Buying And Selling Long-Term Care Insurance

Long Term Care Insurance State Tax Deduction Guide Published

2012-01-19T15:03:00.000-08:00

Long term careinsurance premiums may be fully tax deductible for individuals and a growingnumber of states now offer deductions and even tax credits to those purchasingthis important coverage.

According to the American Association for Long Term Care Insurance, thenational trade organization, tax deductibility gives individuals and businessowners one very important reason to consider ways to address future long termcare needs.

“Americans are living well into their 80s, 90s and even longer when thelikelihood of needing extremely costly long term care services is almost aguarantee,” declares Jesse Slome, executive director of the AmericanAssociation for Long-Term Care Insurance, the national trade group charged withcreating awareness for long term care related issues. “The federal and state governments recognizes thisand offers the tax incentives to encourage more people to plan.”

Individuals may be able to deduct long term care insurance premiums paid fromtheir 2011 federal income taxes. The federallevels are based on your age, Slome notes, ranging from $340 to $4,240per-person and increase for new policies purchased in 2012. Individuals face certain limitations thatare not imposed on self-employed or corporations. “These entities may able to make the fullcost tax deductible,” Slome adds.

In addition to federal tax deductibility limits, a growing number of states nowoffer either tax deductions or tax credits to encourage state residents topurchase long-term care insurance.

The AmericanAssociation for Long-Term Care Insurance has just published a state-by-statelisting of available tax deductions on the organization’s website at www.aaltci.org/tax.

Tolearn more about long-term care planning and get long-term care insurance costsfrom a designated expert visit the American Association for Long Term Care Insurance Information Center.

Long Term Care Insurance Association Opens 2012 Sales Achievement Awards

2012-01-03T07:33:00.000-08:00

The Long Term Care Insurance SalesAchievement Awards is now open for entries effective January 1, 2012.

The yearly award based on 2011 sales isorganized by the American Association for Long-Term Care Insurance (AALTCI),the national trade organization. The2011 award ranked producers from all states broken down into categoriesincluding individual LTC insurance, multilife long term care as well as salesof asset-based annuity and life insurance products offering long term carebenefits.

The awards are designed to recognizeand celebrate outstanding achievements by long term care insurance producers working to educate and helpprotect Americans. “From those producersjust starting out to the many seasoned specialists, there’s no more passionateand hard-working group of professionals than those selling long-term careinsurance protection,” explains Jesse Slome, AALTCI’s executive director.

A special “Rookie of the Year”category now recognizes those producers who first started selling in 2011. A key component of the awards program is theState-by-State ranking. “This gives 50agents the opportunity to show that they are number 1 in their particularstate,” Slome explains. “That’scertainly a powerful marketing tool and these leaders are often called on toteach others and share their knowledge.”

Online applications are available at www.aaltci.org/awards. The closing date for free entries is February29.

Established in 1998, the AmericanAssociation for Long-Term Care Insurance is the national trade organizationthat supports insurance professionals as well as conducts awareness programs toeducate American adults about the importance of long-term care planning.

New Robots Aid In Caring For Japanese Seniors

2011-08-18T06:28:00.000-07:00

A new robot has brought Japan one step closer to its goal of providing high-quality care for its growing elderly population.

The robot uses high-precision tactile sensors and flexible motor control technology to lift patients weighing up to 80kg (180 pounds) off floor-level bedding and into a wheelchair. The developers note this is intended to free care facility personnel of one of their most difficult and energy-consuming tasks.

Japan's elderly population in need of nursing care is projected to reach a staggering 5.69 million by 2015 experts explain. "Japan faces an urgent need for new approaches to assist care-giving personnel," states Jesse Slome, executive director of the American Association for Long-Term Care Insurance http://www.aaltci.org. "The United States will soon be facing the very same issues."

Care experts noted that one of the most strenuous tasks for such personnel, carried out an average of 40 times every day, is that of lifting a patient from a futon at floor level into a wheelchair. Robots are well-suited to this task, yet none have yet been deployed in care-giving facilities.

In 2009, the RIKEN-TRI Collaboration Center for Human-Interactive Robot Research (RTC), a joint project established in 2007 and located at the Nagoya Science Park in central Japan, unveiled a robot called RIBA (Robot for Interactive Body Assistance) designed to assist in this task. The first robot capable of lifting a patient from a bed to a wheelchair and back, RIBA charted a new course in the development of care-giving robots, yet functional limitations prevented its direct commercialization.

In the future, Japanese researchers plan to work together with partner nursing care facilities to test RIBA-II and further tailor it to the needs of care-givers and their patients. They explain their intent to also develop new applications in areas such as rehabilitation.

Robots will one day enable individuals to remain in their own home rather than being forced into skilled nursing facilities, Slome predicts. "This should be a most welcome development for millions of Americans though they can expected to be costly," he notes "People will either need to have the savings or insurance to cover the cost." Current forms of long-term care insurance that provide cash payments would cover the rental or purchase of robots.

The Association urges consumers to learn more about long-term care planning and get long-term care insurance cost from a designated expert via the organization's Consumer Information Center at http://www.aaltci.org/long-term-care-insurance/free-quote/. "The best ages to start planning are between ages 52 and 62 when costs are lowest and you don't risk being declined because of existing health conditions," Slome explains.

Smoking And Weight Tied To Future Brain Shrinkage, Increased Long Term Care Insurance Need

2011-08-02T08:45:00.000-07:00

Smoking, having high blood pressure or diabetes and being overweight during your middle years may cause brain shrinkage and lead to cognitive problems up to a decade later.

According to a new study published in Neurology, the medical journal of the American Academy of Neurology these factors appear to cause the brain to lose volume. Some 38.7 million Americans age 65 and older reported having one or more cognitive disorders according to the 2011 Long-Term Care Insurance Almanac published by the American Association for long-Term Care Insurance.

Health conditions increased the development of lesions secondary to presumed vascular injury, and also appeared to affect its ability to plan and make decisions as quickly as 10 years later. The findings provide evidence that identifying these risk factors early in people of middle age could be useful in screening people for at-risk dementia and encouraging people to make changes to their lifestyle before it's too late.

The study involved over 1,300 people without dementia with an average age of 54. Participants had body mass and waist circumference measures taken and were given blood pressure, cholesterol and diabetes tests. They also underwent brain MRI scans over the span of a decade, the first starting about seven years after the initial risk factor exam. Participants with stroke and dementia at baseline were excluded, and between the first and last MRI exams, 19 people had a stroke and two developed dementia.

Researchers found that people with high blood pressure developed small areas of vascular brain damage, at a faster rate than those with normal blood pressure readings. They also had a more rapid worsening of scores on tests of executive function, or planning and decision making, corresponding to five and eight years of chronological aging respectively.

People with diabetes in middle age lost brain volume in the hippocampus at a faster rate than those without diabetes. Smokers lost brain volume overall at a faster rate than nonsmokers and were also more likely to have a rapid increase in white matter hyperintensities.

"Unhealthy habits come back to haunt millions at older ages," explains Jesse Slome, executive director of the long term care insurance association. "It creates an increased risk of needing long term care in your 80s and 90s a reason why planning prior to retirement is a must especially for those still in good health."

Federal Long Term Care Insurance Plan Closer To Repeal

2011-07-21T08:51:00.000-07:00

The deficit-reduction proposal released Tuesday by the reconvened Gang of Six would repeal the Community Living Assistance Services and Supports Act (known as the CLASS Act).

Created as part of health reform legislation passed last year by Congress political experts refer to the CLASS Act as one of the late Sen. Ted Kennedy’s most cherished programs. It is also a favorite target of Republicans.

"America is facing a future long-term care crisis as the aging population balloons," explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the insurance industry's national trade group. "CLASS has been highly controversial because on one hand it is at least some effort to address the problem though many see it as a very costly future new taxpayer-borne entitlement program."

The President-appointed fiscal commission led by former Senators Alan Simpson and Erskine Bowles singled the CLASS Act out as an “unsustainable” entitlement that would most likely saddle taxpayers with a major new liability, a finding that deficit hawks have latched on to in their attacks.

"Despite the fatal flaws of the CLASS Act, the Obama administration continues to push ahead in implementing this unsustainable entitlement program,” Sen. John Thune (R-S.D.) said in a statement last week. He added that the Department of Health and Human Services is ignoring “all of the red flags raised by the massive new entitlement program that is being created.”

CLASS establishes a voluntary long-term disability insurance program that would pay disabled enrollees a cash benefit for assistance with basic daily living activities such as dressing, bathing and eating. The insurance would be offered through the workplace, where employers who agree to participate would sign up their employees automatically — but also give them a chance to decline the coverage. If they keep the coverage, they’d be able to use the benefits after they’ve paid the premiums for five years.

CLASS Act critics including many leading industry actuaries with decades of experience in pricing and marketing long-term care insurance products argue that the voluntary CLASS program is vulnerable to adverse risk selection. "Critics expect that primarily health-challenged people will sign up for CLASS, those with expensive health problems which means CLASS would not be sustained by premiums alone," Slome explains. "Or, if they artifically price it too low in order to attract more healthy individuals, you face a serious shortfall when they ultimately go on claim."

Some of these problems were intended to be worked out before the Affordable Care Act was passed, but because of its unusual route to becoming law, that never happened experts acknowledge. "The nation definitely needs to discuss how to handle providing care for aging Americans," Slome concludes. "Kicking the can down the road isn't going to keep people from growing older and needing costly long-term care."

To learn more about the CLASS Act visit the American Association for Long-Term Care Insurance website at http://www.aaltci.org/class.

500,000 Long-Term Care Insurance Applicants Expected

2011-06-20T11:34:00.000-07:00

Over half a million Americans are expected to apply for long-term care insurance before the year concludes according to a projection from an industry trade group.

This marks significant continued growth in awareness and action among consumers explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance http://www.aaltci.org. "In 2010 the Association reported that 475,000 Americans obtained long-term care insurance coverage either on an individual basis or through their employer an increase over the prior year."

According to the projection, interest and sales continue to trend up which can be attributed to several factors. "Consumers in their 50s and young 60s are more aware than ever of the risks involved in living into their 80s and 90s," Slome explains. "The millions of pre-retirees understand that government programs will not be sufficient to deal with the burgeoning number of aging baby boomers and that new federal programs will be more suited to those with existing health limitations."

The Association director notes that significant growth in sales will result from the thousands of federal employees signing up for coverage through the Federal Long-Term Care Insurance Program (FLTCIP) where open enrollment closes June 24. "I would expect tens of thousands of newly covered individuals in the program with an equal number who searched and compared coverage on an individual basis," Slome adds.

Over eight million Americans currently have long-term care insurance protection and roughly 200,000 received benefits from their coverage in 2010 according to the 2011 Long-Term Care Insurance Sourcebook. The majority (56 percent) of individual applicants are between the ages of 55 and 64. "People increasingly understand the need to look into this protection prior to retirement age," Slome concludes. "That is when costs are more affordable and you are still most likely able to health qualify for coverage."

New Report Examines What Consumers Really Pay For Long-Term Care Insurance

2010-12-01T07:52:00.000-08:00

One fourth (27.8%) of individuals purchasing long-term care insurance during the first half of 2010 who were under age 61 pay less than $1,000 a year according to a new report issued by the American Association for Long-Term Care Insurance (AALTCI).

"The single greatest misconception held by consumers is the actual cost of coverage," explains Jesse Slome, AALTCI's executive director. "Most people perceive the cost is actually quite a bit higher than the real amounts paid by large percentages of those purchasing coverage."

The Association reveals that nearly one-in-five (19.4%) purchasers under age 61 pay between $20 and $30 a week for new policies. Over one-fourth of buyers (28.9%) in this age band pay between $1,500 and $2,500 a year with the remainder paying more. Less than one-tenth of these buyers (6.8%) pay $4,000 or over.

"Studies that report average premium costs regrettably mislead the public into the perception that long-term care insurance is expensive," Slome explains. "Averages include large numbers of older buyers and other factors that result in higher costs. The fact is that many people pay far less than the average amounts released by industry sources."

Costs for long-term care insurance can vary significantly based on the age when one applies, the ability to take advantage of discounts offered to healthier applicants as well as the amount of future benefits desired.

Insurance rates are based on the attained age of the applicant. Older buyers pay more and according to the latest data of real buyers, less than a tenth (9.0%) of buyers between ages 61 and 75 paid $1,000 or less when they applied for new coverage.

According to the Association, the average age for new individual purchasers is now 57. Eight out of 10 (80.5%) of new individual buyers in 2009 were younger than age 65 when applying for long-term care insurance according to AALTCI's annual research of 155,000 new applicants. The pricing data is based on an analysis of over 200,000 purchasers of partnership qualified LTCi policies.

What Real People Pay Yearly

Buyers Under Age 61

Less than $999 27.8%
$1,000 - $1,500 19.4%
$1,500 - $2,500 28.9%
$2,500 - $4,000 17.1%
$4,000 and over 6.8%

Buyers Age 61 - 75

Less than $999 9.0%
$1,000 - $1,500 12.5%
$1,500 - $2,500 34.5%
$2,500 - $4,000 28.4%
$4,000 and over 15.6%

Source: American Association for Long-Term Care Insurance, November 2010, Price Study

2011 Long Term care Insurance Tax Deduction Limits Announced

2010-11-02T13:25:00.000-07:00

November 2, 2010. The Internal Revenue Service (IRS) announced increased deductibility levels for long-term care insurance policies purchased in 2011.

"For taxable years beginning in 2011, the limitations have been increased," explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI), the industry's trade association.

“Tax advantaged long-term care insurance remains one of the few remaining significant tax-savings benefits especially meaningful for small business owners."

The deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:

Attained Age Before Close of Taxable Year

2011 Deductible Limits
40 or less $ 340
More than 40 but not more than 50 $ 640
More than 50 but not more than 60 $1,270
More than 60 but not more than 70 $3,390

Source: IRS Revenue Procedure 2010-40

The American Association for Long-Term Care Insurance (http://www.aaltci.org/) is the national association serving insurance and financial professionals who provide long-term care financing solutions. A complete explanation of tax deductible rules for individuals and business owners can be found on the Association's website: http://www.aaltci.org/tax .

LTC Association Marks Long-Term Care Awareness Month

2010-10-26T09:24:00.000-07:00

November is Long-Term Care Awareness Month, an industrywide event established in 2001 by the American Association for Long-Term Care Insurance (AALTCI).

"Each year awareness efforts tied to Awareness Month grow," explains Jesse Slome, executive director of the industry's trade group. "From a Congressional Resolution, to proclamations issued by governors and mayors across America, support for the campaign's goal continues to grow."

Slome urges insurance professionals to capitalize on the occasion by using November as an opportunity to discuss long-term care planning with clients. "It's as simple as asking people if they have a long-term care plan in place," Slome notes. The vast majority of individuals and families over age 50 have no plan in place he adds. "As the saying goes, a failure to plan is a plan for failure and while insurance isn't a solution for all, everyone needs to weigh their options."

The Association makes available free marketing tools that insurance professionals can use to promote awareness during Long-Term Care Awareness Month. They can be accessed via the organizations website: http://www.aaltci.org/aware.

Long-Term Care Insurance Sales Summit Set For Vegas

2010-08-17T14:07:00.001-07:00

The 9th National Long-Term Care Producers Summit will take place April 3-5, 2011 at the Tropicana Hotel in Las Vegas, NV.

Organized by the American Association for Long-Term Care Insurance, the conference program focuses on four specific areas; selling long-term care insurance during difficult economic times; selling combo or annuity and life products with linked LTC benefits; selling multilife LTC and the CLASS Act.

For the first time, the nation's leading trainers - Phillip Sullivan of SellingLTC.com and Phyllis Shelton, president of LTC Consultants will be part of the Summit program.

The majority of Summit attendees are relatively new agents and brokers who want to learn from the leading trainers and successful producers. This is the largest industry conference specifically for top long-term care insurance sales and marketing professionals.

Members of the American Association for Long-Term Care Insurance can take advantage of significant savings when they register early.

The complete program and registration details for the program can be found on the Association's website. Click here for the Summit's homepage. Or for more information call AALTCI at (818) 597-3227.

Congressman Launches Effort To Stop The CLASS Act

2010-07-27T10:26:00.000-07:00

A letter from Congressman Charles W. Boustany, Jr. (R-LA) seeks cosponsors for proposed legislation (H.R. 5853) that reverse legislation creating a new federal long-term care program (CLASS). According to Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI), CLASS will likely not be implemented until 2013. "If the plan is going to be changed now would be the time before employers have to evaluate the pros and cons and dollars are withheld from employee paychecks," Slome notes.

The Congressman's letter released reads as follows: Most Americans remain unaware of the CLASS program, a new government-run long-term care insurance program that was slipped into the health-care law.

Speaker Pelosi and her allies behaved recklessly when they used the CLASS program as a $70 billion budget gimmick to fund other portions of the new health-care law. Congress has a duty to stop the implementation of this new unfunded entitlement before a single premium dollar is collected from hard-working Americans.

