Tag: term

Term deposit account #term #deposit,high #rate,fixed #rate,interest #rate,savings,yorkshire #bank


Term deposit account

Making your savings grow

Decide how long you’d like to save – from three months to five years – then once your term deposit is opened, sit back and watch your money earn a guaranteed rate. Our term deposit account is ideal if you want to put away a lump sum – as long as you don’t want to make any withdrawals or additional deposits.

  • Guaranteed interest rates – up to 2.08% Gross*/2.00% AER +. This rate is available on the 5 year Term Deposit – Interest Capitalised at Maturity account.
  • Minimum deposit of £2,000 – Maximum deposit of £5,000,000.
  • Withdrawals or early closure are not permitted during the fixed term.
  • See interest rates tab for terms available, interest rates and how this is paid to you. Our summary box is a recap of our key product information
Withdrawals are not permitted

Please note withdrawals or early closure of the term deposit are not permitted under any circumstances during the fixed term except in the event of the death of the Account Holder (or one of them if joint account). See term deposit terms and conditions (PDF, opens in new window) clause 2.3 for further information, if there is anything that you don’t understand please contact us for clarification.

*Gross rate interest is the interest payable without taking account of any tax payable. From 6th April 2016 we no longer deduct tax from the interest earned on your savings, following the introduction of a Personal Savings Allowance. If you earn interest over your Personal Savings Allowance you will be required to pay any tax due yourself directly to HM Revenue and Customs. If you would like to read more about your Personal Savings Allowance, please visit the Government website www.gov.uk.

+ AER. Annual Equivalent Rate illustrates what the interest rate would be if interest was paid and compounded once each year.

For new Term Deposits – The rate in force on the day your Term Deposit is opened will be the rate applied to your new account for the fixed term.

For existing Term Deposits that are due to mature – The rate in force on the day your Term Deposit is reinvested will be the rate applied to your account for the fixed term. For more information on your options please refer to the letter sent out 35 days prior to your maturity date.

Interest capitalised and paid at maturity – interest will be credited to the account on the maturity date.

Apply in Branch

A Yorkshire Bank current or savings account must remain open in order for the monthly or annual interest to be paid in to.

The terms and rates offered for Term Deposits are constantly reviewed. As a result the length of the terms offered may vary.

*Gross rate interest is the interest payable without taking account of any tax payable. From 6th April 2016 we will no longer deduct tax from the interest earned on your savings, following the introduction of a Personal Savings Allowance. If you earn interest over your Personal Savings Allowance you will be required to pay any tax due yourself directly to HM Revenue and Customs. If you would like to read more about your Personal Savings Allowance, please visit the Government website www.gov.uk .

+ AER. Annual Equivalent Rate illustrates what the interest rate would be if interest was paid and compounded once each year.

How to apply

Use the online application process to complete and print an application form and fill it out with exception of the 3, 6 and 60 month term deposit. Send on to the following address – no postcode required – but please note that it is important to ensure the FREEPOST address is written on one line as:


Along with your application, you should send a cheque for the amount of your deposit. The cheque must be written from an account in the applicant’s name and made payable to the person named on the application form. For joint applications, you can send a separate cheque for each applicant if you wish.

When we receive your signed application, we will process it as quickly as possible.

  • After your cheque has cleared, we will open your account
  • Within 14 working days we will send you a certificate and covering letter confirming your new term deposit details
Apply by phone

Call 0800 587 5000 (Monday to Friday 8.00am – 8.00pm, Saturday 9.00am – 5.00pm, Sunday 10.00am – 4.00pm)

Apply at a branch

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California Long-Term Disability Insurance #long #term #disability #insurance #cost


California Long-Term Disability Insurance

Disability insurance can be a safety net for employees in California. When employees have non-work-related accidents that prevent them from working or earning a living, their earned income is protected. Disability insurance benefits include paid sick leave, short-term disability benefits, and long-term disability benefits.

Given the high number of Americans living with disabilities, getting disability insurance is a smart move for people who support themselves and their families through their jobs. Long-term disability (LTD) insurance in particular is extremely beneficial for employees who might experience a serious illness or injury. While California does have a short-term disability program that pays up to 55% of your wages for up to a year, California does not have a long-term disability program. Social Security disability and SSI disability, which are notoriously hard to qualify for, are the only other options for long-term disability benefits in California.

Long-term disabilities can continue anywhere from five years to the remainder of an individual s life. However, only 30% of American workers in private industry currently have access to employer-sponsored long-term disability insurance coverage through their employers.

