Amazing Facts About Long-Term Care

شاهد الفيديو

When you think of long-term care insurance, what comes to mind?

Unfortunately, some people hold certain misconceptions or have an unfavorable opinion of long-term care insurance, largely stemming from issues related to its early days. But that was then. Today, there are more options focusing on straightforward and flexible long-term care solutions. Let’s take a look.

1. You decide where care is received. One of the most common myths is that long-term care insurance only provides nursing home care, and nothing is further from the truth. It provides home care for those who prefer to “age in place,” as well as care at adult day care, assisted living facilities and hospice centers. In fact, most newly opened long-term care insurance claims are for home care, according to the American Association for Long Term Care Insurance (AALTCI).

2. Benefits can be tremendously flexible. In addition to options for where care is received, most long-term care insurance policies offer greater flexibility in the types of services available, such as home modifications like installing grab bars or a wheelchair ramp to help you stay at home longer and safer; or other care-related products and personal supplies, like a lift chair or hospital bed.

3. It supports family caregivers. Long-term care insurance recognizes the important role family caregivers play in long-term care situations by offering options that can make it easier for families to care for the ones who cared for them. Most policies provide caregiver training for family members, which helps ensure care recipients are getting the best care possible. Other policies go the extra mile by recognizing family caregivers, and even family friends who provide care, as informal caregivers, making their time and services reimbursable under the policy.

4. It offers shareability for couples. Many long-term care insurance policies offer an optional benefit commonly known as “shared care,” which allows couples to share their coverage and maximize their benefits. Here’s how it works: if one spouse exhausts his or her benefits, he or she can begin using the other spouse’s benefits. This provides couples with peace of mind knowing that their coverage will be there if care is needed for longer than expected. It typically also includes a built-in protection to ensure a surviving spouse can still receive long-term care insurance benefits.

5. It’s not “just for older people.” While it’s a critical part of retirement planning and important protection for your later years, the younger you are when you apply for long-term care insurance, the better. Age and health are two of the most important factors when applying, so applying at a younger age will help make it more affordable, and you are likely more insurable from a health perspective. Additionally, accidents and illnesses can happen at any age and include the need for extended personal care. Planning ahead can really pay off.

6. Long-term care insurance carriers paid $7.8 billion in benefits last year.According to AALTCI, carriers paid a record $7.8 billion in claim benefits to 250,000 individuals in 2014, up from $7.5 billion the previous year. You can interpret this number a couple of ways: People are living longer and more care is needed, or the cost of care is increasing, which are both true. But it also shows that long-term care insurance is working. It’s helping families provide care for their loved ones in a setting that they prefer and protecting their finances.

I encourage you to learn more about long-term care insurance and why it’s a critical piece of retirement planning. Ask your financial advisor about these and other features and how it has helped their clients like it helped 250,000 families last year.

You can also check out this Real Life Stories video about the Mollicone family, which does a great job of showing how long-term care insurance can protect a family’s finances, provide peace of mind, and lessen the impact of long-term care when it is needed.

4 Financial Tips to Keep Your Family Safe

شاهد الفيديو

It’s tough to get our financial house in order, not because it’s especially hard, but because it’s … boring? Tedious? The last thing we want to spend time on? To remedy that, here are four tips that you can take on and accomplish:

1. Make sure you have life insurance—or enough of it. Do you really need life insurance? Well, answer this question to find out: Would your loved ones suffer financial if something happened to you? If the answer is yes, you need life insurance. Then comes the question, how much? There are a number of factors that go into calculating how much life insurance you might need. But it doesn’t have to be difficult. Instead, use thisonline Life Insurance Needs Calculator, and in just a couple of minutes you can have a working idea of the amount you need. If you already have life insurance, why not use this calculator to make sure you have enough!

And don’t let cost—or actually perceived cost—stop you from getting coverage. Did you know that 80% of people overestimate how much life insurance costs? And those under 25 think it’s four times more expensive than it actually is. Let’s frame it this way, say you’re 30 and in good health, a 20-year level term life insurance policy with $250,000 of coverage may cost around $13 a month. That’s the equivalent of a few Starbucks drive-through lattes. Here are a number of ways you can get coverage or search for an agentif you don’t have one.

Would you like to your ex-spouse to get your life insurance if something were to happen to you because you forgot to change the beneficiary on your policy?

2. Review your life insurance beneficiaries. Would you like your ex-spouse to get your life insurance if something were to happen to you because you forgot to change the beneficiary on your policy? Would you like the money to get tied up in court because you named your minor children as the beneficiaries? These are missteps that happen more than you think. Add to that the fact that people may have more than one policy—for example one through the workplace (a group policy) and one that they bought individually.