Instead of setting money from CLASS premiums aside solely for promised benefits, Democrats used it to pay for other parts of the new health law and merely put an IOU in a government trust fund. Americans could be required to repay these IOUs in the form of higher taxes.

Actuaries and budget experts widely agree CLASS is fatally flawed. Senate Budget Committee Chairman Kent Conrad publicly called the program “a Ponzi scheme of the first order, the kind of thing Bernie Madoff would be proud of."

The Congressional Budget Office, the American Academy of Actuaries and CMS’s own actuary warn the program will disproportionately attract enrollees with the highest costs. Premiums will skyrocket and discourage young and healthy workers from enrolling. The program will enter what Medicare Chief Actuary Rick Foster called “an insurance death spiral.”

The Chief Actuary predicted that CLASS will begin to run deficits in 2025 and continue to run deficits thereafter. He also estimated that an initial average premium of about $240 per month would be required to adequately fund CLASS program costs. CBO said CLASS “…would add to budget deficits in the third decade – and in succeeding decades—by amounts on the order of tens of billions of dollars for each 10-year period.”

I urge you to cosponsor the Fiscal Responsibility and Retirement Security Act (H.R. 5853). This bill would stop the Obama Administration from implementing a final CLASS plan without a vote of approval by two-thirds of the House and Senate.

Caregiver of Year Award: Entry Deadline July 26

2010-07-22T09:52:00.000-07:00

Do you know a caregiver who makes a difference and deserves recognition? Nominate them for Caregiver of the Year award sponsored by Homewatch CareGivers.

I'm proud to be one of the judges for this most worthwhile effort. There are local recipients and the final national winner receives $5,000.

For more information click on the link below and hurry the deadline is July 26.

http://www.homewatchcaregivers.com/national-family-caregiver-award.aspx

Jesse Slome
American Association for Long-Term Care Insurance

Republicans Conclude CLASS Act Should Be Repealed

2010-05-25T07:23:00.000-07:00

The Joint Economic Committee comprised of Republican Senators issued a report last week referring to the CLASS Act as “a Ponzi scheme of the first order” a quote attributed to Senator Kent Conrad (D-ND).

CLASS, which stands for Community Living Assistance Services and Supports, was included within the health care reform legislation recently signed into law. The new voluntary federal payroll deduction long-term care program will provide a cash benefit to disabled or memory-impaired adults who need help with activities of daily living.

While Congress passed the law including the CLASS provisions, certain key program details including price and benefits have been left to the Secretary of Health and Human Services. In addition, the program start date that many believe won't happen until 2013 has been left to the Secretary's discretion.

The Committee report’s conclusion: “As currently designed, CLASS will not be able to sustain itself without subsidies from taxpayers or from all workers in the form of mandatory enrollment. ”

The report continues, “In addition to being unsound, the program is unnecessary. Americans already have an array of private long-term care insurance options to choose from; many are more economical than CLASS, most offer richer benefits.”

The report ends stating that “The best remedy for the unsustainable, unaffordable CLASS program is to repeal it.”

“This is the first time we've heard the word ‘repeal’ when referring to the CLASS Act,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance (http://www.aaltci.org). “I actually wish the federal government would finalize the pricing and benefits for the CLASS plan as soon as possible because employers and consumers are confused by the lack of details."

The CLASS program is designed to be offered primarily through employers. Workers will then be auto-enrolled with the right to opt out. The Congressional Budget Office (CBO) estimates that only 3.5 percent of the adult population, or 10 million people, will enroll by 2019.

"Individuals and especially employers need to know as soon as possible how much CLASS will cost and whether it will provide only a $50-per-day benefit or one that is higher," Slome adds. "It shouldn't take that long to figure this all out."

NOTE: IF you would like a PDF of the Joint Economic Committee report, send me an E-mail. Request: "Joint Report CLASS" and I will be glad to send to you. Write to: jslome @ aaltci.org .

CLASS Act Information Worth Reading

2010-03-31T08:20:00.000-07:00

We have just posted a current and comprehensive explanation of the CLASS Act with questions and answers online and it is well worth reading. The link is below.

President Obama has signed into law comprehensive healthcare reform legislation that contains a program known as the Community Living Assistance Services and Supporters Act (CLASS Act).

If you are an insurance agent, you will be getting more questions from current clients and certainly from prospects.

If you have questions that are not answered, feel free to send me an e-mail and we will look forward to addressing them.

Click on this link: or type, copy and paste this web address into your browser. http://www.aaltci.org/class/

My Thoughts On CLASS - Next Steps

2010-03-23T09:08:00.000-07:00

If you market and sell long-term care insurance, sooner (or later) you are going to hear the following words from a prospect; "I'm going to wait and check out the new federal long-term care plan."

It was inevitable that media coverage of health care reform would shift from "will the bill pass" to "what does the new law mean for you?" That shift is already taking place and the media watch each other and compete.

As a result, it is very likely that we will see continued and growing coverage of the fact that the health care law contains a new "federal government long-term care insurance plan". And, in a world of 15-second sound bites, that's about as much attention as it will be given ... and also all consumers need to hear to once again put any thoughts of planning on the back burner (the way baxck burner).

I will be writing more about CLASS and shortly will be creatintg material for members of the American Association for Long-Term Care Insurance to use to 1) educate themselves and 2) educate their clients and prospects. Undoubtedly, insurers will be doing likewise and we'll watch for such items and gladly share.

First, it is too early to predict how the CLASS Act will really impact either the individual or the employer-sponsored long-term care insurance markets. The three most important elements are undefined by Congress; (premium) cost to participants, benefit levels and requirements imposed on employers. These may not be available until well into 2011 or 2012 and then it will take time for implementation.

On the positive side, the CLASS Act should create enormous awareness among individuals of the real risk they face and the need to plan. If the plan is priced properly to take into consideration that it is guaranteed issue, then individual (traditional) policies will be able to compete based strictly on more benefits for less cost.

If, however, policies are insufficiently priced (too low to ultimately cover the potential claims risk) it will be more difficult to create differentiation between CLASS LTC insurance and private LTC insurance. Certainly those in positions of responsibility within the industry will work hard to achieve this (but it will not be an easy task).

Because there is a five year plan participation requirement, whatever benefits CLASS ultimately offers will really only have value for those who are currently age 55 or younger. As a result, a significant segment of Americans (those currently between 55 and 65) will fall through the donut hole and fail to have long-term care protection.

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

A Webinar On The CLASS Act

2010-03-03T17:20:00.000-08:00

Many followers of my blog, also are members of the American Association for Long-Term Care Insurance and have attended our Producer Summits. If you have, you know that Claude Thau and Dawn Helwig are two of the brightest minds in this industry. They are both dear friends and of enormous help to what we do. Allen too!

So I am pleased to share information about a webinar these folks are doing that will deal with the CLASS Act. Here is more information.

The CLASS Act has been included in every major health care reform proposal in recent months, including President Obama's proposal to the Health Care Summit. If you would like to learn more about this long-term care insurance (LTCi) industry-changing proposal, please join Claude Thau of Thau, Inc. and Allen Schmitz and Dawn Helwig of Milliman, Inc. for a WebEx presentation on Thursday, March 11th, at 2:00 Central time.

It will cover the basics of the proposals, as well as several analyses of the program. In addition, we will discuss the ramifications of this bill for the private long-term care industry. Will it create a market for supplemental coverage? Will it increase private LTCi sales or result in further sales decline? Who will the program appeal to and what kind of anti-selection will result?"

They are charging a fee of $25 to participate.

To register for the Webinar, email your name and email address to cthau@targetins.com.

Claude will send you a "CLASS Act" invoice from PayPal that will allow you to use PayPal or a credit card to pay the $25 fee. After your $25 fee payment is received, Claude will send you the link for the web presentation and the long-distance phone number for the audio portion.

Claude's phone number and contact information can be found immediately below if you have any questions.

Claude Thau
Phone direct: 913-403-5824
Phone main: 913-384-6300, x2241
WATS line: 800-999-3026, x2241
E-mail: mailto:cthau@targetins.com

2010 Long-Term Care Sales Achievement Awards Announced

2010-01-12T19:16:00.000-08:00

"Rookie of Year" Category Added To Recognize Industry's Newer Producers

Insurance and financial professionals who market long-term care insurance protection are invited to enter the Eighth Long-Term Care Sales Achievement Awards. The annual program, conducted by the American Association for Long-Term Care Insurance, recognizes producers based on sales made during 2009.

"Awards are given for sales of individual long-term care insurance policies as well as multi-life long-term care," explains Jesse Slome, the organization's executive director. A new category has been added to recognize producers who began selling long-term care insurance in 2009.

Award recipients are ranked on a national as well as a state-by-state basis with their names published in the Association's annual LTCi Sourcebook. "This is an excellent way for agents and brokers, even those who have just started selling, to show prospects they have been recognized as a leading producer in the industry," Slome notes. The minimal placed premium for 2009 is $2,500. "All those who enter and qualify are recognized," he adds.

Information and the entry application can be accessed online via the Association's website: http://www.aaltci.org/awards. Established in 1998, the American Association for Long-Term Care Insurance is the national association serving insurance and financial professionals who provide long-term care financing solutions.

Audio Recordings From Long-Term Care Insurance Producers Summit

2010-01-05T13:21:00.000-08:00

Audio recordings from the recent LTCi Producers Summit are now available. The link to see the listing of all 36 sessions can be found below. Audios start at $15 each. Audios with synchronized Power Point presentations are $22 each. A discount code for AALTCI members will save you 20%.

To support the Association's efforts, the recording company provided us with a few DVDs containing all the sessions including synchronized Power Points. You can view these presentations on your computer while listening to the presentations (each is between 60 and 90 minutes long).

We are making A DVD-ROM WITH ALL 36 SUMMIT PROGRAMS available for $229 (while supplies last). Mail requests with checks only (details below). If you order online, the cost is $339. For use on computers.

To see all available 2009 LTCi Summit audios and order: click on this link: http://www.fleetwoodonsite.com/aaltci

AALTCI members can save 20% on their orders: Enter the Code "QRR7UU" during checkout on the payment page.

To order the complete DVD of all 36 sessions for $229 (Save $110 versus online cost of $339) send a check payable to AALTCI.
Mail to AALTCI - DVD, 3835 E. Thousand Oaks Blvd., Ste 336, Westlake Village, CA 91362

Here are the top-rated Summit sessions based on Evaluation Forms submitted by Summit attendees.

LTC 828 Public Policy Impacting LTC - The Latest From Washington DC - The CLASS ACT (Attendees' Evaluation Score 5.0)

LTC 834 The Instincts Of Success - Frank Maselli, Keynote speaker (Score 5.0)

LTC 836 $100,000 Of Marketing For FREE - How To Be The "Go To" LTC Expert In 2010 - Jesse Slome, AALTCI (Score 5.0)

LTC 830 How To Sell Partnership Long-Term Care Insurance - Panel (Score 4.78)

LTC 817 Yes You Can ! . Create A No-Cost Internet Presence For Google - Jesse Slome, AALTCI (Score 4.70)

LTC 831 Keynote: Referrals The Professional Way - by Frank Maselli (Score 4.70)

LTC 807 The Impending Collapse Of The Roadblocks To LTC Insurance - Steve Moses - Center For LTC Reform (Score 4.29)

To see all available 2009 LTCi Summit audios and order: click on this link: http://www.fleetwoodonsite.com/aaltci

Wishing you a great start to 2010.

Jesse Slome
American Association for Long-Term Care Insurance

Calorie Intake Linked To Longevity And Cancer Development

2009-12-19T06:52:00.000-08:00

Cutting consumption of glucose, the most common dietary sugar, can extend the life of healthy human cells and speed the death of precancerous cells, reducing cancer's spread and growth rate.

According to findings reported by researchers from the University of Alabama at Birmingham, reducing calorie-intake can benefit longevity and help prevent diseases like cancer that have been linked to aging.

The researchers conducted tests by growing both healthy human-lung cells and precancerous human-lung cells in laboratory flasks. The flasks were provided either normal levels of glucose or significantly reduced amounts of the sugar compound, and the cells then were allowed to grow for a period of weeks. Restricted glucose levels led the healthy cells to grow longer than is typical and caused the precancerous cells to die off in large numbers.

Every year some 1.4 million Americans are diagnosed with cancer. It ranks as one of the leading factors for the need for costly long-term care according to the American Association for Long-Term Care Insurance among aging seniors.

Two key genes were affected in the cellular response to decreased glucose consumption. The first gene, telomerase, encodes an important enzyme that allows cells to divide indefinitely. The second gene, p16, encodes a well known anti-cancer protein.

Healthy cells saw their telomerase rise and p16 decrease, which would explain the boost in healthy cell growth, the researchers explained. The research into the links between calorie intake, aging and the onset of diseases related to aging is thought to be a first of its kind given that it used the unique approach of testing human cells versus laboratory animals.

The study has been published in the online edition of The Journal of the Federation of American Societies for Experimental Biology. The research was funded by a grant from the National Institutes of Health.

People Who Look Young For Their Age Tend To Live Longer

2009-12-14T21:06:00.000-08:00

People who look young for their age enjoy a longer life than those who look older than their years.

According to researchers, doctors frequently use perceived age as a general indication of a patient's health. They note however, that there is little research upon which to base validity of the belief.

Researchers at the University of Southern Denmark, examined whether perceived age is linked with survival. They investigated important age related traits, such as physical and mental (cognitive) functioning and a molecular biomarker of aging (leukocyte telomere length).

Telomere length indicates the ability of the body's cells to reproduce. Shorter length is associated with a host of diseases related to aging, lifestyle factors and death.

A total of 1,826 Danish twins aged 70 years and over underwent physical and cognitive tests in the spring of 2001. Their faces were also photographed. Assessors rated the perceived age of the twins from their facial photographs. The assessors did not know the age range of the twins. In addition, each twin of a pair had their age assessed on different days.

Following the assessments, death records were used to track the survival of the twins over a seven year period. Perceived age was significantly associated with longer life survival. This was true even after adjusting for chronological age, sex, and the environment in which each pair of twins grew up. Perceived age, adjusted for chronological age and sex, also correlated with physical and cognitive functioning as well as leukocyte telomere length.

Also, the bigger the difference in perceived age within a twin pair, the more likely it was that the older looking twin died first. The age, sex and professional background of the assessors had no relevance to any of the results.

The researchers concluded that perceived age based on facial photographs is a strong biomarker of ageing. It predicts survival among people aged 70 years and over and correlates with important functional and molecular age related characteristics.

Report gathered by the American Association for Long-Term Care Insurance.

How To Respond To The Passage Of CLASS

2009-12-07T07:22:00.000-08:00

It appears that any final efforts to remove the CLASS Act from the Senate Health legislation have failed and thus it looks almost assured that we are witnessing the birth of a long-term care insurance plan that will be offered by the federal government.

Inevitably, the new plan will be included within newspaper and magazine stories that help American consumers understand what it all means to them. That will likely generate questions from people who already purchased long-term care insurance. It will inevitably bring up questions from those who are looking into it. It will certainly impact employers who will be the ones offering the federal plan to employees.

The American Association for Long-Term Care Insurance will develop succinct and factual talking points for consumers. The federal plan will provide benefits to many who would otherwise never be able to secure long-term care insurance protection.

It will likely also confuse many and will give people a false sense of security or a reason to put off planning for long-term care. That would be an enormous mistake.

We will be soliciting input from thought leaders and from the various insurers. Undoubtedly they will want to be prepared to handle calls from inquiring customers.

If you have suggestions or wish to share statements you have seen, that would be most welcome.

Send them on to: Jesse Slome, E-mail: mailto:jslome@aaltci.org

Study Examines Long Term Home Health Care Utilization

2009-12-01T07:46:00.000-08:00

December 1, 2009 - Some 7.5 million Americans currently receive long-term care at home because of an acute illness, long-term health condition, a permanent disability, or terminal illness according to a new report.

That compares to only 1.5 million in nursing homes and 1.1 million who reside in assisted-living communities according to the American Association for Long-Term Care Insurance which teamed up with Homewatch CareGivers to conduct a study examining trends in long-term health care and the utilization of associated support services.

"Most people incorrectly associate long-term health care with skilled nursing care in a facility when the vast majority of care takes place at home," explains Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance. “It is clear that the people in today’s society prefer treatment for chronic conditions and issues related to aging in their own home rather than in a residential facility.”

One aspect of the study sought to compare individuals with long-term care insurance policies with those without insurance coverage. The findings indicated that individuals with long-term care insurance receive significantly more home care, and thus can stay in their homes longer. The study found that 70.6% of those covered by long-term care insurance received an average of between five and seven days of care each week, while only 35.1% of those without insurance received similar care as often.