Typical group long-term disability (LTD) benefits start when sick leave and short-term disability benefits are exhausted, and it replaces about 60% of one’s pay. In contrast, Social Security disability benefits are based on lifetime earnings, and the average monthly payment in 2013 is $1,100 per month (up to a maximum of $2,500 per month). SSI pays even less; the federal monthly payment for 2017 is $735 per month if you have no other income, plus California pays a small state supplementary payment to most SSI recipients.

Here are some important facts to understand if you are looking to insure and protect yourself against disability.

  • How to get LTD. Long-term disability insurance can be obtained either by a group or individually. Group coverage can be offered through an employer, professional group, or association.
  • Eligibility. For employees whose companies offer long-term disability coverage, the individual must work for a specified period of time known as a service wait. For professional or association-affiliated LTD coverage, the individual must be a member of the group for a set period of time.
  • Price of LTD. For individual LTD coverage, you will be responsible for the entire cost of insurance. In group LTD coverage, your employer may pay the full cost but you may have to pay percentage of the cost or a set premium.
  • Coverage. Long-term disability coverage can last from one year to the age of retirement usually 65. However, some plans differ; consult the summary plan description to verify the number of years covered by the insurance policy.
  • Medical costs. The LTD policy covers only wage replacement, not health coverage.
  • Pre-existing conditions. A pre-existing condition is any medical condition for which medical care was received three to six months prior to the coverage effective date. LTD plans may have a pre-existing conditions exclusionary period. During this period of time, an individual’s prior medical condition(s) will not be covered by the policy.
  • Partial benefits. Employees whose hours are reduced because of a disability may be eligible to receive partial benefits.
  • Other benefits. Getting LTD benefits does not preclude an employee from applying for other benefits program such as California’s State Disability Insurance (SDI) or Social Security Disability Insurance (SSDI). However, your LTD benefits are usually reduced by the monthly amount you receive in SDI or SSDI. Workers’ comp benefits are also “offset.”

Get the compensation you deserve.

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Allegro Escrow Services #note #servicing, #seller #finance #servicing, #loan #servicing, #long #term #escrow, #real


Note Servicing Made Simple

Allegro Escrow, A Division of Evergreen Note Servicing, was established in October, 1980 and is a loan servicing company focused on the needs of the private investor, portfolio holder and sub-servicer of seller-financed real estate payments, long term escrows, private notes, mortgages or rentals nationwide. Our state-of-the-art servicing software and unsurpassed industry experience make us unique in the industry. We strive to make servicing simple whether you call it note servicing, long term escrow, private loan servicing, real estate contract servicing, cashflow servicing, specialized loan servicing, land contract servicing or seller-financed loan servicing, it all comes down to the same thing. We take care of all the details for you, providing a complete account servicing solution.
Whether you are a real estate agent, private investor, note broker, attorney, accountant, or escrow/title company, we offer complete servicing to meet your all your needs. Evergreen Note Servicing is committed to offering our clients the most comprehensive suite of services available in the note servicing industry while complying with the complex industry regulations.
Signing up for an account with Allegro Escrow is easy, safe and secure. Let Allegro take care of all the details!

Allegro Escrow is an active participant in these associations:

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VESDA-E by Xtralis: The Next Generation of Aspirating Smoke Detection: Products: Xtralis #asd,aspirating #smoke


VESDA-E by Xtralis: The Next Generation of Aspirating Smoke Detection

For years, the VESDA range of Aspirating Smoke Detectors (ASD) has been recognized as the best in the world. New VESDA-E range, featuring VESDA Smoke+, offers dramatically increased sensitivity up to 15 times greater than previous models. VESDA Analytics allows for targeted detection of the most common fire threats, in particular WireTrace allows specific detection of burning wire at even higher sensitivities without nuisance alarms. Completely backwards-compatible and with VESDA Flex, field upgradeable, the new VESDA-E ASD system reduces the Total Cost of Ownership of the system

Protect your Investment

With up to 40% greater coverage in high airflow environments, the VESDA-E range of aspirating smoke detectors represent considerable CAPEX savings. Easier servicing and field replaceable architecture further reduce system OPEX. And of course, VESDA-E is completely compatible with existing VESDA systems.

