TERM INSURANCE AGENCY
Robert M. Coleman
Calif. Lic. #0563687
P.O. BOX 10457 Santa Ana, CA 92711
November Is Long Term Care Awareness Month
How to pay for long term care insurance:
1. Deposit a lump sum into a single premium annuity and take systematic withdrawals to pay policy premiums. For instance, to pay a ten pay policy, make ten annual withdrawals to pay premiums. Most annuities allow a 10% annual withdrawal without incurring penalties. An IRA can be used, but there are penalties if withdrawals are made before age 59 1/2.
2. Use a modified endowment contract life insurance policy with a single deposit sufficient to fund a long term care rider. This strategy has the advantage of providing a death benefit, long term care funds, or the return of premium deposit less any loans or withdrawals. There are at least 2 life insurance companies offering life policies designed to fund long term care.
3. Identify an income producing asset to pay premiums as they fall due. The asset would remain in your estate instead of being liquidated to pay long term care costs.
4. Get a policy paid for by your employer. Or, ask your employer how to get discounted premiums at group rates.
Include long term care needs in estate and retirement planning. We buy life insurance to pay for an event certain to happen whose date and circumstances are unknown. So, why buy long term care insurance? Research data indicates the greatest need for LTC coverage will be to cover an event lasting about 3 years. The greatest need is to cover care for chronic conditions which trigger the loss of 2 or more activities of daily living (ADL). ADLs are; eating, bathing, dressing, continence, transferring, toileting, or a diagnosis of cognitive impairment. The loss of any 2 ADLs would prompt your LTC policy to begin its benefit payment after the elimination period. An elimination period is like a deductible lasting 0, 30, 60, or 90 days. But, what if you only need assistance with incidental activities-like cooking, transportation, medications, or stand-by supervision? It’s called home care and can be covered by the LTC policy. Additional levels of coverage such as; intermediate, adult day care, assisted living facility, skilled nursing care, and nursing home custodial care needs can also be covered by your LTC policy.
Why buy a California Partnership long term care policy?
1. The policy will protect your assets from Medi-Cal “spend down” requirements on a dollar for dollar basis.
2. Rates are capped and premium increases must be approved by the state.
3. Only state approved plans from select insurance carriers can be sold in Calif.
4. Care Management must be included in Calif. Partnership plans.
5. Inflation protection is required coverage.
Your family is going to need help when it comes time to assess your needs and make arrangements for your long term care. I call it the “Transitions Plan”. For instance, consider a Calif. Partnership LTC policy with a 2 or 3 year benefit period. The policy is required to have a care management benefit which does the following: A Care Management Provider Agency staffed by nurses and licensed social workers approved by the Partnership takes an all-inclusive look at a person’s needs and resources, then links the policyholder to a full range of appropriate services. In other words, the Agency is going to help your family find the best setting for care, the funding to pay for care, and you don’t have to pay a dime for the agency’s services. When the time comes, who in your family will do the following? Conduct a face to face assessment, develop a plan of care, repeat the face to face care assessment every 6 months, coordinate and monitor the long term care services you are receiving, and develop a discharge plan and implement a transition to Medi-Cal immediately upon eligibility?
The California long term care Partnership policy will do all those services for you, and more.
What you need to do:
1. Educate yourself about long term care services and costs in your area. Visit my website:
www.colemaninsurance.com and click on the tab-“Long Term Care”.
2. Learn how Medicaid (Medi-Cal in California) works, its rules and regulations, and how they impact LTC funding.
3. Contact me to get a personal worksheet to assist you in designing a strategy to fund your long term care needs.
Why do you need long term care insurance?
Look in your garage. Is there a motorcycle, ATV, scuba gear, water or snow skis, a jet ski, speed boat, or extreme sports equipment? Is there a vehicle driven faster than 40 mph with you in it? I know, you’re a safe driver, but what about the other drivers? A debilitating disease or disabling injury can happen at any age. If you need LTC insurance and don’t have it, the only replacement is money or Medicaid (Medi-Cal). Either way, you must spend down your assets to meet Medicaid regulations.
“I have disability insurance at work to cover me”.
Disability income insurance will replace part of your income. The coverage is not designed to meet long term care costs.
What about Medicare?
Medicare pays for rehabilitative care on a limited basis for a limited time. You need coverage for chronic conditions from which recovery or improvement is not expected.
“My attorney has a plan to protect my estate assets.”
I would be in big trouble if I sold you a long term care insurance policy from a reputable carrier for which you were neither eligible nor met suitability requirements. If you have an estate too small or too large to warrant a Partnership plan, a suitability statement must be a part of the policy application. With a drop of ink and the stroke of a pen I can create a pool of money with Care Management to help pay your long term care costs.
Your attorney or real estate agent can’t do that.
Get the facts, get a quote, and then contact me to arrange an appointment.
Click here to learn more about the California Partnership long term care plans:
Click here for a list of Partnership states
*See disclosure notice below.
Robert M. Coleman-Calif. Ins. Lic. #0563687
*Disclosure Notice-Asset protection is not guaranteed. Federal and state governments have the right to modify or discontinue Partnership programs, which could affect future asset protection benefits. Partnership programs may not protect a policyholder’s total assets. If a policyholder moves to another state, and that state has not adopted reciprocity for asset protection, or has not implemented a partnership program, the asset protection feature may not function.