"When possible, home is almost always the preferred setting for people who require care," says Leann Reynolds, president of Homewatch CareGivers. “This has been a clear and growing trend for more than a decade, as more and better home services have become available. The vast majority of people want to receive support care in their homes in order to maintain independence and quality of life for as long as possible.”

Possessing insurance to pay part or all of the cost of home care services enabled individuals to receive care at home for longer periods of time. The study found that 41.2% of those with insurance received care for longer than one year; compared to 29.7% of those without coverage.

"The study confirms what we've long suspected, that a basic long-term care insurance plan costing less than $1,000 a year may provide sufficient coverage for those who want care at home and still have the ability to transition to more costly skilled facilities should the need arise," adds Slome.

According to the Urban Institute, a nonprofit founded in 1968 that conducts research on social and economic issues to foster sound public policy, 21.3 percent of the frail older population receives paid home care services and it projects this will increase to 22.3 percent by 2030 and 25.5% by 2040.

"It is vitally important for individuals to recognize the increased likelihood of needing care at some point in their lives, and to plan for that inevitability," concludes Reynolds. “Having sufficient financial resources or the protection of long-term care insurance are the prime factors for all of us who want to stay in our homes and receive care for as long as possible.”

- - -

Founded in 1980, Homewatch CareGivers http://www.homewatchcaregivers.com/ is the largest, most experienced international provider of full-service home care for people of all ages, including seniors, children, veterans, the chronically ill, and those recovering from medical procedures. In-home care services are personalized for each client and customized care plans are administered through an international network of 111 owners with 181 territories. Founded in 1998, the American Association for Long-Term Care Insurance http://www.aaltci.org is the national trade organization established to educate Americans about the importance of long-term care planning. For more information visit the organization's Consumer Information Center or to access a free guide to reducing the cost of long-term care insurance click on this link: www.aaltci.org/free-guide/ .

New Guides Address Increased Tax Deductions For Long-Term Care Insurance

2009-11-25T05:35:00.000-08:00

Two new guides explain 2010 tax deductibility rules and limits for individuals and business owners purchasing long-term care insurance.

The "Guide To Tax Deductible Long-Term Care Insurance" was published by the American Association for Long-Term Care Insurance, the industry trade group.

"Tax deductions and credits are going to be increasingly important and a most significant selling point insurance and financial professionals can use to encourage long-term care planning," states Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance. To encourage individuals and small business owners to purchase long-term care insurance the federal government and many states have started offering tax deductions and tax incentives.

The 2010 version of the guide explains tax rules for individuals as well as those who are self-employed or own small businesses. The applicable rules vary including limits for allowable tax deductions.

Tax-deductible limits for individuals can be as much as $4,110 per-individual starting in 2010 based on age. "Small business owners can take advantage of special tax rules that may make the full cost of long-term care insurance tax deductible," Slome adds. "The business can even pay for spouses and designate coverage for selected employees on a tax-advantaged basis."

A second booklet, "Accountant's Guide To Long-Term Care Insurance" provides comprehensive information including Internal Revenue Codes pertaining to various tax deductibility rules and the new 2010 aged-based limits for long-term care insurance tax deductions.

Copies of the 2010 editions of both brochures can be ordered by calling the Association at (818) 597-3227 or by visiting the organization's website: http://www.aaltci.org/tools.

Long-Term Care Awareness Month Television Appearance

2009-11-23T15:31:00.001-08:00

Ron Goldner, Financial Planner with Wealth Strategies Group, Inc. in Memphis, Tennessee capitalized on Long-Term Care Awareness Month by arranging three local television appearances. You can view his appearance on the local Fox-station's newscast.

At the end of the interview, Ron offers copies of the Association's Guide For Women and has already fielded a number of calls. Offering a brochure is a great way to get the station to include your phone number. Way to go Ron.

If you send me examples of media placements you have secured, we'll gladly share them with others.

Posted by Jesse Slome
American Association for Long-Term Care Insurance
http://www.aaltci.org

Free Articles For Your Long-Term Care Blog

2009-11-11T10:05:00.000-08:00

If you are reading this blog, chances are you have your own blog. or, at least, you have had more than one fleeting thought about starting one.

For those who have a blog, here is some news I believe will be of value.

For those who do not have a blog - I strongly urge you to start one. It will be a meaningful way to market yourself and your business. More on that at another time (and if you are a member, read the issue of Sales Strategies).

On a monthly basis, I will write and make available an informational blog posting that you can (and should) add to your own blog. Free content of a valuable nature. You will simply copy, personalize and post on your blog. Keep reading.

I just posted the first one. It's available as part of the American Association for Long-Term Care Insurance's Online Learning & Marketing Center. Click here and sign-in. Then go into the Publicity section. It's the most recent post.

First, the simplest way to copy and use the text is to highlight the text and copy it into a new Word document. The Download feature isn't great and I hope to change that in the coming year. So copy and paste.

Second, if you include a live link to the American Association for Long-Term Care Insurance's website as part of your posts, I will reciprocate with a link to your website. Links are important in Google's eyes - so we can help each other. The link must go to: http://www.aaltci.org/. After you post, send me an E-mail with the link to your blog and what website you want us to include in our links. E-mail me at: jslome @ aaltci.org.

Third (and this is important). Be sure that you personalize your blog. If you have a separate blog from your website, be sure to include a link to your website. Again, this is good for your Google ranking.

I dedicate an hour a day to what's called Social Marketing via the net. I can tell you that the world is going online (not just young people) and Association members will get the tools to make that a bit simpler.

LTC Association Membership Counts For MDRT

2009-11-11T09:20:00.000-08:00

To be a member of MDRT (Million Dollar Round Table) one has to belong to at least one qualifying organization.

We are very pleased to advise you that Membership in the American Association for Long-Term Care Insurance qualifies.

And, because AALTCI membership currently costs $49 for a year a number of members have found it possible to join MDRT. If you belong to MDRT, you can certainly indicate you are an AALTCI member to meet their qualification.

If you know or work with other agents or brokers who qualify for MDRT membership but have put off joining because of the expense of belonging to other industry organizations, you have a solution to remove that objection. Of course, there are many other benefits available to members of the nation's only industry trade organization focused exclusively on long-term care insurance.

Please feel free to forward this information to others.

Membership in the American Association for Long-Term Care Insurance is $49 for 1-year. (Please note that dues will increase to $99 in January 2010.)

Here is the link to see all benefits of AALTCI membership:
http://www.aaltci.org/ltc-marketing/membership/benefits.php

Here is the link to our online membership application:
https://www.aaltci.org/ltc-marketing/membership/

Health Care Bill Contains Long-Term Care Insurance Option

2009-11-10T05:27:00.000-08:00

The passage of H.R. 3962, the Affordable Health Care for America Act, contains provisions to establish a national voluntary long-term care insurance program.

Section 2581 of the nearly 2,000-page bill provides for the establishment of the Community Living Assistance Services and Supports (CLASS) program the purpose of which is to "establish a national voluntary insurance program for purchasing community living assistance services."

The measure aims to provide individuals with functional limitations with tools that will allow them to maintain their personal and financial independence and live in the community. The plan intends to offer insurance to those who are actively employed or those who are members of the uniformed services and is on active duty.

According to data compiled by the American Association for Long-Term Care Insurance, the cost of the government insurance program is expected to be close to $1,500-per-year for an individual; close to $3,000 for a couple with both spouses participating. The organization notes that individuals who are able to health qualify for private insurance will likely still be able to purchase significantly better protection for less money from private insurers. For those unable to health qualify for long-term care insurance, the CLASS plan will be a viable, though expensive option experts note.

The proposed government long-term care insurance plan is designed to commence some time before 2012, though many details including the final cost and benefits will still need to be worked out. Individuals who choose to pay the government-imposed insurance premiums will need to participate by paying insurance premiums for a minimum of five years -- or until 2017 -- in order to first be eligible for benefits.

The Congressional language requires that individuals "shall be automatically enrolled in the CLASS program by an employer" though an opt-out provision will be permitted for those who choose not to have the long-term care insurance premiums deducted from their pay check.

Once the Senate passes its health care reform bill, the House and Senate bills will have to be reconciled into one document and voted on again.

Increased Tax Deduction Limits For Long-Term Care Insurance

2009-10-19T14:52:00.000-07:00

The Internal Revenue Service (IRS) has announced increased deductibility levels for long-term care insurance policies purchased in 2010. "For the first time, the maximum deductible limit for an individual exceeds $4,000," explains Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance , the national trade organization.

"The federal government and an increasing number of states are sending a clear signal that individuals need to plan for long-term care and tax deductibility and tax credits certainly make long-term care insurance more attractive to millions," Slome adds. "It is a positive sign to see limits for long-term care insurance deductibility increase especially when pension contribution limits for 2010 were not increased."

The end of the year provides a double tax-saving incentive for consumers. There is still time to take advantage of tax deductions in 2009 and also benefit from the increased deductible limits next year.

The 2010 deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:
Age 40 or less: $ 330
More than 40 but not more than 50: $ 620
More than 50 but not more than 60: $1,230
More than 60 but not more than 70: $3,290
More than 70: $4,110

A complete explanation of tax deductible rules for individuals and business owners can be found on the Association's website: Click here for 2010 tax deductible limits.

Long Term Care Insurance Coverage Question Regarding Penn Treaty Liquidation

2009-10-09T07:24:00.000-07:00

I am still learning much about the Internet. I recently created a LinkedIn group for long-term care insurance producers and others. There have already been some interesting discussions between the members and I'd encourage you to consider joining.

I'm not 100% sure how to join groups ... but I know you can do so by first getting linked to me (which I'm happy to do). Go to:
http://www.linkedin.com/in/jesseslome
If there's a better way ... let me know.

Once on my LinkedIn page, you want to click on the the group Long-Term Care Insurance Producers. (Look on the lefthand side at the top). You do NOT want the one USA - AALTCI (someone smartly created that group ... not me ... and thus I can not monitor or make sure it serves what I believe is the intent).

Anyway ... there are currently about 101 participants ... and some good stuff.
Jesse Slome
American Association for Long-Term Care Insurance

Below is one of the questions and responses that I believe will be of interest.

Question from Kathleen Smith

After the latest news on Penn Treaty, I revisited the AALTCI 2009 Sourcebook article on State Guaranty Associations. I know that LTCi is protected up to $100,000. But, what does that mean to policy holders not on claim? If they have a 5 year/$250,000 policy benefit does their premium remain the same with it being paid to the State? If so, is their premium adjusted to reflect a $100,000 policy benefit rather than a $250,000 benefit pool compounding annually? ...

The response which I obtained from Sean McKenna at the National Association which comprises all the State Guaranty Associations.

The new NAIC Guaranty Association Model Act recommends $300,000 for LTC coverage. A number of states either have passed the new model limit or have it under consideration now. In answer to your second question, no, the premiums do not decline.
Sean McKenna
Director of Communications
NOLHGA

Penn Treaty May Need More Than $1 Billion for Claims

2009-10-08T21:11:00.000-07:00

Many long-term care insurance agents have clients who they placed with Penn Treaty and others have asked to be kept aprised. I thought the following would be of interest and value.
Jesse Slome
American Association for Long-Term Care Insurance

Summarized from a Bloomberg Report: Penn Treaty Network American Insurance Co., facing the biggest insurer failure in at least five years, may need more than $1 billion in additional funds to pay claims, a state regulator said.

Penn Treaty “is far more insolvent than originally believed,” Pennsylvania Insurance Commissioner Joel Ario’s office said in an Oct. 2 request for liquidation. Penn Treaty American Corp., the Allentown, Pennsylvania-based parent of the insurer, included the document in a regulatory filing yesterday.

Sellers of long-term care coverage, including Penn Treaty, suffered after underestimating expenses, while the broader life insurance industry has reported losses on declines in stocks and bonds. Penn Treaty, with about 120,000 customers, was hurt by investment losses in the recession and “seriously under- reserved” for claims in previous years, the regulator said.

“It’s potentially a big deficit mostly that will come from guarantee funds,”a spokeswoman for Ario’s office, said in an interview. Policyholders pay Penn Treaty about $249 million in annual premium for coverage, and the regulator ruled out using rate increases to bridge the potential $1.3 billion gap between assets and future claims. That deficit will be left to state guaranty funds, which are funded by solvent insurers.

Penn Treaty is among at least eight carriers in the U.S. facing forced rehabilitation or liquidation by regulators this year, according to data collected by the National Organization of Life & Health Insurance Guaranty Associations. That compares with four in 2008.

Ario, who seized Penn Treaty in January, didn’t find an insurer to purchase or assume any of its policies. According to Nolhga, Penn Treaty has about $1 billion in assets. Cash from premiums will be sufficient to pay claims for several years, Placey of the Pennsylvania regulator said.

“There’s enough money to pay claims going forward and get the guaranty associations ready for the transition,” Placey said. Guaranty funds are used to pay claims when regulated insurers are unable to meet obligations. Penn Treaty policies will remain active for customers who continue to pay premiums. A state court will weigh Ario’s request to liquidate the company, his office said in statement last week.

Pennsylvania Insurance Department Petitions to Place Penn Treaty Into Liquidation

2009-10-02T12:19:00.000-07:00

October 2, 2009. The Pennsylvania Insurance Department today filed petitions that seek orders of liquidation for Penn Treaty Network America Insurance Company and its subsidiary, American Network Insurance Company. The petitions are subject to the approval of Commonwealth Court.

"We have been on-site analyzing the organizations' assets, liabilities, reserves and surpluses since we began our rehabilitation action in January," Insurance Commissioner Joel Ario said. "Our comprehensive, independent evaluation has determined that the companies do not have the ability to pay future claims without significant rate increases that would have to be requested and approved in all 50 states. In the current circumstances, those rate increases simply would not be fair to policyholders.

"We have instead petitioned for an orderly liquidation of all company assets in which policyholders' claim payments are our number one priority. Additionally, active long-term care policies will not be canceled, except by the policyholder, so they will be transitioned to the states' guaranty funds once an order takes effect. Guaranty funds have the right to assess other insurance companies to cover policyholder claims up to coverage limits that vary by state."
Penn Treaty Network America, headquartered in Allentown, and its subsidiary, American Network, provide long-term care insurance to more than 120,000 policyholders.

Together, the companies offered long-term care insurance in all 50 states and the District of Columbia. Policyholders and other interested parties will receive further information about the liquidation when the court enters an order. In the interim, policyholders with questions on claims or non-claim matters may call, toll-free, 1-800-362-0700, ext. 3270.

Posted by Jesse Slome
American Association for Long-Term Care Insurance

Americans Fail Long Term Care Insurance Planning Quiz

2009-09-29T17:29:00.000-07:00

When it comes to knowledge about long-term care insurance planning, Americans once again received a failing grade.

Long-term care poses the single largest risk to Americans living on retirement savings and income according to the American Association for Long-Term Care Insurance, the industry trade group. Yet, few consumers have the facts correct when it comes to understanding available planning options.

As the U.S. population ages, the percentage of people older than 65 will increase from about 13% in 2009 to 20% in 2040. Part of the projected increase is due to an increased life expectancy beyond age 65. After retirement health insurance and Medicare provide very little long-term care benefit, if any, according to financial planning professionals.

The results of a just-released national study of individuals between 40 and 70, most reported knowing what long-term care is and how much it costs. But their scores fall short when it comes to knowing what percentage of people will need long-term care and how they will pay for it. According to the study conducted by the MetLife Mature Market Institute, just about four in ten adults (36%) know that 60-to-70 percent of 65-year-olds will require long-term care services at some point in their lives. Just over one-third knew that most long-term care services are received at home.

While the number of respondents answering correctly (37%) increased since the 2004 survey (18%), awareness is low overall.Few participants in the survey reported that they are taking action to protect themselves from such potentially catastrophic expenses; only 18% know long-term care insurance rates are based on age, but almost nine in ten (87%) are aware that a comprehensive long-term care policy covers home, assisted living and nursing home care.

The survey also reported that eight in ten respondents (85%) understand that long-term care could have many causes, such as Alzheimer's disease, an accident or a chronic or disabling condition. More than four in ten (43%) are able to correctly identify the national average monthly cost for assisted living.

For more information on long-term care insurance, visit the Association's Consumer Information Center where you can read the organization's free guide on reducing the cost of long-term care insurance. Click here to read the guide.

Long Term Care Insurance Marketing Tools Available

2009-09-24T17:47:00.000-07:00

November is national Long-Term Care Awareness Month, an outstanding opportunity for insurance and financial professionals to communicate with clients and prospects about this important protection.

The American Association for Long-Term Care Insurance, the industry's professional trade organization, has created a variety of marketing tools for use by agents and brokers. The tools consist of a direct mail letter to be sent to prospects as well as an E-card that can be personalized and E-mailed by the agent. The E-card is private so that only the recipient is notified and can directly reply back to the sending agent. These tools are available free of charge for use by all agents via the Association's website. Click here to access the free marketing tools:

In addition, a number of special tools have been created for use by Association members. These include a press release that can be personalized with the agent's information and distributed to local media. A letter for mailing to secure radio interviews is also available within the Association's Online Learning, Marketing & Sales Center.

