"You can forget what you thought you knew about
insurance and insurance agents, because LTCi is a
new and different animal. It is wise to investigate
as soon as you see a possible need because you never
know what the future may bring, or when. Not
everyone is eligible to enroll, especially if they
procrastinate until a health condition makes them
ineligible," says Scott Olson. He is the Florida
Consulting Broker for the Long Term Care Insurance
Buyers Advocate Alliance.The Alliance is a consumer
advocacy group dedicated to insurance buyers'
rights."If nearly 50% of the population will
eventually need care and only 7% are covered, then
it is clearly time for smart people to move forward
with their planning before it's too late."
Amazingly, Mr. Olson’s own father-in-law was not
insured in April 1998 when he experienced a massive
stroke. Once he was afflicted he was no longer
eligible enroll."Now the whole family is suffering,
because we put off planning for a possible
incapacity.I feel terrible because we could have
saved untold tens of thousands of dollars through
prudent insurance planning.The main problem here is
that families are not comfortable discussing these
issues in advance.There is a lot of avoidance,
denial and procrastination and it's a real shame."
In order to encourage citizens to act early in
their own behalf, legislation has been enacted which
supports the purchase of private LTCi coverage
through Federal and State tax incentives. Yet few
people know how to determine if it might be
appropriate for their family. "One reason people
delay their research is that most folks are not
ready to invite the neighborhood insurance agent to
deliver a presentation full of complicated features,
benefits and strange terminology," explains Steve
Eads, CLU of the National Advisory Council for Long
Term Care Insurance, "In most cases, people want to
bone up on LTCi before they contact an LTCi
specialist."
Naturally, people have many questions. They want
to know what LTCi is and why they should care. What
are the benefits and eligibility requirements? Is
LTCi worth the cost? What is the best age to enroll?
You'll get savvy answers in this series. You'll also
find directions to some little-known Internet
resources for both further study and breaking news
on LTCi-related topics.
LTCi 101 - THE BASICS
Like health or auto insurance, LTCi incurs a
periodic premium expense. There are no accumulated
"cash values". If you are one of those that need the
benefits, then you are covered.If not, then the
premium can be perceived as an expense you are
willing to bear to assure family security.
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