| Paul B. Plant National Academy of Elder Law Attorneys |
LTCI Buyers Beware
As reported in The Wall Street Journal, the Pennsylvania Insurance Commission
placing 140,000 Conseco long-term care insurance policies into a trust must be of
concern to every owner of a long-term care insurance policy.
The purpose of purchasing long-term care insurance is to eliminate concerns about the
ability to pay for long-term care costs without totally depleting one's life's savings.
Unfortunately, the Conseco story coupled with reports of some companies refusing to
honor legitimate claims for coverage and others raising premiums on existing
policyholders makes it difficult for anyone to breathe easily.
So, what should anyone considering purchasing long-term care insurance do? Here are a
few rules of thumb:
1. Purchase only policies issued by companies which Standard & Poors and
A.m. Best rank as being the most financially secure. 2. Don't purchase a policy whose
premium is much lower than those of policies offered by other companies. If it's not in
the mainstream, you have to assume that it will have to raise premiums in the future.
3. Only purchase a policy that you can afford to pay indefinitely. If you have to give it up
after five years, you have helped the insurance company, but not yourself.
4. Almost always, purchase a policy that covers home care as well as nursing home care
and which includes an inflation rider to cover increases in the cost of care.
5. If you cannot afford to purchase the full coverage you want, cut down on the length of
coverage rather than the daily benefit. For instance, if you would like a benefit of $200 a
day for four years, but cannot afford the premium, you are better off purchasing $200 a
day for two years rather than $100 a day for four years.
6. Always use a broker who has experience with long-term care insurance so that you
can benefit from his/her knowledge of the policy provisions and the companies selling
the policies.
By following these few rules, consumers can feel more assured that their long-term care
insurance will be there when they need it.
Under the DRA, the penalty period will commence on the later to occur of the first day
of the month in which the transfer was made or the date on which an individual is
eligible for Medicaid benefits and would otherwise be receiving institutional level of care
based on an approved application for such care but for the imposition of a penalty period.
Elder law attorneys are working with our nation's seniors on a daily basis. They are in
position to see the deficiencies of our federal benefit programs, to identify products that
fit specific needs and to work with families to meet the needs of their loved ones. Our
nation owes our elders the opportunity to live and die with dignity. Elder law attorneys
bring concern, care, and compassion to vulnerable individuals who are often in very
delicate and complicated situations.
ABOUT THE NATIONAL ACADEMY OF ELDER LAW ATTORNEYS
Established in 1987, the National Academy of Elder Law Attorneys (NAELA) was formed
to enhance the quality of legal services available to the elderly and people with special
needs in the United States. Members of NAELA are attorneys who have demonstrated
experience and training in working with the legal problems of aging Americans and
disabled individuals. http://www.naela.org.
ABOUT HARWELL, PLANT & WILLIAMS, ATTORNEYS.
Established in 1974, Harwell, Plant & Williams has a long history of service to client and
community. Our attorneys and professional staff offer a wide range of legal services to
citizens and businesses throughout southern Middle Tennessee. Paul Plant has been a
member of the National Academy of Elder Law Attorney's exchange ideas and other
information important to senior citizens. His active involvement in NAELA has offered
Mr. Plant quality assistance in his representation of the elderly and those with special
needs.
Contact us at 762-7528 in Lawrenceburg, 363-6500 in Pulaski, or Toll-Free 877/460-6467.
HARWELL, PLANT & WILLIAMS, 225 Mahr Avenue, Lawrenceburg, TN 38464
Plant@harwellplant.com www.harwellplant.com
National Academy of Elder Law Attorneys, Inc.
604 North Country Club Rd, Tucson, Arizona 85716-520/881-4005
Fax-520/325-7925
placing 140,000 Conseco long-term care insurance policies into a trust must be of
concern to every owner of a long-term care insurance policy.
The purpose of purchasing long-term care insurance is to eliminate concerns about the
ability to pay for long-term care costs without totally depleting one's life's savings.
Unfortunately, the Conseco story coupled with reports of some companies refusing to
honor legitimate claims for coverage and others raising premiums on existing
policyholders makes it difficult for anyone to breathe easily.
So, what should anyone considering purchasing long-term care insurance do? Here are a
few rules of thumb:
1. Purchase only policies issued by companies which Standard & Poors and
A.m. Best rank as being the most financially secure. 2. Don't purchase a policy whose
premium is much lower than those of policies offered by other companies. If it's not in
the mainstream, you have to assume that it will have to raise premiums in the future.
3. Only purchase a policy that you can afford to pay indefinitely. If you have to give it up
after five years, you have helped the insurance company, but not yourself.
4. Almost always, purchase a policy that covers home care as well as nursing home care
and which includes an inflation rider to cover increases in the cost of care.
5. If you cannot afford to purchase the full coverage you want, cut down on the length of
coverage rather than the daily benefit. For instance, if you would like a benefit of $200 a
day for four years, but cannot afford the premium, you are better off purchasing $200 a
day for two years rather than $100 a day for four years.
6. Always use a broker who has experience with long-term care insurance so that you
can benefit from his/her knowledge of the policy provisions and the companies selling
the policies.
By following these few rules, consumers can feel more assured that their long-term care
insurance will be there when they need it.
Under the DRA, the penalty period will commence on the later to occur of the first day
of the month in which the transfer was made or the date on which an individual is
eligible for Medicaid benefits and would otherwise be receiving institutional level of care
based on an approved application for such care but for the imposition of a penalty period.
Elder law attorneys are working with our nation's seniors on a daily basis. They are in
position to see the deficiencies of our federal benefit programs, to identify products that
fit specific needs and to work with families to meet the needs of their loved ones. Our
nation owes our elders the opportunity to live and die with dignity. Elder law attorneys
bring concern, care, and compassion to vulnerable individuals who are often in very
delicate and complicated situations.
ABOUT THE NATIONAL ACADEMY OF ELDER LAW ATTORNEYS
Established in 1987, the National Academy of Elder Law Attorneys (NAELA) was formed
to enhance the quality of legal services available to the elderly and people with special
needs in the United States. Members of NAELA are attorneys who have demonstrated
experience and training in working with the legal problems of aging Americans and
disabled individuals. http://www.naela.org.
ABOUT HARWELL, PLANT & WILLIAMS, ATTORNEYS.
Established in 1974, Harwell, Plant & Williams has a long history of service to client and
community. Our attorneys and professional staff offer a wide range of legal services to
citizens and businesses throughout southern Middle Tennessee. Paul Plant has been a
member of the National Academy of Elder Law Attorney's exchange ideas and other
information important to senior citizens. His active involvement in NAELA has offered
Mr. Plant quality assistance in his representation of the elderly and those with special
needs.
Contact us at 762-7528 in Lawrenceburg, 363-6500 in Pulaski, or Toll-Free 877/460-6467.
HARWELL, PLANT & WILLIAMS, 225 Mahr Avenue, Lawrenceburg, TN 38464
Plant@harwellplant.com www.harwellplant.com
National Academy of Elder Law Attorneys, Inc.
604 North Country Club Rd, Tucson, Arizona 85716-520/881-4005
Fax-520/325-7925