Membership in the American Association for Long-Term Care Insurance remains $49 through December 31, 2009 after which it will increase to $99. For more information, click here to visit the Association's website.

Long Term Care Insurance Trade Organization Applauds Baucus Proposal

2009-09-16T16:12:00.000-07:00

The American Association for Long-Term Care Insurance, the industry's national professional organization, commended Senate Finance Committee Chairman Max Baucus (D-Montana) for including a proposal to allow cafeteria plans to offer qualified long-term care insurance as part of his health care reform package.

The proposal was part of the Senator's "America’s Healthy Future Act," health care reform legislation which the Senator notes is intended to lower costs and provide quality, affordable health care coverage.

The health care reform proposal will make it easier for families and small businesses to buy health care coverage including long-term care insurance, ensure Americans can choose to keep the health care coverage they have if they like it and slow the growth of health care costs over time. The Finance Committee will meet to begin voting on the Chairman’s Mark next week.

The proposal recommends creation of a Simple Cafeteria Plan – a vehicle through which small businesses can provide tax-free benefits to their employees. This change would ease the participation restrictions and include self-employed individuals as qualified employees. The proposal also exempts employers who make contributions for employees under a simple cafeteria plan from pension plan nondiscrimination requirements applicable to highly compensated and key employees.

Finally, the proposal allows for qualified long-term care insurance to be provided under a cafeteria plan to the extent the amount of such contributions does not exceed the eligible long-term care premiums for the contract. This proposal is effective beginning on January 1, 2011.

The full text of the America’s Healthy Future Act is available at http://finance.senate.gov/sitepages/leg/LEG 2009/091609 Americas_Healthy_Future_Act.pdf

What Do Consumers Pay For Long-Term Care Insurance

2009-08-31T20:28:00.000-07:00

The Partnership program provides enormous benefit for consumers. It also provides significant benefit to insurance professionals.

One of the most important benefits is the gathering of relevant information. The following is preliminary information gathered from the Partnership States. While the numbers may change, it sheds an important light on the subject of what people pay for long-term care insurance protection. It clearly shows that the majority of consumers are spending far less for long-term care insurance protection than what's reported in the consumer media.

The following data is based on over 70,000 individuals (under age 61) purchasing Partnership long-term care insurance policies between January 1, 2009 and June 30, 2009.

Premium Amount Percentage
Less than $500 18.1%
$500 - $999 33.2%
$1,000 - $1,499 11.1%
$1,500 - $1,999 10.2%
$2,000 - $2,499 7.6%
$2,500 - $2,999 6.0%
$3,000 - $3,499 4.7%
$3,500 - $3,999 3.3%
$4,000 and Over 5.3%

Why are these numbers so important?

Because, here is the number a highly respected organization reports to the media: "The average individual buyer in the first three months of 2009 is paying $2,129 during the first year of coverage." (June 8, 2009)

If consumers perceive $2,129 is the cost (that's $4,258 for a couple) they are going to believe that long-term care insurance is EXPENSIVE. And, they are not going to buy.

BUT 72.6% PAID LESS THAN $2,000. And more than half paid LESS THAN $1,000.

It is very hard to overcome perceptions. Let's hope facts will help. Certainly the American Association for Long-Term Care Insurance and our members are doing all they can to properly educate consumers and other professionals.

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

More Low-Cost Long-Term Care Insurance Sold

2009-08-29T12:02:00.000-07:00

More than half of Americans purchasing long-term care insurance paid less than $20 a week according to a new report by the American Association for Long-Term Care Insurance, the industry trade group.

According to an analysis of over 100,000 policies sold during the first half of 2009, the majority of individuals age 61 and younger paid under $1,000 a year for protection (less than $20 a week). Just over half (51.3%) of long-term care insurance policies sold to individuals in Partnership states cost under $1,000 a year. Nearly one in five cost less than $500 a year.

"Most people mistakenly believe long-term care insurance is expensive," states Jesse Slome, executive director of the organization. "The cost depends on how much coverage you buy, your age and health when you apply." Less than 10 percent of purchasers spent more than $100 a month for new policies purchased.The majority of those purchasing Partnership long-term care insurance policies were between ages 46 and 60.

The Partnership is a program authorized by Congress that makes available long-term care insurance protection from leading insurers. Partnership-approved policies provide special features and asset spend-down protections. Some 30 states now have long-term care Partnership programs in place.

Nearly half (48.2%) of buyers purchasing Partnership long-term care insurance policies in the first half of 2009 were between the ages of 46 and 60. Some 31 percent were over age 60 and nearly 20 percent were age 45 or younger.

Cut Risk Of Long-Term Care Need With Early MRI

2009-08-26T08:08:00.000-07:00

A new study finds that MRI scans could be used to diagnose Alzheimer's disease in the early stages, which could lead to improved treatment. Every 72 seconds, someone in the United States develops Alzheimer's disease according to the American Association for Long-Term Care Insurance, the industry trade group.

Researchers from the Cleveland Clinic report that the brains of people in the very early stages of Alzheimer's disease might become hyperactive to compensate for disease-related deterioration. The scientists tested mentally healthy adults, two-thirds of whom were at risk for Alzheimer's because of family history or genetic markers.

MRI scans monitored the participants' brains as they were asked to recognize famous celebrities and unfamiliar people. The brain activity of at-risk people was then compared with that of those not at risk for Alzheimer's.

The researchers reported an increased level of activation of certain parts of the brain in at-risk individuals. They note this may reflect a compensatory brain response by these participants to the earliest stages of Alzheimer's disease. An estimated 5.1 million Americans have Alzheimer's which is one of the most costly causes of long-term care by older individuals.

Researchers noted that functional MRI scans might eventually be used to delay the onset of Alzheimer's disease by five years. They added that by delaying the onset by 10 years, Alzheimer's disease will virtually be eliminated because people will have passed away for some other reason. The findings are published in the current issue of Neurology.

Long Term Care Insurance Women Planning Matters

2009-08-20T07:28:00.000-07:00

Long term care insurance planning for women is vitally important. Women have the greatest need for long-term care. Women receive 65 percent of all benefit payments from individual long-term care insurance. Women who are married can benefit from significant spousal discounts. Women living alone pay the exact same for long-term care insurance protection as men (even though they are far more likely to gain a benefit from their coverage).

Consumers seeking free information or no-obligation quotes for this protection should visit the Consumer Information Center of the American Association for Long-Term Care Insurance.

This consumer education video has been produced by the American Association for Long-Term Care Insurance, the industry's professional trade organization.

Long Term Care Insurance News You Never Hear

2009-08-15T06:31:00.000-07:00

Increasingly, we get calls from reporters who are doing more in-depth stories about long term care planning and the role of long-term care insurance.

First, it is a great feeling to help them get the portray a correct story since their words, whether written or oral can influence so many prospects and potential buyers. Friday, a national editor who I have worked with before called the American Association for Long-Term Care Insurance's offices. At this point, I won't reveal the story being working on but in the ensuing research I did - two pieces of information emerged. They are examples of when long-term care insurers go beyond what is required. You may not be familiar with them.

The first involves Genworth's new policy being offered to AARP members. The policy offers a 60-day return policy. In simple terms, the consumer can return the policy within 60 days for a refund of monies paid. As most insurance agents know, the standard "free look" required by law is 30 days. Now, it bears stating that the State of Washington just passed a law mandating the 60-day provision. Who knows whether other states will follow.

And, in speaking with a long-time Genworth producer, it was noted that in an effort to provide outstanding customer service the company has not held rigid to the 30-day cut off. But clearly there was someone who thought this was a customer-friendly provision ... and agreed to make it available.

The second story involves John Hancock. In recognition of the weak economy, the company allows (or allowed, I am not sure if the practice continues) policyholders who lose their jobs and fail to pay premiums for a certain period of time, to reinstate their policies without the typically-required health underwriting. What a recognition of going the extra mile to help the people who showed the good faith and sense to buy your product.

Having worked with the media for most of my life, every reporter will tell you it is not their job to "shill" for a company. So don't ever expect to read about these items in the news.

But, in the current environment we are in -- and with the news media focusing so much attention on negatives surrounding the insurance industry, it's good to know there are insurers doing well because they do good. That's a message the American Association for Long-Term Care Insurance is proud to help convey.

If readers have others to share, feel free to send them to me. I'll gladly pass them along. Mail to: jslome @ aaltci.org

How To Reduce Long Term Care Insurance Premiums

2009-08-10T10:19:00.000-07:00

How much you'll pay for long-term care insurance is based on three factors. Your age when you apply, how much protection you want and your health when you apply. Where you live today and where you plan to retire also play a part.

But here is information that's most important for Los Angeles, CA residents. Your long-term care insurance can be far more reasonable than you think.

Let me share a few ways people I advise significantly reduce the cost of long-term care insurance. Before I share, I thought the following statistic from the American Association for Long-Term Care Insurance (http://www.aaltci.org) that was especially interesting. In 2008, individuals between the ages of 55 and 59 paid as little as $844-a-year for LTC insurance protection. The maximum paid by someone in this age range was $6,939.

So, how can one reduce the cost? Start by considering a policy that might protect a specific amount of your savings and assets. The coverage you buy today can increase in value over time. So, a policy that provides $115,000 of protection today can grow to $305,000 in 20 years. If you are married, some long-term care insurance policies allow one spouse to access the other spouse's benefit pool. That's an option well worth looking into.

Consider adding a deductible to your long-term care insurance policy. Most people have a deductible on their car insurance and their homeowner's policy. When it comes to long-term care insurance, adding a deductible will significantly reduce the cost and the majority of people select a 90-to-100 day period. You'll save as much as 20 percent yearly.

Finally, know that costs vary significantly from one long-term care insurance company to another. Members of the industry's long-term care insurance association and they share enormous information. Once a year AALTCI undertakes a Price Index Study and the costs for almost identical coverage can vary by as much as 100 percent depending on your age and marital status.

If you’d like to learn more on long term care insurance please take a moment to call the Association at 818-597-3227 or E-mail us at mailto:info@aaltci.org. We will get you in touch with an area professional who can provide free information without any obligation. Thanks for reading our blog today we really appreciate it.

Nursing Home Studies Reveal Benefit of Long Term Care Insurance

2009-08-07T07:03:00.000-07:00

While less than a third of benefits from U.S. long-term care insurance companies pays for nursing home care, most Americans still associate policies with a costly nursing home stay according to the American Association for Long-Term Care Insurance. Two studies now look at the benefits of this increasingly popular protection.

A report published in the organization's annual Sourcebook revealed that nine percent of nursing home residents would have delayed going to a nursing home for necessary care in the absence of a nursing home policy. Some 13 percent reported they would have used a less costly provider in the absence of having long-term care insurance.

A new report issued this week has found that non-profit nursing homes provide better care than for-profit facilities. According to Canadian researchers, a review of 82 studies conducted starting in 1965 reported that 40 studies found that non-profit nursing homes provided significantly better quality care, while three studies concluded that for-profit homes delivered better care. The remaining studies had mixed results. Most of the studies were conducted in Canada and the United States.

Non-profit homes did better in four important quality measures: more or higher quality staffing; lower rates of pressure ulcers; less use of physical restraints; and fewer deficiencies cited by regulatory agencies. Based on their findings, the researchers calculated that if all nursing homes were non-profit, nursing home residents in the United States would receive 500,000 more hours of nursing care per day, while those in Canada would receive 42,000 more hours of nursing care per day.

The findings of the second study which were published online in the British Medical Journal suggest a trend toward higher quality care in non-profit nursing homes than in for-profit homes, said the researchers.

Last year American long-term care insurance companies paid some $8.5 billion in benefits to some 180,000 individuals. Some of the largest claims, typically for care in skilled nursing home facilities, exceed $1 million according to the industry organization. Long-term care insurance provides individuals with the ability to choose where care is provided, notes one industry expert. Choice and control are great benefits.

Posted On E-Max health by Jesse Slome from the American Association for Long Term Care Insurance

Long-Term Care Insurance Association Commends U.S. Congressman

2009-08-06T08:46:00.000-07:00

Los Angeles, CA - August 6, 2009 - The American Association for Long Term Care Insurance commended U.S. Representative Rodney Alexander (R - LA) today for his leadership and efforts to encourage Americans to take personal responsibility for long-term care planning.

"The Congressman's comments recommending tax deductions for individuals purchasing long-term care insurance creates an enormous incentive for people to consider this protection," states Jesse Slome, Executive Director of the national professional organization. "When more Americans plan, the nation avoids an unsustainable liability that will fall on all taxpayers."

According to Association data, some 8.25 million individuals currently own long-term care insurance. "The Congressman's proposal could rapidly double the number of people protected," Slome notes. Social Security and Medicare have promised $42.9 trillion more in benefits to senior and disabled workers than the programs will be able to pay, according to a new report by the Heritage Foundation.

"The Congressman understands that Americans must plan for their own future and that a tax incentive is a small price to incent action," Slome adds.“Increased life expectancy, coupled with the rapidly aging baby boomer generation forces more Americans to face the challenges of caring for either themselves or their loved ones," Congressman Alexander remarked. “To ease the burden and encourage taxpayers to take steps towards securing long-term care, I have introduced the Sunset of Life Protection Act of 2009 (H.R. 1891). This legislation seeks to provide individuals a 50 percent non-refundable tax deduction on the cost of long-term care insurance costs."

“My intention is to minimize the need for individuals to rely on public resources in their later years by taking measures now to ensure a comfortable and complete long-term care coverage package," he added. "As Congress looks for ways to improve the affordability and availability of quality health care for all Americans, this is an option to lessen the costs of tomorrow by investing in insurance today.”

The American Association for Long-Term Care Insurance is the national organization serving insurance and financial professionals who market LTC solutions. The organization was founded in 1998 and is headquartered in Los Angeles.

Leaders From 18 Long Term Care Partnership States To Attend LTC Agent Summit

2009-07-30T10:22:00.000-07:00

Executives from 18 states offering long term care Partnership plans will attend the National LTCi Producers Summit. The Summit takes place November 14-16, 2009 at the Westin Hotel in Kansas City and brings together hundreds of producers who market long-term care insurance products.

This year's Summit will combine two conferences - the producer sales and marketing conference organized by the American Association for Long-Term Care Insurance and the conference for state officials organized by the Center For Healthcare Strategies (CHCS).

Over 18 states will be represented each sending three or four executives from the State Medicaid office, the Department of Insurance, the Agency on Aging and State Dept. of Commerce. Summit attendees will have the opportunity to attend special Partnership workshops in addition to the extensive Summit program.

States Sending Executives Include
Arkansas
Colorado
Georgia
Idaho
Illinois
Maryland
Michigan
Minnesota
Missouri
New Jersey
Ohio
Oklahoma
Oregon
Pennsylvania
Wisconsin
South Dakota
Texas
Virginia

Summit registration is $275 ($324 for non-Association members) through September 30th.

Registration includes sessions, meals and receptions. Hotel discounts are currently available.
Complete information and registration forms are available online at http://www.aaltci.org/2009summit or by calling the American Association for Long-Term Care Insurance at (818) 597-3227.

Study Reveals Federal Long-Term Care Insurance Plan Flaws

2009-07-22T13:25:00.000-07:00

The proposed federal health plan being discussed by the U.S. Senate includes proposed long-term care protection. The Community Living Assistance Services and Supports Act (CLASS Act) would provide coverage paid by individuals who would have the ability to opt out.The goal of the American Association for Long-Term Care Insurance, the industry's professional organization, is to serve as an advocate for sound long-term care planning that ensures the future of all Americans -- those who can afford private long-term care insurance, and those who can not.

That said, the proposed CLASS Act (Senator Kennedy's new tax on Americans) is not the solution and a report released today by the American Academy of Actuaries reveals the plan's significant flaws. The plan's proponents believe a $65-per-month tax for individuals would be sufficient to provide a $50 average monthly benefit. 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 established to pay long-term care claims will be insolvent by 2027. Sometime well before that date, taxpayers can expect the voluntary plan to become a new mandatory tax.

The report notes that part of the problem with the proposed plan is the increased likelihood of adverse selection. Simply stated, those individuals in poorer health will sign-up for the plan and those who are in better health will likely opt-out. Once claim payments begin after the five-year waiting period, one can expect an increasingly steady flow that will stretch the fund beyond what proponents expect.

The American Association for Long-Term Care Insurance is the independent trade organization providing information on long-term care planning to consumers and providing marketing and sales support to information. The organization maintains the industry's most comprehensive website on long-term care planning which can be found at http://www.aaltci.org/

If you would like to receive a PDF copy of the American Academy of Actuaries letter to the U.S. Senate Committee on Health, Education, Labor and Pensions, please click here to send an E-mail to Jesse Slome, Executive Director.