VESDA Stax, a range of hardware expansion modules, add additional functionality to VESDA-E at or after installation, futureproofing your aspirating smoke detection investment. VESDA Stax include automated pipecleaning, power supplies, gas detection with many more in development:

  • Ultra-high sensitivity for greater coverage in high airflow environments
  • Inherent Absolute calibration = Calibration for life
  • Contamination resistance for lower TCO in wider range of applications
  • Particle classification to reject nuisance alarms enable targeted response
  • Detection of very small particles for earlier detection in a range of applications

  • Future-proof expandability field programmability for maximum flexibility
  • StaX Modules allow for hardware expansion without disrupting the aspirating smoke detector installation or pipe network
  • Integrated gas detection provides a superior solution at half the cost of competing solutions
  • Xapps available through the Xtralis Xchange allow for rapid remote field-programming of detectors with VESDA analytics
  • DieselTrace Analytics: Environmental Monitoring Reduction of Nuisance Alarms
  • WireTrace Analytics: Extremely early detection of electrical faults with instant alerts hours before adaptive-based ASD detectors
  • DustTrace Analytics: Dust Rejection. Dust Monitoring. Dust Alerts

  • Provides unprecedented situational awareness that drastically reduces verification time and delivers more efficient effective response without nuisance alarms
  • Addressability: VESDA Offer Different Addressability Solutions For Different Applications
  • Different Solutions to Pinpoint Location of Fire Incident results in quicker and more efficient response
  • ADPRO SmokeTrace : Visual verification of Smoke
  • Flexible networking programming options that reduce maintenance monitoring costs by up to 50% through extensive connectivity options remote diagnostics
  • Enables connectivity with Xtralis VSC, VSM4, Xtralis EMS as well as providing an embedded
    webserver and E-mail alerts
  • VESDA WiFi: Integration of wireless 802.11n enables connectivity with hand-held iOS and Android devices
  • VESDA USB: Easily connect to a PC for configuration and maintenance or USB flash drive for data collection
  • VESDAnet Relays: Connect up to 200 VESDA-E devices on a single loop

  • VESDA-E provides lifetime of value, reliability, protection with VESDA-E you can reduce Total Cost of Ownership by 15%!
  • Plug play installation provides improved installation experience reduced installation cost
  • Design-less pipe networks offer the fastest time to VESDA protection ever!
  • Vast monitoring options allow efficient integration to business process and emergency response plans
  • Backward compatible. easy upgrade while protecting your investment

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10 Best Long Term Care Insurance of 2017 #long #term #disability #insurance #carriers


10 Best Long Term Care Insurance of 2017

Long term care insurance is a flexible insurance product that helps cover people who need consistent care of an extended period of time. Long-term care can include nursing-home care, home-health, and personal or adult day-care for people over the age of 65, or who have a chronic or disabling condition that needs constant attention.

To qualify for benefits, you must be unable to perform two of these six day-to-day activities bathing, dressing, moving from bed to chair, using the toilet, eating, and maintaining continence and a medical pro must expect your disability to last at least 90 days.

Long term care insurance can protect your savings, preserve your independence, and help you maintain a better quality of life. Since long-term care can be very expensive, insurance is the best way to cover these costs without having to turn to liquidating other assets. Though it usually doesn t cover the full amount, it does reimburse a portion of the cost of a nursing home, assisted living facility, adult day-care, or in-home help.

When comparing long term care insurance plans, it s best to take each individual s particular circumstances into account. Apart from specific living arrangements, are additional personalized services necessary as well? These may include therapist, homemaker, and personal care services the latter of which can help with special assistance bathing or getting dressed.

Before choosing a long term care insurance plan, look at the fine print of the policy, including premiums, deductibles, benefit limits, and coverage specifics. Are post-mortem premium returns offered? What percentage of each service is covered? How do you submit a claim? Is it easy to cancel the policy?

Top 10 Companies

Customer Questions & Answers

What is Long Term Care Insurance?

Long Term Care Insurance is intended to cover the cost of long-term care services and support for people of all ages. This could mean daily living assistance within the home (like nurse or health aid visits) or in a facility (like assisted living, nursing homes and adult daycare centers). Long Term Care insurance will reimburse the policyholder based on a daily amount for care, for the predetermined amount of time as outlined in the policy.

When should I get Long Term Care Insurance?

If you are already receiving long-term care or have poor health, you may not qualify for insurance. Therefore, like with other types of insurance, you will want to get it before you need it. Though there are some exceptions. For example, if you are covered by a group policy, a medical screening may not be necessary to receive coverage.

If you begin looking for long term care insurance in your 40s and 50s, you’ll likely have a lower premium and the chances are better that you will not be denied coverage due to existing health concerns.

How is the cost of Long Term Care Insurance determined?

