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
Thứ Tư, 1 tháng 12, 2010
Thứ Ba, 2 tháng 11, 2010
2011 Long Term care Insurance Tax Deduction Limits Announced
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 .
"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 .
Thứ Ba, 26 tháng 10, 2010
LTC Association Marks Long-Term Care Awareness Month
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.
"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.
Thứ Ba, 17 tháng 8, 2010
Long-Term Care Insurance Sales Summit Set For Vegas
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.
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.
Thứ Ba, 27 tháng 7, 2010
Congressman Launches Effort To Stop The CLASS Act
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.
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.
Thứ Năm, 22 tháng 7, 2010
Caregiver of Year Award: Entry Deadline July 26
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
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
Thứ Ba, 25 tháng 5, 2010
Republicans Conclude CLASS Act Should Be Repealed
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, 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 .
Đăng ký:
Bài đăng (Atom)