Five Questions to Ask Before Hiring a Home Care Provider

2009-07-20T15:44:00.000-07:00

When it comes to needing long-term care, the majority of Americans today receive care in their own home. "People mistakenly associate long-term care with nursing home care," explains Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance.

"Today most long-term care takes place outside of a skilled care facility and the vast majority of long-term care insurance claims are not nursing home related."According to studies conducted by the industry trade group, some 42 percent of long-term care insurance benefits paid are for care at home (AALTCI's 2009 Long-Term Care Insurance Sourcebook). "Another 28 percent was for care in assisted living communities and only 30 percent was for care in skilled nursing facilities," Slome notes."

Home care services cover a wide range of needs, from memory care and companionship to meal preparation and medication reminders," says Jennifer Tucker, Vice President with Homewatch CareGivers, a national provider of homecare services. "They may also include help with the activities of daily living, including home care services like bathing, dressing, and grooming or care coordination services rendered by a registered nurse."

When selecting a home care agency, it is important to know what questions to ask. Here are five important questions that consumers should ask of a prospective service provider:

How long has the agency been providing private duty home care?

Is a written, customized care plan developed in consultation with the client and family members, and is the plan updated as changes occur?

How are emergencies handled after normal business hours?

Do they closely supervise the quality of care, including maintenance of a daily journal in the client’s home and non-scheduled supervisory visits?

Does the agency employ a nurse, social worker, or other qualified professional to make regular visits to the client’s home?

"A great way to find quality home care providers is to speak to a knowledgeable long-term care insurance professional," states Jesse Slome. "If they've been in the business for a few years, they likely have clients who are receiving care."

For additional information on home care for long-term care needs or to find local long-term care insurance professionals, visit the online Consumer Information Center from the American Association for Long-Term Care Insurance and request information from any of the organization's 3,500 members nationwide.

Colorado Governor Praised For New Long-Term Care Awareness Campaign

2009-07-08T16:14:00.000-07:00

The American Association for Long-Term Care Insurance commended Colorado Governor Bill Ritter, Jr. who announced a new campaign encouraging Coloradans to start planning now for their future long-term care needs. The State of Colorado has partnered with the U.S. Department of Health and Human Services to help Coloradans with the long-term care planning process through the Own Your Future campaign.

"We praise this visionary leader for promoting the importance of long-term care planning," stated Jesse Slome, the Association's Executive Director. "Over 100,000 Colorado residents already own long-term car insurance, " Slome notes, "and the new outreach effort will help educate many more people about this important issue." Nationwide, some 8.25 million Americans own long-term care insurance.

"Coloradans are living longer healthier lives due to advancements in science, medicine and health education," said Governor Bill Ritter. "There is nothing more important than taking care of your health, and as your Governor, there is nothing more important to me than ensuring strong, healthy futures for all Coloradans. Over the past two years, we've taken a number of steps to ensure health care is more affordable and accessible for all residents of our state and emphasizing the importance of long-term care planning is a critical part of that effort."

The Own Your Future campaign is led by The Colorado Partnership for Long-Term Care. The Partnership is a public/private arrangement between long-term care insurers, Colorado's Medicaid program, the Division of Insurance, the Department of Human Services and the citizens of Colorado. It enables Colorado residents who purchase Long-Term Care Partnership insurance to have more of their assets protected if they later need the state Medicaid program to help pay for their long-term care. Through the Partnership, Coloradans have greater control over how they finance their long-term care.

As part of the program Coloradans between the ages of ages 45 to 65 will receive a letter from Governor Bill Ritter, Jr. about the Own Your Future campaign. The letters will include information about how to order a free planning kit as a first step to managing future long-term care needs. The planning kits are a great tool to help Coloradans make smart, safe decisions about long-term care.

Coloradans seeking more information on long-term care insurance can visit the online Consumer Information Center from the American Association for Long-Term Care Insurance

2009 Long-Term Care Insurance Price Index Announced

2009-07-07T13:04:00.000-07:00

A 55-year-old individual considering long-term care insurance protection can expect to pay $723-per-year for a base level of protection if they are married or $1,060 if they are single according to the 2009 Long-Term Care Insurance Price Index published by the American Association for Long-Term Care Insurance.

Across various age groups, costs for coverage increased about two percent from the prior year. The index published annually measures costs for top-selling long-term care insurance policies that offer consumers approximately $115,000 in current benefits, with protection increasing yearly as the individual ages.

"A solid base plan of protection will grow in value to over $305,000 of protection 20 years from now," explains Jesse Slome, Executive Director of the national trade organization that conducted the research. The study compares costs for different levels of plans that provide long-term care benefits for 3-years or longer with a compound inflation option that increases the available insurance benefits by five percent compounded each year.

"For some age bands the cost of long-term care insurance actually declined," Slome notes. "What we did see is a far wider range of prices between insurers offering basically the same coverage." According to the Association study, costs can vary by as much as 100 percent. "This could reflect different benefits or simply the individual insurer's pricing assumptions," Slome explains. "Consumers should compare policies or work with a knowledgeable insurance professional who can analyze for them."

Lower Interest Rates Impact Costs For Insurance Policies

The cost for long-term care insurance is closely related to interest rates that have significantly declined in recent years. "Investment income comprises between 40 and 60 percent of the dollars used to pay eventual long-term care claims," Slome explains. "Premiums paid by policyholders make up the other portion and as interest rates have declined, insurers have found it necessary to raise premiums for protection." The industry paid out $5.8 billion in claims in 2008 to some 180,000 policyholders.

"The cost of long-term care insurance is directly related to how much protection you purchase, the age you first apply and your health at the time of application," explains Slome. "Over half of all individual applicants are between ages 55 and 64, and one third purchase a daily benefit of between $100 and $149." The daily benefit amount actually equals either a cash benefit or a pool of money that the policyholder can access. Most insurers offer significant discounts when both spouses apply for coverage.

The survey compared costs for individuals age 55 with those age 65. "A married individual purchasing $172,000 in current protection will pay about $20 a week ($1,084-per-year) by qualifying for available good health discounts," Slome explains. "By waiting until they are age 65, they'll likely pay $63-a-week because they will need to buy more coverage to keep pace with inflation and will likely no longer qualify for the good health savings."

Federal Long-Term Care Insurance Plan Is Short-Term Thinking

2009-06-29T08:15:00.000-07:00

The new long-term care insurance proposal that Democrats have included in a Senate health overhaul bill would produce about $58 billion in revenue for the government over the next 10 years, according to the Congressional Budget Office (CBO).

The $58 billion could be used to offset the cost of the national healthcare program. "Legislators must be salivating at a potential source of income with absolutely no potential for expenses for years to come," explains Jesse Slome, executive director, of the American Association for Long-Term Care Insurance, the industry professional trade organization.

Monthly premiums paid by individuals would account for the $58 billion. Premiums would vary by age but are expected to average about $65 per month ($780 a year). Under the proposed program, no one would be eligible for benefits until they have paid premiums for five years - a reason the CBO estimates the program would net revenue for the government for its first 10 years." The CBO generally does not estimate the cost of programs beyond 10 years, the period covered by procedural "pay-as-you-go" rules requiring legislation to be budget-neutral.

"When has a government entitlement program accurately estimated income and projected expenses," Slome queries. "The CBO already estimates that premiums will be insufficient and will likely need to be increased to maintain the program's solvency. The government already runs a disability insurance program through the Social Security Administration, but it is very difficult to qualify for that program and there is a backlog of people who have appealed Social Security's initial decline of their benefits."

According to the Association some 8.25 million Americans have already purchased long-term care insurance on an individual basis or through their employer. "Some 400,000 new policies are now sold each year," as more people understand the need to plan for the risk of needing care. Millions of others will be able to use the built-up value of their homes through a reverse mortgage.

"Another underfunded entitlement program where the real cost won't be known for 10 or more years simply shifts the financial obligation to the next generation," Slome says. "That's long-term care planning of the worst kind."

A Proven Way To Get Long Term Care Insurance Leads

2009-06-26T13:46:00.000-07:00

I was delighted to arrive at work this morning to a fax from Randall Russo a member of the American Association for Long-Term Care Insurance.

Randall faxed me three newspaper articles -- two of which resulted from his use of the free press releases available to Association members. Both included his name, his phone number and his E-mail address. That is incredible exposure. And, it was free.But here's the bottom line: Randall got a number of calls. Wrote two applications and started a relationship with a elder law attorney as a result of one of the articles.

One of the most significant benefits of membership in the Association is the free publicity material provided members. You are wasting an incredible opportunity if you don't take advantage of them.

To help you gain some exposure and potentially some leads a new press release has been added to the Producer's Resource Center. Below, I will explain how to access that page (in case you have forgotten).

The press release offers a free copy of the new guide just published by the Association. This consumer guide targets women and a copy is bound into issues of Sales Strategies magazine. Copies of the magazine are on their way to each member. Allow several weeks for delivery.But, you can see the brochure online.Click on this link: http://www.aaltci.org/subpages/resources/marketing_women.html

FIRST A FREE OFFER:
If you post a news item online and it includes a live link to the Association's home page (http://www.aaltci.org) , we will mail you five copies of the new woman's guide for FREE. That will get you started filling initial calls.You can post it as part of your blog. You can submit an online news story to your local newspaper.We posted two versions of the press release. #15 has no link. #16 has a live link embedded.But I have posted instructions below for the web coding to create the live link to www.aaltci.org.

Just send a copy of the webpage, blog or news article with the live link to my attention.

NOW HERE'S HOW TO ACCESS THE NEW PRESS RELEASE:
Go to: http://www.aaltci.org/for_producers/
Click on the "Members Only" tab.
Click on the "Publicity Tools" tab.If you cannot recall your Password - follow the instructions.

NOW HERE IS THE CODE TO USE WITH ONLINE ARTICLES (for your free brochures):

Use the wording below as the first paragraph of your story. Replace the current wording with this wording. It will create a live link to a new webpage. It will not take them away from your webpage or article.Women are significantly more likely to need long-term care and yet few are prepared, according to a new consumer guide published by the American Association for Long-Term Care Insurance
Congratulations to Randall. Get your name published. There are countless media in your area that will offer copies of a free guide for women. And, they have to include your name and contact information as part of the story.

That's a win for you.My best to all for a most productive summer.
Jesse Slome
Executive Director
American Association for Long-Term Care Insurance
http://www.aaltci.org/

New Consumer Guide Addresses Women's Long-Term Care Planning Issues

2009-06-23T11:18:00.001-07:00

A new consumer guide to long-term care insurance protection has just been published by the American Association for Long-Term Care Insurance. The eight-page booklet specifically addresses the issues and options facing women.

"Women have a far greater risk of needing long-term care and indeed two-thirds of all long-term care insurance benefits paid in 2008 result from care needs by women," explains Jesse Slome, executive director of the national trade organization. "Women also tend to be the ones who initiate the long-term care planning discussion and often are the decision makers when it comes to purchasing long-term care insurance."

Several facts outlined in the "Woman's Guide To Long-Term Care Insurance Protection" authored by Jesse Slome: Women over the age of 65 comprise 980,000 nursing home residents in the U.S. Only 337,000 men over age 65 are in nursing homes. Women are far more likely to suffer from Alzheimer's Disease which is the cause of the largest and most costly needs for long-term care.

The guide addresses important planning considerations for women who have spouses or partners as well as women who live alone. "Each have very specific planning needs and issues," Slome explains. "Married women face a likelihood of providing care for their spouse, who typically is older, or facing a very significant annual bill for care." Women who live alone lack the spouse or extended family members to assist with caregiving.

Copies of the guide can be viewed on the American Association for Long-Term Care Insurance's website and may be purchased by insurance and financial professionals. To view a copy go to: http:www.aaltci.org/tools or call the organization at 818-597-3227.

Long-Term Care Insurance Association Study Looks At Buyers of Life Insurance Plus LTC Benefits

2009-06-22T09:20:00.000-07:00

Los Angeles, CA - June 23, 2009 -- Nearly half of individuals purchasing asset-based long-term care protection in 2008 were under age 65 according to the first national study of buyers. Two thirds (66%) of purchasers were women and the average single premium paid was just under $71,000 ($70,975). Research conducted by the American Association for Long-Term Care Insurance (AALTCI), the national trade organization, examined 2008 sales data for over 5,000 new policies.

"Asset-based long-term care insurance protection is becoming an increasingly popular way for individuals to protect against the risk," explains Jesse Slome, AALTCI's Executive Director. Asset-based long-term care policies offer the dual benefit of access to long-term care benefits as well as life insurance protection. "Many individuals find this coverage attractive because if they don't use their long-term care protection, their beneficiaries still benefit from the life insurance coverage," Slome explains.

The average single premium paid for an asset-based LTC policy in 2008 was $70,975, according to the Association study. This represented a four percent increase compared to 2007 when the average premium was $68,300. Just under half of policies (49.7%) had a base face amount of between $100,000 and $200,000. Some 30 percent had a face amount of life insurance protection of between $50,000 and $100,000. "Policies offer a long-term care insurance protection in multiples of the life insurance benefit," Slome explains.

Purchasers of asset-based LTC policies were almost equally divided between pre-65 (49%) and 65-or-older (51%). Just over 10 percent (11.2%) of purchasers were between ages 45 and 54. Exactly two-thirds of purchasers were women (66%). "Buyers are older than individuals purchasing traditional long-term care insurance protection," Slome notes. According to the Association's study, some 84 percent of buyers of traditional LTCi protection in 2008 were younger than age-65.

Asset-based long-term care protection and traditional LTC insurance policies share the requirement that applicants health qualify for coverage. The percentage of accepted applicants declined with age according to the study's findings. Some 70.2 percent of submitted policy applications by individuals between 45 and 54 were accepted. The percentage declined to 60.5 percent for applicants between ages 65 and 74.

"We anticipate the market for asset-based long-term care protection will increase in the years ahead," predicts Slome. "Leading insurers such as Genworth Financial and Lincoln Financial Distributors are focused on the growth of this market and policy sales."

The American Association for Long-Term Care Insurance is the national organization serving insurance and financial professionals who provide long-term care financing solutions. Consumers can obtain information from the organization's Consumer Information Center, the nation's leading resource for LTC insurance information. Insurance agents and financial professionals can visit the organization’s online Producer's Resource Center at www.aaltci.org.

Will The "Kennedy Legacy" Kill The Long-Term Care Insurance Industry

2009-06-11T15:52:00.000-07:00

Will the (Ted) Kennedy Legacy - a healthcare plan that includes provisions for a government-offered long-term care insurance provision - kill the private long-term care insurance industry?

The stort answer is, yes it indeed could. After all, what a sweet proposal - pay $65 a month ($780 a year) for five years ($3,900) and you've got long-term care coverage. And, you don't even need to health qualify. Everyone qualifies.

If you don't think there's already interest, just do a Google search for "Kennedy long term care". As a long-time and highly successful public relations guys, I know how I would spin this story to the media and thus to consumers. "We can do this because of mass numbers, and because we are cutting out those pesky middlemen - the long-term care insurers and the commissions paid to agents which can be as much as ..." (I won't go on ... why make life easy for them ... though they have bright minds working on this).

Best of all, this is the perfect time to make something like this happen. Insurers are happy to be surviving (who isn't these days) ... and agents aren't organized. The Washington D.C.-based insurance lobbying groups have to contend with health insurance and you really don't want to offend Ted Kennedy or others when the stakes (health insurance) are so huge.

Is the Kennedy "plan" attackable. Of course it is. And, at so many levels ... and that's before even talking to the real bright minds. From what I understand, no actuaries have even been called in to assess the real price.

But, perhaps most important, the time to seize the opportunity to respond is short. Those advocating an alternative plan are organized. They have egos and if they see this is generating good press ... they'll make every effort to secure more.

I hesitated a while before writing this blog. The American Association for Long-Term Care Insurance does not lobby and personally I have no intentions to walk the halls of the Capital.

But I am truly concerned. And, I believe others with a vested interest in both protecting Americans and not saddling taxpayers with another entitlement that isn't properly priced and will ultimately balloon beyond any reasonable expectation should be concerned as well.

I have already seen a dozen online reports about the Kennedy bill (I'm sure it's also appeared in print editions). They all focus on the $65-a-month figure. As the publicity grows (and it will), why would any sane consumer buy something that costs more? They'll wait until they see what the government ends up doing.

Publicity builds momentum. Trust me, I introduced the Cabbage Patch Kids dolls ... and it wan't my brilliant work or that of the publicists who worked with me ... we just keep feeding a little fuel to the momentum. Before you know it, we had a national phenomenon and the cover of Time magazine.

What's my answer? I'm not really sure. I am reaching out to those I consider leaders in the industry. My personal commitment to members of the American Association for Long-Term Care Insurance is to do the best I can to serve the members, the industry. But on a personal note, my goal isn't to be self-serving. I want to do what's right for our country's future ... and the lives of my five children who will be paying the bill for Senator Kennedy's legacy.

Lots of what happens in Washington never gets traction and so it's been easy to ignore. This one shouldn't be categorized as such.