This is exactly the type of thing that a life insurance agent or advisor can help you with. And it won’t cost you anything to talk to them about it. Plus, if you’ve gone through tip #1, they can double check that the amount of coverage you came up with meets you needs. Also, it’s honestly a lot less hassle to have someone who knows what they’re doing help you out, and isn’t that what we’re trying to achieve here—get it done?

3. Don’t skip disability insurance. Many people aren’t really familiar with what disability insurance is and what it does. Basically, it replaces a portion of your income if you’re unable to work due to a disabling illness or injury. Why is that important? Think about how long you could make ends meet—pay rent or the mortgage and all your monthly bills if your paycheck suddenly disappeared. A Life Happens survey found that a majority of those who work wouldn’t make it more than a month before they’d have to make some serious financial sacrifices. Again, an online calculator can help; get started with this Disability Insurance Needs Calculator.

So, how do you get it? Your employer may offer disability insurance coverage through a group plan. If you’re not sure, contact your HR department or benefits manager to find out what kind of coverage you have (if any). If you don’t have coverage or need more than is offered through work, buying your own disability insurance policy is worth considering. Unlike group coverage, privately owned insurance stays with you even when you change jobs.

Also keep in mind that most people overestimate what the government will pay or cover if something were to happen. According to the National Safety Council, 73% of long-term disabilities are a result of an injury or illness that is not work-related and therefore wouldn’t qualify for Workers’ Compensation. And if you were hoping for Social Security disability benefits, know that about 45% of those who apply are initially denied, and those who are approved receive an average monthly benefit of around $1,100, which would leave you living at about the poverty level.

4. Automate your emergency fund. While not as fundamentally critical as the above tips, this will probably have the most impact on your day-to-day life. Everyone one of us runs into unexpected events that are costly—a major car repair, a leak in the roof, a job loss … the list, as you know, can seem endless. To give yourself peace of mind and bit of cushion, set aside a certain amount each month—it could be $50 or $500, depending on your financial situation—and have it automatically deposited into your savings account. If it’s easier to track, you could even keep it in a separate account. Then it becomes a no-brainer, because that money isn’t there for you to spend. In a year, if you chose one of the above amounts, you could have $600 or $6,000 stashed away!

These tips will set you on the path of ensuring that if the unforeseen happens, you and your family will be OK financially. And what’s worth more than your peace of mind?

8 Financial Must-Dos for Newlyweds

شاهد الفيديو

My wife and I went tandem bungee jumping together on our honeymoon. There’s something about an adrenaline rush like that that gets you thinking about the bigger picture. And as a newlywed financial planner, it prompted me to think about the planning we had in place and have a conversation about what our future goals looked like.

First, just talking about it is the biggest step. Open communication between you and your new spouse about your joint financial goals is one of the most important things you can do so you can avoid financial surprises down the road. Once you know where you stand and where you want to go you can take the proper steps to get there. Here is what we learned.

1. Set up a joint checking account: Even if you plan to keep your finances somewhat separate, it is very helpful to have a joint checking account that you both have access to.

2. Set a budget: Make sure you are on the same page about how much you are saving and spending on a monthly basis. You will also want to evaluate the debt you each have and set up plan in your monthly budget to pay off the highest interest rate debt first.

3. Coordinate benefits at work: Figure out if joining a spouse’s medical or dental insurance plan offers better coverage and/or pricing than what you currently have. Also make sure you are both taking advantage of company matches in your retirement plans.

4. Re-evaluate your overall investment allocation: Now that you have joint goals, you should make sure your investments aren’t counteracting each other. You want to make sure you are not unnecessarily taking risk by being too overweight in a certain area.

5. Protection plans: Someone else is now relying on you and your income. Make sure you have the proper amounts of disability insurance and life insurance in place so if something terrible does happen it won’t financially ruin the other.

6. Beneficiaries and titling of accounts: Most of your retirement accounts and insurance will never pass through a will if you die. This is the same with joint accounts. They go directly to the named beneficiary or joint account holder. Because of this, make sure they are all set up the way you want them.

7. Name change: If you change your name, make sure you update and notify the IRS, Social Security, credit card companies, DMV, banks, etc.

8. Emergency fund: Make sure you have enough cash readily available in case of an emergency. This could be three months to a year of your salary, depending on how secure your job is and how volatile your income is.

It can be a daunting task to coordinate finances with your new spouse, but it is very important. Once completed, all of these steps will help you smoothly move forward financially with your new spouse.

This article is intended for informational purposes only and should not be construed as a recommendation to purchase or sell any security or securities product. Matt Hoesly is an investment advisor with Resource 1, and a registered representative of Ceros Financial Services, Inc., Member FINRA/SIPC. (Resource 1 and Ceros are not affiliated entities). Securities offered through Ceros Financial Services, (Not affiliated with Resource 1, Inc.). 1445 Research Boulevard, Suite 530, Rockville, MD 20850. (866) 842-3356 Member FINRA/SIPC