Long-Term Care Insurance
First Midwest Financial Network* offers access to insurance
products for every stage of life and all financial circumstances, including
long-term care insurance (LTCI). LTCI is an array of medical and support
services for people with degenerative conditions (e.g., Parkinson’s), prolonged
illness (e.g., cancer), a cognitive disorder (e.g., Alzheimer’s), or who are
unable to perform two to three activities of daily living (bathing, continence,
dressing, eating, toileting, and transferring). This assistance can be provided
through a nursing home, home healthcare, an assisted living facility, or adult
Your First Midwest Financial Consultant can help you find the
right LTCI coverage to meet your needs. Important questions to consider
regarding long-term care include:
800-241-1749 to get connected with a First Midwest Financial Consultant
Who Might Want Long-Term Care Insurance?
50-70 who are relatively healthy and have assets worth protecting might want to
consider LTCI. Also, individuals who have a family history of Alzheimer’s,
Parkinson’s, cancer, and even longevity might want to discuss this form of
insurance with a Financial Consultant.
Call 800-241-1749 to get
connected with a First Midwest Financial Consultant today.Meet a
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Why Should I Buy Long-Term Care Insurance?
People are living longer. Americans age 80+ are
the fastest growing segment of our population, and those 65 and older have a 40
percent chance of entering a nursing home.1 Medicare is not long-term
care. It provides care for up to 100 days and only if the care is needed
following a hospital stay. It usually does not cover home healthcare. Medicaid
is available only after full spend down and does not allow a choice of
facilities. Medicaid is, in essence, welfare, and the Medicaid facilities may
not be where you would want your parent to stay.
to get connected with a First Midwest Financial Consultant today.Meet a
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What Does Long-Term Care Insurance Cost?
The average cost for one year in a nursing home is
approximately $86,0002. With the average nursing home stay at two and a half
years1, this stay would cost around $214,000. The average policy
premium for a 60-year-old applying for $150/day, five years of coverage, 90-day
elimination period, and compound inflation would be $2,050. If that same
individual owned that policy for 15 years before needing benefits, it would take
just 100 days of care to recoup his or her premiums and break even.
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What Should I Look for in a Long-Term Care Policy?
Financial strength – Most benefits are not
needed from a policy for 10 to 20 years after issue, so you need a carrier that
has the financial strength to be around in 20 years. Find out how long
they have been in the LTCI business, what their
ratings are, who they are
endorsed by, and whether they have ever had a premium
Adequate daily benefit – Investigate the cost of
care in your area or the area where you plan to retire to determine whether the
policy's daily benefit will provide adequate coverage.
protection – Cost of care has been rising at an average rate of 4
percent a year (based on the 5 year annual growth rate).2 Make sure the benefit you buy will be sufficient
when it is needed in 10 to 20 years by buying inflation protection. Suggestion:
Try using compound inflation up to age 68, simple inflation from 69–74, and no
inflation from 75+.
Comprehensive coverage – Make sure
the policy provides coverage in all the settings in which you are interested
(home care, adult day care, etc.). Also be sure that the benefit period is
adequate to cover the average stay in a nursing home of two and a half
Stable premiums – LTC carriers have the right to
raise premiums. The policies are guaranteed renewable, which prevents a carrier
from singling out individuals for rate increases, but they may raise premiums
for a class of policyholders. Be careful of carriers that are priced
substantially below the competition. Find out if the proposed carrier has ever
increased in-force premiums.
Call 800-241-1749 to get connected with a
First Midwest Financial Consultant today.