I'll keep you posted and be interested in feedback and your thoughts. Send to my E-mail (click here).

Jesse Slome

New Study Examines Long-Term Care Insurance Claims

2009-06-08T09:37:00.000-07:00

The largest open long-term care insurance claim has surpassed $1.2 million in paid benefits, according to a just-released report from the American Association for Long-Term Care Insurance. The claimant, a woman, purchased coverage at age 43, paying an annual premium of $1,800. Three years later her claim began and has continued for almost 12 years. [Note: Payment of policy premiums ceases when an individual is receiving policy benefits.]

"As a result of increased longevity and medical advances, the need for long-term care is a new phenomenon for a generation of Americans," said Jesse Slome, Executive Director of the industry trade group. "The pervasive concern about purchasing long-term care insurance is will I ever use it?"

According to Association data 180,000 Americans received benefits from their long-term care insurance policy and some $8.5 billion in claims was paid in 2008. "This is a significant increase in benefits paid compared to the prior year," Slome explains. "Long-term care insurance is not the lottery. This is not something you really want to win; but having protection in place can certainly pay off and for thousands of people it increasingly is."

The organization collected data on claims including the largest open claims (still being paid as of December 31, 2008) paid by six of the nation's leading insurers. The second largest claim is by a woman who purchased her long-term care insurance policy at age 72, paying an annual premium of $12,766. Three years later her claim began and has continued for almost nine years ($1.02 million in benefits has already been paid for her nursing home care).

The largest claim being paid to a man exceeds $690,000. The individual purchased long-term care insurance protection through his employer at age 54, paying an annual premium of $2,560. The coverage was designed to pay benefits for five years. Two years later his claim began and has continued for almost seven years.

Nearly one in 10 (8.9%) of new individual claims initiated during 2008 prior to age 70 the study revealed. "While most long-term care insurance claims begin at older ages, typically in ones late 70s or 80s, accidents and illnesses are a common reason younger people need this care," Slome notes. The Association's study revealed that 30.5% of claims start between ages 70 and 79; some 60.6% after age 80. "Almost two-thirds of claimants receiving benefits (65%) are women," Slome reports, "and the largest percentage of benefit payments (42.0%) are for care in ones own home versus a nursing home (30.5%)."

The five most common reasons for a long-term care insurance claim, according to the Association, are Alzheimer's Disease, stroke, arthritis, circulatory issues or injury. "One in eight persons age 65 and over has Alzheimer's," Slome says. "The number of new cases is expected to increase to 450,000 a year by 2010 and to 615,000 new cases a year by 2030. It’s time for individuals to start planning for care should they need it in the future." The study shows that planning can certainly pay off.

The six largest claims will be published in the upcoming summer issue of LTCi Sales Strategies magazine which is sent to all Association members.

Readers of this blog: Let me know if you'd like to see more information on long-term care insurance claims.

Women And Long-Term Care Insurance

2009-04-06T16:24:00.000-07:00

Some quick facts about women and long-term care.

All statistics show that women live longer than men. Women who reach age 65 have a life expectency of (another) 20 years versus 17 years for men.

Women over age 75 are far less likely to be married (than men) and are twice as likely to be living alone.

Women over age 65 include 980,000 nursing home residents; versus 337,000 men.

Women are also typically the caregivers. Women provide between 60% and 75% of family or informal care.

These facts come from the Association's 2009 Long-Term Care Insurance Sourcebook and they will be an important part of the upcoming guide the Association will publish specifically for women.

But, facts support the issue and I am hoping readers of this blog will share their insights with me as I prepare the booklet. What have you found resonates with women - both those who are living alone ... as well as those who are married? My intent is to address both of these audiences with messages they will relate to.

What should be included in this brochure?

Please share your thoughts by sending me an E-mail to Jesse Slome.

Thanks. I can't think of a more important topic.

Jesse Slome
mailto:jslome@aaltci.org

IRS Rules Assisted Living Meals And Lodging Costs May Be Tax Deductible

2009-03-10T19:18:00.000-07:00

A private letter from the Internal Revenue Service explains that meals and lodging costs for assisted living may be deducted as medical expenses if the individual is in the facility for qualifying medical reasons. The letter explains the types of conditions that would meet the standards in order to qualify these costs as tax deductible.

For insurance agents and brokers, this is good information to save and share with accountants and tax professionals who may be working with family members with a parent (or parents) residing in an assisted living community.

Here is a copy of the IRS letter dated December 18, 2008

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224

Number: INFO 2009-0010
Release Date: 1/2/2008
UIL: 213.00-00
CONEX-149526-08

The Honorable Edward Markey
Member, U.S. House of Representatives
5 High Street, Suite 101
Medford, MA 02155
------------------------------
Dear Congressman Markey:

This letter responds to your inquiry dated December 10, 2008, on behalf of your
constituent (name withheld) who asked about the deductibility of expenses paid
to care for her mother, who is in an assisted care program because she suffers from
Alzheimer’s disease.

As a general rule, taxpayers may not deduct personal, family, or living expenses
(section 262(a) of the Internal Revenue Code (the Code)). However, an exception
allows taxpayers to deduct expenses that they pay for medical care of the taxpayer, the
taxpayer’s spouse, or the taxpayer’s dependent, subject to certain limitations, if the
expenses are not covered by insurance (section 213(a) of the Code). For purposes of
this deduction, medical care expenses include amounts paid for the treatment or
mitigation of a mental illness and amounts paid for qualified long-term care services
(section 213(d)(1) of the Code).

Qualified long-term care services are certain services that a chronically ill individual
requires, and that a licensed health care practitioner prescribes under a plan of care
(section 7702B(c)(1) of the Code). An individual is chronically ill if the individual meets
one of two “triggers.” The first trigger is the inability to perform at least two daily living
activities without substantial assistance from another individual for at least 90 days.
Daily living activities include eating, toileting, transferring, bathing, dressing, and
continence (section 7702B(c)(2)(B) of the Code). The second trigger is a severe
cognitive impairment that requires substantial supervision to protect the individual from
threats to health and safety (section 7702B(c)(2)(A) of the Code).

What level of assistance with daily living activities is required to meet the first of the two triggers—the inability to perform at least two daily living activities without substantial assistance from another individual. In Notice 97-31, 1997-1 C.B. 417, we define “substantial assistance” as either “hands-on assistance” or “standby assistance.”

Hands-on assistance means the physical assistance of another person without which
the individual could not perform the activity. Standby assistance means the presence of
another person within arm’s reach of the individual that is necessary to prevent, by
physical intervention, injury to the individual while the individual is performing the activity
(such as being ready to catch the individual if the individual falls while getting into or out
of the bathtub or shower as part of bathing, or being ready to remove food from the
individual’s throat if the individual chokes while eating).

Notice 97-31 also provides guidance about the second trigger—a severe cognitive
impairment that requires substantial supervision to protect the individual from threats to
health and safety. The notice defines a “severe cognitive impairment” as a loss or
deterioration in intellectual capacity that is comparable to (and includes) Alzheimer’s
disease and similar forms of irreversible dementia, and is measured by clinical evidence
and standardized tests that reliably measure impairment in the individual’s:
Short-term or long-term memory,
Orientation as to people, places or time, and
Deductive or abstract reasoning.

“Substantial supervision” means continual supervision (which may include cuing by
verbal prompting, gestures, or other demonstrations) by another person that is
necessary to protect the severely cognitively impaired individual from threats to his or
her health or safety (such as may result from wandering).

The individual also asked whether meals provided with long-term care services are deductible
medical care expenses. If an individual is in a hospital or another institution because of
a mental illness, the meals and lodging furnished as a necessary incident to medical
care are considered medical care expenses (section 1.213-1(e)(1)(v) of the Income Tax
Regulations (the regulations)). This regulation applies to individuals who must be in the
facility because of a mental illness that makes it unsafe for them to be left alone (section
1.213-1(e)(1)(v)(a) of the regulations).

However, if the principal reason for being in the facility is based on personal or family considerations, rather than the need for medical care, the cost of the meals and lodging is not a medical care expense. Only the cost of the medical care itself would be deductible (section 1.213-1(e)(1)(v)(b) of the regulations). Thus, expenses for meals and lodging that are non-deductible personal expenses at the onset of a mental illness may be deductible medical expenses after the
illness has progressed. For example, expenses for meals and lodging at a minimal-care
assisted living facility are non-deductible personal expenses. However, expenses for
meals and lodging in a constant-care nursing home may be deductible medical care
expenses if the meals and lodging are furnished as a necessary incident to medical
care.

Sincerely,
Kimberly L. Koch
Senior Technician Reviewer, Branch 2
(Income Tax & Accounting)

For more information on long-term care insurance, please visit the Website of the American Association for Long-Term Care Insurance.

2009 Long-Term Care Insurance Sales Achievement Awards Announced

2009-03-02T11:20:00.000-08:00

Winners of the 2009 Long-Term Care Sales Achievement Award were announced today by the American Association for Long-Term Care Insurance, the industry's professional trade organization.

"There are some 40,000 insurance and financial professionals who market long-term care solutions nationally," states the Association's Jesse Slome, executive director. "Each year we recognize those deemed the best in the business." The Association awarded some 650 leading producers based on the sale of individual long-term care insurance. Award recipients are ranked nationally as well as recognized on a state-by-state basis.

For 2009, new categories include multi-life long-term care insurance as well as categories for asset-based life insurance and annuity products that include long-term care benefits. "The nation's top producers placed over $500,000 in individual long-term care insurance premium, a significant achievement," Slome explains. "Leading producers providing protection to employer groups and organizations each wrote LTC insurance for over 800 individuals during a single year."

The complete listing of award winners is published in the 2009 Long-Term Care Insurance Sourcebook, the annual compendium produced by the Association. For additional information, visit the Association's website www.aaltci.org or call (818) 597-3227.

2009's Top-10 Long-Term Care Insurance Producers (Based on individual placed premium in 2008)
#1 Gene Cutler
#2 Sean Deveau
#3 David Jeffrey
#4 Sally Calef
#5 Michael Lehrhaupt
#6 Christopher Aguiar
#7 Alan Stuart
#8 Meredith Pensack
#9 Stephanie St. James
#10 Carl Brockmeyer

2009's Top-10 MultiLife LTC Producers (Based on multilife long-term care insurance placed premium in 2008)
#1 Michael VanGavree
#2 Robert DeLorey
#3 Karen Mellon
#4 Ernest Strobel
#5 Derek Miele
#6 Michael Halligan
#7 Anthony Stratidis
#8 Rachel Faiga
#9 Barry Ellis
#10 Michael Russell

2009's Top-10 Life+LTC (Combo Product) Producers (Based on placed premium for life+ltc protection in 2008)
#1 George Leamon
#2 Wendy McLaughlin
#3 Loriann Artzberger
#4 Patricia Bennett
#5 Ronald Mendelzon
#6 Corwin Freeman, Jr.
#7 Robert Jennings
#8 Elaine Todd
#9 Paul Manginelli
#10 Ed Young

2009's Top-10 Annuity+LTC (Combo Product) Producers (Based on placed premium for annuity+ltc protection in 2008)
#1 Darlis Kirchhofer
#2 Edward Pacelli
#3 Dale Boliba
#4 Steve Jacob
#5 Brad Tisdale
#6 Daniel Heacock
#7 Glenn Nitti
#8 Chuck Bahr
#9 Luana Mobley Corral
#10 Elaine Todd

Reserach Reveals Consumers Purchasing More Affordable Long-Term care Insurance

2009-02-25T08:08:00.000-08:00

Some 400,000 individuals purchased long-term care insurance protection in 2008 according to a just-released report. The overwhelming majority (84%) of individual buyers in 2008 were younger than age 65 and three-fourths (76%) selected a more affordable approach to this protection by opting for coverage for a specific number of years.

The annual study conducted by the American Association for Long-Term Care Insurance, the industry's professional trade organization, analyzed data on 215,000 buyers of individual long-term care insurance protection. According to the organization's research, some 8.2 million Americans now have long-term care insurance protection purchased on an individual basis (typically through an insurance professional) or through a plan offered by their employer.

"Individuals continue to purchase protection at younger ages," explains Jesse Slome, the Association's Executive Director. In 2008, some 53% of individual buyers were between ages 55 and 64; compared to 50% the prior year. Another 24% were between ages 45 and 54 (2008). "The age of buyers keeps dropping as consumers -- especially baby boomers -- understand the cost-saving benefits of locking in good health discounts and ways to make protection more affordable," Slome explains. In 2000, the average age of an individual buying long-term care insurance was 67.

The number of individuals purchasing long-term care insurance protection for a specified number of years also increased according to the Association study. Just over three-fourths (76%) of buyers in 2008 opted for coverage for a claim lasting five years or less; a slight increase over the prior year (71%). "The most expensive long-term care insurance policy is one with an unlimited benefit period (one with no cap on the number of years benefits will be received)," Slome explains. "Consumers are right-sizing their protection taking into account available savings and retirement income. This cost-sharing approach can reduce the cost of protection by 30 percent or more."

Perhaps in recognition of cost-consciousness, consumers were fairly evenly spread in terms of the level of selected daily benefit. Just under one-third (31.5%) opted for a daily benefit between $100 and $149. "In current dollars, that amounts to between $36,500 and $54,385 in a yearly benefit," Slome notes. "But most policies offer an option so benefits keep pace with rising costs and 15 years from now, the value of the (higher) benefit would be $75,800 a year."

The complete findings of the study are published in the 2009 LTCi Sourcebook available from the American Association for Long-Term Care Insurance. For additional information, call the Association's offices at (818) 597-3227 or visit the organization's website: http://www.aaltci.org/.

Summarized Study Data

Age of Buyers (2008)

Under 45 7%
45 to 54 24%
55 to 64 53%
65 and Over 16%

Daily Benefit (2008)
Less than $100 6.5%
$100 to $149 31.5%
$150 to $199 35.0%
$200 and Over 27.0%

Benefit Period (2008)
2 Years 7%
3 Years 30%
5 Years 24%
Unlimited 13%

Premium Paid (2008)
Age Low High Average
35 - 44 $637 $2,830 $1,650
45 - 54 $1008 $6,440 $1,900
55 - 64 $844 $7,400 $2,150
65+ $1,883 N/A $3,350

Additional information can be found in the Association's Consumer Information Center.

Marketing Long-Term Care Insurance To Affinity Groups

2009-02-04T09:33:00.000-08:00

Members of the American Association for Long-Term Care Insurance often submit questions via the organization's members only website. We solicit answers from leading industry experts and post them. I thought it would be valuable to post this one on our blog as well. As sales of long-term care insurance to associations and affinity groups grow, I believe you'll find this of value.

The American Association for Long-Term Care Insurance reached out to a leading national expert in the field, Joseph Pulitano of Advanced Resource Marketing, in Allston, MA.

The Question: I am agent of record for a large affinity group, and am debating whether to continue to use a mailback pro forma or to partner with an LTC specialty Managing General Agency (MGA). My question is, how many times more apps could I expect to receive by using the face to face process, vs the mailback process?

Joe Pulitano's reply: I don't have enough information on your group to give you a quantitative answer but I can certainly give some conceptual ones. In all of the associations and employer groups we market to we see participation rates much higher when the prospect is approached face to face with an agent.

The reasoning - Members/Employees have purchased life insurance and/or DI in the past and have perhaps purchased more than one policy. They tend to understand those products; the role they play in a person's overall financial plan and most people can adequately purchase them over the phone/mail/internet.

The people who have not purchased LTCi will hopefully only need to buy it once. For that to happen a well trained, competent agent who understands how to work affinity leads can guide a prospect through the role LTCi plays in a person's overall financial plan and help them purchase the right product at the right price.

Perhaps the best example of this is AARP. They have been offering LTCi to their membership for over 20 years strictly through over the phone and through the mail. Last year AARP contracted with a nationwide company of career agents to meet members at their homes and sell the product face to face. The results in most areas of the country have been phenomenal.

Yes, there are those prospects who do not want to sit with an agent and want to conduct business over the phone, internet, or through the mail, and as an MGA marketing to affinities we do accommodate those individuals with an on line education process and purchasing system.

When considering an LTCi MGA to handle your affinity there are several items you need to review:

1. What experience does the MGA have in affinity marketing?

2. Does the MGA have a regional of national base of agents who are experienced in working affinity leads?

3. What investment is the MGA willing to make to market to your affinity? Little or no investment means little or no leads.

4. Does the MGA have the ability to structure commissions to flow directly from the carrier to the affinity and the agent of record?

5. Does the MGA have an on line educational program Members can go to and get more information?

When an MGA is considering taking on this affinity project from you they may want to know:

1. What is the affinity between the association and the members?

2. Are other insurance products sold to affinity members?

3. What are the demographics of the affinity? There are some large affinities that will not be successful.

4. What is the retention rate of affinity members?

5. How long has LTCi been offered and what have the success rates been?

Affinity marketing of LTCi when marketed, sold, and administered correctly is a goldmine of opportunity.

