definitions for benefits and potential program design changes that would result in more affordable premiums. These considerations, along with a strong marketing and education effort, could enable the development of an actuarially sound voluntary federal program that encourages broad participation and a sufficient spread of risks.

Advice on Personal Insurance & Commercial Insurance. Copyright ©. All Rights Reserved.

Check out “Insurance Company Rules” – a collaboration between Health Care For America Now (HCAN) and Public Service Administration (PSA).

Here is the video on Youtube:

Advice on Personal Insurance & Commercial Insurance. Copyright ©. All Rights Reserved.