Litigation

Think Long Term Care Insurance is simply for old-timers in nursing homes? Think again!

According to a study published by the American Association For Long Term Care Insurance:
$3.5B in claims were paid out in 2007 to 180,000 Americans.
3% of new claims open were for clamants under age 60.
43% of claims were for home care
32.9% were for assisted living

Structured settlement industry stakeholders should be acutely aware of life's twists of fate and the costs associated with maintaining a life when there are special needs or long term care needs, for example when the drunken schmo that runs that red light has only $100,000 in coverage and your PIP amount is not adequate.

While Alzheimer's was the number one cause of LTC claims, other conditions more familiar to structured settlement stakeholders follow closely behind. For example injury was #4 out of 9, Arthritis was #5.

Do you own long term care insurance and are you recommending it to your clients? Consider opening the discussion as part of the settlement planning process.

I have owned Long Term Care insurance as a "defensive investment" since I was 38. I pay $83.64 per month (barely a grand a year) for what started as $200/day benefit for lifetime. The daily benefit has increased at 5% per year and is now at about $310.25/day of $113,000/yr and counting of financial muscle between me and my assets in the case of a scenario that requires long term care.

If you are able to qualify, the purchase of long term care insurance can help preserve assets leaving them more to enhance the quality of life for themselves and their family.

Think you're invincible now? Why not look at it as a cost saving thing?

According to the 2008 National Long Term Care Insurance Price Index $150/day benefit for 3 years (mine is lifetime) for a 55 year old averages $1,578 per year for a single and $1,064 per year when combined with a spousal plan. To approximate my current daily benefit today the 55 year old would need to pay on the average $3,156 per year or $2,128 with spousal discount. A 65 year old would have to pay on the average $6,000 per year as a single or $4,026 per year with a spousal discount.

So are you getting younger and healthier? Remember, you must qualify medically to get the long term care insurance.

Thinking about putting it off til you get closer to retirement?  Given the last few month's events have your retirement plans changed due to an erosion of your savings?  Think smart and plan ahead.