Thanks Joe.

The Ask The Experts service is a benefit of membership in the American Association for Long-Term Care Insurance. To become a member, click here or type: www.aaltci.org/join into the address bar of your web browser.

Long-Term Care Insurance Producers Summit Planned

2009-01-29T19:15:00.000-08:00

The American Association for Long-Term Care Insurance, the national professional organization, announced plans for the eighth National Long-Term Care Insurance Producers Summit.

The national conference which will focus on the marketing and selling of long-term care insurance as well as life insurance and annuity products that now offer long-term care benefits will be held November 15 and 16, 2009 at the Westin Crowne Center Hotel in Kansas City, MO.

The Summit is the premier long-term care insurance industry meeting for insurance and financial professionals who market long-term care solutions to individuals and the employer marketplace.

The Association is extending a special Pre-Early Registration offer--a $130 discount off the general registration fee of $325. In addition, for those who register before February 18th, the Association will provide two $25 credits toward room charges at the Westin in Kansas City. For details on this limited-time offer, contact Jesse Slome, Executive Director of the organization. Click here of call (818) 597-3227.

Long-Term Care Insurance: What Happens After They Buy

2009-01-20T13:27:00.000-08:00

One of the most interesting aspects of my job is compiling the data for the annual Long-Term Care Insurance Sourcebook. This is a compilation of all the most relevant data we can compile ... acquire ... and share with members of the Association.

One of the questions I've been asked is "what happends after someone purchases long-term care insurance? How many people keep their policies? How many drop them? How many die?"

It is important information for several reasons. First, most people who purchase long-term care insurance understand the value of what they have purchased. Compared to other forms of insurance, fewer drop this protection that say life insurance or diability products. Thus, one can assure people who buy, they will likely have and keep this coverage should the need for benefits arise.

The 2009 Sourcebook will provide detailed (cumulative) data on what happens after people buy long-term care insurance protection. Here's what it will note based on data reported by the Indiana Partnership for Long-Term Care. Of some 43,475 policies purchased, some 8,086 have been dropped (35,412 are still in force).

The Indiana Partnership was implemented in 1993. Thus, in the 15 years since sales began, 82% of policies sold remain in-force.

Primary reasons for dropping the policies are:
Voluntary (2,016 or 25%)
Died (990 or 12.3%)
Unknown (2,543 or 31.5%)
Not Taken Up (2,381 or 29.5%)
Converted (78 or 1%)

A little tid bit worthy of including should you ever be asked the same question by a prospect or client.

For more information, visit the Association's Producer Resource Center where we will continually add new audios and information.

If you have suggestions for data you want included, send me an E-mail: Click Here.

Long Term Care Insurance Cost: What People Really Pay

2009-01-07T07:18:00.000-08:00

How much did Americans pay for long-term care insurance in 2008? What the average age of buyers? At what ages did long-term care insurance policyholders begin their claims?

Each year the American Association for Long-Term Care Insurance publishes an annual industry Sourcebook that is packed with the best facts and figures we can obtain. Some comes from independent research conducted by the Association, others from studies. Here are some findings that will be included.

Let me begin with a stated opinion. I dislike industry averages. Reporters like them and they use them regularly. But, without context, averages are meaningless. If I told you you couldn't control the temperature of the water in your shower, but that the average would be a balmy 80 degrees ... how would you feel if one minute it was 100 and the next it was 60. You get the picture.

The very same is true when it comes to long-term care insurance. For years, articles and experts talk about the average amount people pay for long-term care insurance. But, half of those who buy pay less than the average (they didn't get inferior protection) ... and half paid more (they didn't get ripped off). Okay, for those addicted to statistics, the average paid for individual long-term care insurance in 2008 will likely be about $1,900. Hope you are happy.

But for those who really want a more relevant perspective, new data that is reported in the Association's 2009 LTC Insurance Sourcebook, sheds more meaningful light. The data breaks down the range of premiums paid into age bands, showing the high and the low amount paid, as well as the mean.

Here are the findings for select age bands (2008 annual premiums paid by buyers in New York State):
Between ages 45-49 the low was $1,008 and the high was $6,445
Between ages 50-54 the low was $989 and the high was $6,407
Between ages 55-59 the low was $844 and the high was $6,939
between ages 60-64 the low was $1,125 and the high was $7,413
Between ages 65-69 the low was $1,883 and the high was $9,496

All information published in the Sourcebook or on this blog may be utilized with credit to the American Association for Long-Term Care Insurance.

Court Approves Order to Protect Penn Treaty Policyholders

2009-01-06T15:01:00.000-08:00

January 6, 2009: Pennsylvania Insurance Commissioner Joel Ario announced today that the Commonwealth Court approved his petition for an Order of Rehabilitation for Penn Treaty Network America Insurance Co. and its subsidiary, American Network Insurance Co.

The order places the company under the statutory control of the Pennsylvania Insurance Department. It also grants the commissioner direct authority to preserve the company's assets and oversee its current financial situation and operations, while continuing to pay policyholder claims.

"It is the Insurance Department's responsibility to take action when a company is in financially hazardous condition," Ario said. "Placing Penn Treaty into rehabilitation will make certain that long-term care policyholder claims are paid, helping to ensure continuity of care for a community in need. "We gave Penn Treaty time to find a buyer and infuse new capital. To date, the company has been unable to raise enough capital, so we must protect the company's assets and put policyholder protections into place. I want to assure policyholders that their policies remain in effect during this rehabilitation and that their premiums should continue to be paid in order for coverage to remain in place."

This rehabilitation is the first receivership action the department has taken in more than four years. Penn Treaty, headquartered in Allentown, provides long-term care insurance to more than 126,000 policyholders. Together, Penn Treaty Network America Insurance Co. and its subsidiary, American Network Insurance Co., write long-term care insurance in all 50 states and the District of Columbia.

The Insurance Department will perform an independent, comprehensive evaluation of the company's finances. Based upon this review and analysis, the department then will determine the viability of a rehabilitation plan. Any plan will give payment priority to policyholder claims.
Policyholders and other interested parties will receive further information about the rehabilitation in the future. In the interim, policyholders with questions on claims or non-claim matters may use the following toll-free number: 800-362-0700, ext. 3190.

Media interested in discussing consumer protections for those purchasing long-term care insurance, can contact Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance. Call 818-597-3227 or E-mail: Jesse Slome

Long-Term Care Insurance Partnership Protection - What Most People Overlook

2009-01-05T11:00:00.000-08:00

To prepare the 2009 Long-Term Care Insurance Sourcebook, which will be sent to all Association members in March, I take the time to review countless studies and reports.

One of the more interesting was published recently by the California Partnership for Long-Term Care. One of the requirements imposed on the initial four Partnership states (California, New York, Indiana and Connecticut) was the preparation of very detailed reports on buyers as well as utilization of policies. Thus, these provide some of the best snapshots of real situations ... what consumers choose and how they use benefits when needed.

I was involved with the launch of the California Partnership and I think many people either overlook or are not familiar with why the Partnership concept came about ... and why it is such a powerful solution for consumers. Bottom line: it is designed to help expand the market to "middle income" consumers who could afford shorter-duration policies with the added protection of being able to qualify for Medicaid while protecting a larger sum of assets from the spend-down requirement.

So, some of the interesting findings from the California report. Some 142,650 applications were initially submitted of which 118,390 resulted in issued policies (some 98,528 are currently active). To date, 2,082 policyholders have qualified to receive benefit payments ... and the total asset protection earned by policyholders who received benefits was $75,367,500 (which means the average payout was $36,199).

Some 187 policyholders exhuasted their benefits (722 died while in benefit) and of these 44 accessed Medicaid (Medi-Cal in California).

There is excellent data that looks at the duration of policy benefits by the people who exhausted their policy and then accessed Medi-Cal. We'll publish that and discuss it more.

But the bottomline message for those marketing Partnership protection, this is excellent coverage for those seeking more affordable plans of protection.

Comment on Congressional Budget Office Long-Term Care Proposals

2008-12-23T10:59:00.000-08:00

Received several notes from people regarding the information posted from the Congressional Budget Office's report on Long-Term Care proposals.

I thought I would share comments (below) from one leading expert whom I respect as one of the more knowledgable LTCi industry pros. On a personal note, I completely concur that the proposals will cost taxpayers and will do nothing to keep Medicaid solvent to meet the future needs of consumers. The American Association for Long-Term Care Insurance is not chartered as a lobbying entity but we'll do our best to keep everyone apprised and if the time comes to raise our voices ... we will. My goal for this blog is to be information (not an ongoing rant) ... but I'm personally glad to see some folks have signed-up. You can post comments to the blog.

Let's keep building ... we have some wonderfully bright and passionate minds (on our side!)

Jesse Slome

One Expert Comments to the CBO Proposals for Long-Term Care

"I won't go into the problems the Medicaid suggestions raise: How does a minimally trained case worker in a county get info about expenditures made 7 years ago from anyone much less from a cognitively impaired 85 year old! But the LTC insurance piece does concern me. I'm surprised you were not more critical of the CBO report proposal.

As I look at it, it would severely impact LTCi sales opportunities and harm the public.
1. Even where a person made $100K over 40 years, a savings account of 1.2% of income would only accumulate about $53K. Scarcely adequate to buy LTCi for a 65 year old 40 yrs from now. If the client had used the 1.2% right along to pay premiums rather than put money into the Treasury account it would work, but not the way this concept is set up.

2. Second, I couldn't find anything in the report about treasury bills. Nothing in the report that says any interest would be paid which makes affordability of decent LTCi at 65 even more unlikely.

3. Why buy LTCi at all until 65 when the windfall occurs. We've fought the "Medicare covers LTC" myth for years. This would be a million times worse especially since the feds will be touting the plan. Windfall is also an appropriate word. The concept implies a single premium. There is no other way to explain the report's provision that allows funds remaining after the "best" policy is purchased to go back to the accountholder (after taxes). If the CBO authors had envisioned annual premiums, this would never come up because remaining funds would be premised on death or LTC eligibility .

4. The report says insurers would have huge opportunities to sell new products. I agree, but not the products we do today nor products that actually help our clients. CBO optimism is premised on the idea that the cost of LTCi is driven primarily by negative selection. Not so. If everyone had to buy coverage, the cost of policies would go down (maybe 15%), but not enough to make even modestly adequate coverage affordable under this plan. So, at age 65, people would find that unless they were willing to kick in a lot, their promised coverage would be next to nothing. As to insurers, our sales outside the 65 mandated group would be even less than they are today.

On the bright side, we'd have the opportunity to sell new products that matched the limited account funds. On the downside, those products are likely to be standardized (whatever that means to the CBO) products (like Medigap) but dominated by NTQ minimal indemnity coverage akin the old hospital indemnity policies."

Congressional Budget Office Recommends New Savings Program To Fund Purchase Of Long-Term Care Insurance

2008-12-19T10:47:00.000-08:00

Congressional Budget Office Recommends Savings Program To Enable Americans To Purchase Long-Term Care Insurance

To aid the incoming 111th Congress and the Obama Administration, the Congressional Budget Office (CBO) has just released a 235-page report outlining 115 budget options for health care reform. The report expands on one the CBO's regular reports to the House and Senate Committees on the Budget. The authors claim the report presents ideas for reducing "and in some cases, increasing" federal spending on health care, altering federal health care programs and making (in again their words) "substantive changes to the nation's health insurance system.

When it comes to the long-term care section according to Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance, most of the changes will increase spending adding costs to an already strained federal program.

One proposal would require workers to contribute a percentage of their pretax wages to an individual account reserved specifically to pay for long-term care insurance. In the Congressional Budget Office’s estimation, a contribution of 1.2 percent of income subject to the Social Security payroll tax would meet the option’s funding requirements. Non-wage earners, such as stay-at-home spouses, would not be covered under this option.

Under the proposed plan, the accounts themselves would be administered by a federal entity, which would invest them in Treasury securities. The money in the account would be the property of the individual and would be part of the individual’s estate if he or she died before turning 65. At age 65, the balance of the account would be required to be used to purchase the most generous long-term care insurance policy available given that balance.

Here is a summary of the other proposals and some preliminary estimated costs:

1. Increase States' Flexibility to Offer Home- and Community-Based Services Through Medicaid State Plan Amendments. This option would increase Medicaid’s spending by an estimated $2.7 billion over the 2010–2014 period and by $8.1 billion over the 2010–2019 period.

2. Make Home and Community-Based Services a Mandatory Benefit Under Medicaid. This option would increase Medicaid spending by approximately $20 billion over the 2010–2014 period and by about $90 billion over the 2010–2019 period. That estimate incorporates a reduction in nursing home spending as a result of a modest decline—compared with current law—in the number of Medicaid beneficiaries who receive care in nursing homes and a subsequent increase in the number of individuals receiving home or community-based services.

3. Increase the Federal Matching Rate for Home and Community-Based Services and Decrease the Federal Matching Rate for Nursing Home Services. This option would increase Medicaid spending by about $8 billion over the 2010–2014 period and by about $13 billion over the 2010–2019 period.

4. Clarify Medicaid's Definition of Permissible Asset Transfers. This option would explicitly define which types of transfers are permissible. Because the rules are ambiguous, states tend to interpret them narrowly. This option would clarify that the following types of transfers are permissible:
Providing financial assistance to a family member for educational expenses;
Assisting a family member with medical expenses;
Assisting a family member facing a financial crisis, including a failing business or family farm;
Assisting an individual who is a caregiver for a family member or person with whom he or she lives; or
Donating funds to a church, religious organization, or charity.
Implementing this change would increase mandatory federal spending by about $2.6 billion over the 2010–2014 period and by $6 billion over the 2010–2019 period.

5. Increase the "Look-Back" Period for Transfers of Assets in Medicaid. This option would further extend that period from 60 months to 84 months for transfers made on or after October 1, 2009. Transfers made prior to that date would be subject to the 60-month look-back period. The look-back period would increase to 84 months over time, with the option generating its first budgetary effects in year six of the 10-year period from 2010 to 2019—that is, after 60 months had passed. Therefore, this change would have no effect on federal spending until 2015; over the period from 2015 through 2019, it would reduce spending by approximately $220 million.

6. Implement Policies That Encourage the Use of Advance Directives. Provided that appropriated funds were available, implementing those activities would increase federal discretionary spending by about $60 million over the 2010–2014 period and by $110 million over the 2010–2019 period. There would be a savings to Medicare of about $30 million over the 2010–2014 period and $100 million over the 2010–2019 period resulting from the portability of advance directives.

Here is the link to access the full report click on this link or paste the following address into your Web browser. The long-term care provisions are contained in Chapter 10 that actually begins on page 193. http://www.cbo.gov/ftpdocs/99xx/doc9925/12-18-HealthOptions.pdf

2009 Medicaid Impoverishment Limits Impact Long-Term Care Planning

2008-12-17T07:28:00.000-08:00

Consumers as well as agents and brokers who market long-term care insurance should have a current knowledge and understanding of Medicaid's Spousal Impoverishment rules that come into play when an individual or a spouse enters a nursing home.It is important to understand that far too many people fail to properly plan for the potential risk of needing long-term care. At a point in time when they finally anticipate the need, they are generally in too poor health to qualify. Counting on government programs such as Medicaid is certainly not going to be a viable answer going forward as Federal and State programs become more severely strapped for cash.

The expense of nursing home care, which according to the 2008 LTC Insurance Sourcebook, published by the American Association for Long-Term Care Insurance ranges from $4,000 to $7,000 a month or more, can rapidly deplete the lifetime savings of elderly couples. The cost of home care as well as assisted living can be costly as well. Generally government programs such as Medicaid do not pay for this care and, as a result, as personal savings were depleted many people were (and are) forced into nursing homes.

In 1988, Congress enacted provisions to prevent what has come to be called "spousal impoverishment" that can leave the spouse who is still living at home in the community (as they refer to it) with little or no income or resources. These provisions are designed to help ensure that this situation will not occur and that community spouses are able to live out their lives with independence and dignity.

2009 Resource Eligibility (According to CMS)

The spousal impoverishment provisions apply when one member of a couple enters a nursing facility or other medical institution and is expected to remain there for at least 30 days. When the couple applies for Medicaid, an assessment of their resources is made. The couple's resources, regardless of ownership, are combined. The couple's home, household goods, an automobile, and burial funds are not included in the couple's combined resources. The result is the couple's combined countable resources. This amount is then used to determine the Spousal Share, which is one-half of the couple's combined resources.

To determine whether the spouse residing in a medical facility meets the state's resource standard for Medicaid, the following procedure is used: From the couple's combined countable resources, a Protected Resource Amount (PRA) is subtracted.

The PRA is the greatest of:
The Spousal Share, up to a maximum of $109,560 in 2009;
The state spousal resource standard, which a state can set at any amount between $21,912 and $109,560 in 2009;
An amount transferred to the community spouse for her/his support as directed by a court order; or
An amount designated by a state hearing officer to raise the community spouse's protected resources up to the minimum monthly maintenance needs standard.

After the PRA is subtracted from the couple's combined countable resources, the remainder is considered available to the spouse residing in the medical institution as countable resources. If the amount of countable resources is below the State's resource standard, the individual is eligible for Medicaid. Once resource eligibility is determined, any resources belonging to the community spouse are no longer considered available to the spouse in the medical facility.

Income Eligibility
The community spouse's income is not considered available to the spouse who is in the medical facility, and the two individuals are not considered a couple for income eligibility purposes. The state uses the income eligibility standard for one person rather than two, and the standard income eligibility process for Medicaid is used.

Post-Eligibility Treatment of Income
This process is followed after an individual in a nursing facility/medical institution is determined to be eligible for Medicaid. The post-eligibility process is used to determine how much the spouse in the medical facility must contribute toward his/her cost of nursing facility/institutional care. This process also determines how much of the income of the spouse who is in the medical facility is actually protected for use by the community spouse.

The process starts by determining the total income of the spouse in the medical facility. From that spouse's total income, the following items are deducted:
A personal needs allowance of at least $30;
A community spouse's monthly income allowance (between $1,750 and $2,739 for 2009), as long as the income is actually made available to her/him;
A family monthly income allowance, if there are other family members living in the household;
An amount for medical expenses incurred by the spouse who is in the medical facility.
The community spouse's monthly income allowance is the amount of the institutionalized spouse's income that is actually made available to the community spouse. If the community spouse has income of his or her own, the amount of that income is deducted from the community spouse's monthly income allowance. Similarly, any income of family members, such as dependent children, is deducted from the family monthly income allowance.

Once the above items are deducted from the institutionalized spouse's income, any remaining income is contributed toward the cost of his or her care in the institution.

http://rpc.technorati.com/rpc/ping

Long-Term Care Insurance Tax Planning Idea For Business Owners

2008-12-16T07:53:00.000-08:00

Long-term care insurance is one of the greatly overlooked tax deductions with special advantaged best suited for small business owners. The American Association for Long-Term Care Insurance maintains helpful information about deductibility levels and rules on it's website. Click here to read more.

But here is a tip summarized from the just published edition of Long-Term Care Insurance Sales Strategies magazine. The idea was shared by David Hillelsohn of the Haslett Management Group.

The firm worked with an employer who desired offering an employer-paid long-term care insurance plan to employees, but only wanted to selectively provide the coverage to those nearing retirement age.

To accomplish this,, the firm created their own eligible classification for the insurance benefit by creating a point system - giving a point for years of service and a point for the employees age. Any employee with 50 or more points was eligible for the employer paid plan.

The use of Executive Carve Out plans for long-term care insurance remains one of the best ways small businesses can use pre-tax dollars to pay for this important benefit. For more information, contact your long-term care insurance professional or click here for no-obligation information.

Response To Conseco Situation

2008-12-15T13:47:00.000-08:00

I received a request for commentary on the Conseco Trust situation by Mark Miller who authors an excellent Website and blog: Retirement Revised.

Here is the response from the American Association for Long-Term Care Insurance:

When it comes to Conseco and the issue of long-term care insurance, it is very important for people considering buying protection to understand that the past does not equal the present nor the future. Conditions and state regulations mandated and approved in most states are designed to prevent just this type of situation. It is also important for consumers to know that insurers fund state guarantee funds. These guaranty funds guaranty policyholders in the case of an insurer insolvency. The limits range from $100,000 to as much as $500,000 in some states.But, let's look back. The Conseco situation was very unfortunate but other than lawyers attempting to create much ado by crying foul, the resulting agreement provides what many reasonable experts deemed the best of a lousy situation.

Why have insurers who issued policies in the late 1980s and 1990 found themselves facing unanticipated financial strains. One of the primary reasons has been declining interest rates. Insurers collect small amounts of premiums each year, invest the money in anticipation of paying future claims. When many of these policies were priced, interest rates were say 8-9 percent. As we've all seen, they've declined steadily to the point where last week the U.S. government sold treasuries at zero percent interest.

Falling interest rates are wonderfully advantageous to those financing a home or car purchase. The exact opposite is true for long-term care insurers. For every one percent drop in interest rates, an insurer would need a 10 percent premium increase (back to the issue date) to maintain targeted profitability.

Some of the larger, better capitalized insurers raised premiums on policies (these increases ranged from 8 to 18 percent). Others found themselves in a worse situation.

Bad news makes headlines and lawyers create profit for themselves by scaring people. Let's balance that with some positive news; in 2007 long-term care insurers paid $3.5 billion to 180,000 Americans who purchased this valuable protection and got exactly what they needed.

Long Term Care Insurance Videos - Featured Claims Stories

2008-12-12T15:19:00.001-08:00

Five videos discussing the importance of purchasing long-term care insurance have been posted by the American Association for Long-Term Care Insurance on the new YouTube page established by the organization.

The first video features a three-minute television appearance by Jesse Slome, the Association's executive director. Slome recently appeared on the noon news in St. Louis, MO to discuss key facts consumers need to know about long-term care planning and insurance protection options.

Two additional videos feature Association members Harry Crosby and Fred Frauhiger who appeared on their local television news shows during 2008's Long Term Care Awareness Month. Both experts share relevant information for consumers.

The final two videos feature interviews with real claimaints who were featured in the 2008 Long-Term Care Insurance industry advertisement that appeared in the December 2008 edition of Kiplinger's personal Finance magazine. The ad was supported by eleven leading long-term care insurers. Click here to link to the page where the ad can be viewed.

All five videos can be viewed online. Click on this link or paste the following text into your web browser's address box: http://www.youtube.com/LongTermCareInfo . The Association plans to add additional long-term care insurance claims stories throughout 2009.

Finding Security In Guaranty Associations

2008-12-11T14:26:00.000-08:00

Guaranty associations were created by states to product insureds in case of a company insolvency. All insurance companies licensed in a state are required, as a condition of doing business in that state, to be a member of the guaranty association.

The guarantee varies but generally ranges from a minimum of $100,000 to $500,000 in some states (Connecticut, New York and Washington).

Insurers are forbidden to talk about this guarantee (unlike banks that are encouraged to promote the FDIC guarantee).

I plan to interview Peter Gallanis, the national director for the national organization representing each of the state guaranty associations and look forward to posting meaningful information as part of our Ask The LTC Guy Q&A featured on the Association's Consumer Information Center.

I have a list of questions that I plan to ask Mr. Gallanis but if you have suggestions, please E-mail me at mailto:jslome@aaltci.org .

Thanks. Looking forward to sharing some of the findings here as well.

Free Marketing Tool For Agents

2008-12-10T07:47:00.000-08:00

Yesterday we announced the 2009 National Long-Term Care Sales Achievement Award which recognizes producers (even those who make minimal sales). If you are not familiar with the award, click on this link.

I'm glad to say some 75 producers entered during the first day. But that's not what prompted this message. Our system tabulates the entries and it also keeps track of lots of meaningful info.

One thing it records is the number of people who use the free E-card we placed on our Members Only Page. We don't see any names ... just a counter of how many people used in the past 30 days.

I was shocked to see the number was 13. It's free! It's private. You can personalize it. Replies go back directly to you the agent who sent this.

And, in fact, we are going to be adding a second E-card that agents can use to target business owners.

The ability to use free E-mail marketing to generate interest is a powerful, most powerful marketing tool. And, if you are not collecting E-mail addresses for every person you come in contact with, you are missing the boat.

More important, you need to be segmenting your E-mail lists so that you can selectively target people. Lists I would consider are: clients, non-buyers (who you met with), women living alone, business owners and self-employed.

For now, go to the Association's website. Click here. Go into the Producer's Resource Center and there you will find the Members Only tab. That's your access to free marketing tools, including the E-card. The first one targets women. Try sending the card to yourself ... and then start using these free E-cards to market. We'll have more cards added ... as more people use them.

Let me know what you think. I'll share more tips on the topic.

New LTC Insurance Guide For Accountants Published

2008-12-09T16:57:00.000-08:00

One of the best ways to generate referrals of long-term care insurance prospects is by working with accountants and CPAs. They know which clients own businesses (and are looking for tax deductions). They know which individuals have assets they'd like to protect.

The American Association for Long-Term Care Insurance has updated this guide with 2008 and 2009 tax deductible rules and limits. Copies are available in packs of 50.

If you are an Association member, you can order individual copies. The cost is $4.50 for 5 copies and $7.50 for 9 copies. This includes postage costs. At over 9 pieces, we would need to mail Priority Mail at $4.80.

For more information, call the Association at (818) 597-3205. If you are a member and wish to order individual copies, just mail a check to AALTCI, 3835 E. Thousand Oaks Blvd., Ste 336, Westlake Village, CA 91362.

All our brochures are viewable online. See All AALTCI tools. Click here now.

Ages When People Buy Long-Term Care Insurance

2008-12-08T10:22:00.000-08:00

I've talked a bit about how there's no "best" age to buy long-term care insurance. And, that it's really a matter of when you can still health qualify.

But, today's consumer caller wanted actual numbers. So, there will undoubtedly be others who are interested.

In 2007, the last year for which data was gathered by the American Association for Long-Term Care Insurance, here's the age of new buyers. The data was based on about 200,000 new insureds.
Under age 35 ... 1%
Age 35-44 ........ 6%
Age 45-54 ........ 26%
Age 55-64 ........ 50%
Age 65-74 ........ 15%
Age 75+ ............ 2%

My personal advice to folks is that your mid-50s is the best time to start the process. As I've seen myself, no one who is 50+ leaves the doctor's office without some presecription in hand. That may not cause you to lose good health discounts (or be ineligible at any cost) but why risk it.

For more information, visit the Association's Consumer Information Center where you'll find a wealth of helpful info.

Long-Term Care Producer Sales Contest Open

2008-12-05T10:55:00.001-08:00

This message is for insurance agents and financial professionals who market long-term care insurance policies as well as asset-based products. Each year, the American Association for Long-Term Care Insurance conducts the National LTCi Sales Achievement Awards which recognizes the nation's leading producers.

All entrants are ranked on a national as well as a state-by-state basis. Names of awardees are published in the 2009 edition of the Association's Long-Term Care Insurance Sourcebook.

There are multiple categories and there is no cost to enter. For complete information and our online entry form, click this link now. The final date for entering is January 23, 2009.

The awards are a benefit of Association membership. For more details, visit our website or click on this link now to see the many benefits of belonging.

What Options Must Insurers Give When Raising Rates

2008-12-04T07:58:00.001-08:00

Today's consumer inquiry raises a point that will be of interest to both consumers and those marketing long-term care insurance.

Q: "If an insurer decides it needs to increase rates on an existing class of business (meaning all policies that are in that "class') must they offer consumer alternative options? Or, is this something the insurer has discretion over?"

I thank Dawn Helwig, Principal with Milliman, Inc., and a long-time supporter of the American Association for Long-Term Care Insurance for helping with the following answer.

Effective with the rate stability regulation, all policies have to give policyholders the right to reduce their premium at any time, by reducing their maximum benefit or their daily benefit. So, this isn't just tied in to a rate increase. For policies issued before rate stability, I don't think a carrier has to give that option anytime - even at rate increase time - but most do.

Today's Wall Street Journal Article

2008-12-03T09:52:00.000-08:00

Today's Wall Street Journal contains an article by M.P. McQueen that looks at the trust established to handle the Conseco policyholders. Kudos to MP for doing a thorough and balanced job.

To see the article, while available, here is the link:
http://online.wsj.com/article/SB122826822305174269.html?mod=googlenews_wsj

There are two things I believe it is vital to keep in mind. It doesn't matter if you are a consumer ... or an insurance professional ... these are important points.

First: The past doesn't equal the future (I'll write another blog on that one day soon).

Second: States have guarentee funds that protect consumers ... similar to the FDIC protects bank depositors. No one writes about these (MP McQueen did ... and kudos to her).

Expect attornies such as Frank Darras to use the media to gain notoriety and clients. The law firm he worked for took out a 2-page ad spread in this past Sunday's LA Times Magazine. These don't come cheap ... and while they may believe they protect and serve consumers ... let's be honest ... they are not "legal aide".

The American Association for Long-Term Care Insurance always believes an educated consumer is the best customer. We welcome healthy and balanced discourse that protects consumers while educating them so they can make good sound decisions.

We'll definitely do our part.

Don't Overlook Tax Deductibility of LTC Insurance

2008-12-02T08:24:00.000-08:00

Today's call came from an insurance agent who was (yes, still) unfamiliar with the tax deductibility rules pertaining to long-term care insurance. While the American Association for Long-Term Care Insurance does not provide tax advice, our website has very complete information including the new 2009 tax deductible levels for long-term care insurance.

Long-term care insurance is one of the few products that has all of the considerable tax advantages offered by both the Federal government and many states. Few individuals are aware of the rules ... and business owners in particular are not aware that costs for this valuable protection can be 100 percent tax deductible.

Click this link now here to go to the information on the Association's Consumer's website or copy and paste this rather long link into your browser. http://www.aaltci.org/long-term-care-insurance/learning-center/tax-for-business.php

Insurance agents should consider using the Association's most-popular guide to Tax Advantaged Long-Term Care Insurance for Business Owners and Self-Employed Individuals. It spells out all the rules and has the updated 2009 tax deductibility rules. They come in packages of 50.

Click this link now to see the information or copy and then paste this link intio your web browser Address box. http://www.aaltci.org/subpages/resources/marketing_bizowner.html.

This Really Should Be Called Long-Term Home Care

2008-12-01T15:20:00.000-08:00

Received a call from a consumer today that's reflective of many questions we've received over the past 10 years; "what if I never go into a nursing home," he asked.

My glib response was, "consider yourself lucky. But that's not a reason not to consider long-term care insurance." I explained that in 2007 (the most recent year for which the American Association for Long-Term Care Insurance gathered data) some 43.0% of long-term care insurance claim benefits went toward home care expenses.

The fact is that most people today ... and most who'll likely need care in the future ... want to receive care in their own home. And, long-term care insurance provides you with the ability to do just that. By the way, I explained, some 32.9% of individual claim benefits in 2007 went for assisted living care. Only 24.1% went for nursing home.

But don't take my word for it ... watch a brief video of Rosemary talking about how their long-term care insurance policy allowed her husband to recover at home. Her words are more powerful than mine could ever be. Click on this link http://www.aaltci.org/claims ... the whole video is 5 or 6 minutes and extremely moving.

A Failure To Plan ... Is A Plan For Failure.

The Most Misunderstood 2 Facts About LTC Insurance

2008-11-30T12:28:00.000-08:00

I get many calls from consumers seeking information about long-term care insurance and the #1 question they typically ask is "what's the right age to look at this protection?" Here's what I tell them. There is no "best" age because the most misunderstood fact about LTC protection is the requirement that you health qualify before an insurance company will issue you protection.

So, if you are in great health ... then you can apply at any age. But, most of us are not in perfect health. And, once we reach our 50s, our doctors have typically prescribed a medication (or two or three). It's these changes in our health that could cause you to pay more for long-term care insurance. Or, worse, it could make it impossible for you to health quialify ... no matter how much you'd be willing to pay.

A couple of points. First (and I'll do more blogs on this in the future with some data ... for those who like facts) ... generally your 50s is the "Sweet Spot" for when you should really start to look at long-term care insurance. That's because your mid-50s is when you are still most likely to qualify for good health discounts ... and still not have those health conditions that would get you to disqualify.

Second, if you currently have some health conditions or even had some health conditions (we'll write more about instances where companies will re-look at applicants who have recovered from serious health issues) ... you should consult with a long-term care insurance professional.

Click on this link to go to the American Association for Long-Term Care Insurance's website where you can submit some simple information and we'll connect you with a member who can asnwer your questions. Click on this link now: http://www.aaltci.org/long-term-care-insurance/free-quote/

2008-11-27T09:56:00.000-08:00

Welcome to this new blog, designed to provide meaningful information to consumers interested in purchasing long-term care insurance as well as for insurance and financial professionals looking to properly market and sell this important form of protection.

The American Association for Long-Term Care Insurance does NOT sell insurance products. However, we maintain the nation's most comprehensive website with the latest and most current information on the topic.

Consumers can visit the Association's Consumer Information Center where you can simply type in your Zip Code to find a local long-term care insurance agent. Or, you can click on this link now to answer a few questions and we'll arrange for one of our members to provide you with free, no-obligation information.
Click here now. http://www.aaltci.org/long-term-care-insurance/free-quote/

Insurance and financial producers can visit our extensive Producer's Resource Center where we have a wealth of information and marketing tools you can use. To transfer to the Center, click here now: http://www.aaltci.org/for_producers/

If you have questions, please free to E-mail me at mailto:jslome@aaltci.org as I look forward to making this blog of real value to all.

Thank you for taking the time to read and comment.