Like with other types of insurance, there is an underwriting process that will determine the cost of your long-term care insurance. This is based on a number of factors, including how old you are when you purchase the policy, the amount the policy pays per day, how long the policy will cover, any additional benefits you select, and more.

If you are married, think about getting covered together. Typically, long term care insurance providers offer discounts for couples, up to 40%!

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Instant Term Life Insurance Quotes #term #life #insurance,whole #life #insurance,universal #life #insurance,life #insurance,life #insurance


Instant Term Life Insurance Quotes Now

The Advantage One Insurance website helps you find the right insurance policies to best suit your needs. If you’re interested in getting a quote first read our brief introduction to the basics of life insurance below, then answer a few questions about yourself in the form in the right hand column, and we’ll instantly generate quotes from over 140 companies to find what’s best for you.

Term Life Insurance

If you’re looking for a basic life insurance package, or no medical exam life insurance. you’re probably after term life insurance. This covers the all the essentials and is also the cheapest type of life insurance.

You pay a fixed rate over a specific amount of time (or term – for example 10 years, 15, 20 year term. or 30 year term) and the insurance company pays out a lump sum if you die within that time. These policies insure your life, but do not provide any additional form of investment.

If you want to increase the certainty of a payout, perhaps a form of permanent life insurance is best for you. These schemes do not expire (provided you keep up with payments) and they also build you a pot of savings. There are two popular types of permanent life insurance:

Whole Life Insurance

You’ll get a guaranteed payout on your death, as long as you continue to make your payments, so these plans are sometimes known as ‘whole of life insurance’. In addition, your payments also build an investment fund (a cash value) which can be withdrawn or borrowed against. This cash value remains tax-deferred until you take advantage of it.

As your beneficiaries are certain to get an insurance payout and you will be creating an investment fund, whole life policies are usually more expensive than term life insurance.

Universal Life Insurance

Universal life insurance is a permanent life insurance with added flexibility. As with whole life, it also invests a part of your premium in a tax-deferred, interest accumulating savings account, but additionally it allows you to use the interest from this to pay your monthly premiums. The policy will cover your whole life too, not just a fixed term.

You can review the allocation of your payments into the death benefit and into the savings pot at any time, and can also move money between the two. All this flexibility means universal life insurance is better for those who are looking for a longer term plan, because your premium will start high and it will take time for the investment to start paying for itself.

We hope this overview of life insurance helps making the right choice even easier.

Term Life Insurance Quotes

Advantage One Insurance helps you find cheap life insurance rates and premiums possible

Our Insurance Advisors will assist you in determining your appropriate health class

And custom tailor an affordable life insurance plan to best suit your personal needs.

We provide exceptional customer service by phone or email. And pride ourselves on having the latest technology available.

Making this process as quick and easy for you as possible. With our online applications you will receive the prompt delivery and begin protecting your loved

ones right away.

Advantage One Insurance

Has been helping families protect their loved ones since 1984. Let us share with you our knowledge and experience from being in the life insurance industry for over 25 years. We pride ourselves on educating our customers to assist them in making the right decision for their unique situation. We write all major life insurance companies in the US, that offer competitive rates, such as Banner Life Insurance, American General, Prudential. Genworth, MetLife, Ohio National and more.

Copyright 2017 Advantage One Insurance, All Rights Reserved
1022 Colonial Drive, Bensalem, PA 19020

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Term Life Insurance – State Farm #term #life #insurance,affordable #term #life #insurance,term #life #insurance


Get Affordable Protection Term Life Insurance

How it works

Term life insurance is the most straightforward form of protection. You generally pay premiums on a monthly or annual basis and your family is protected at an affordable price for a set amount of time – 10, 20, 30 or 65 years. We offer a variety of affordable term life insurance products to fit your needs, time frame and budget.

  • Help provide for a family’s loss of income.
  • Cover short-term debts and needs.
  • Provide additional insurance protection during the child-raising years.
  • Provide longer term protection to help your family pay off a mortgage or to help pay for post-secondary education.

Find an Agent

Term Life Insurance Policies

Sample rates are for a 25-year-old female in good health. Get a quote to see personal pricing.

Need help choosing a policy? Compare policies .

Life Term 10, 20, 30 or Life Term to 65 Insurance

Life Term 10, 20, 30 or 65 years of coverage and a guaranteed benefit. Coverage starts at $25,000. Premiums are affordable and level for the initial policy term. At the end of that period, Term 10 or 20 is renewed automatically for a similar term. The new premium stays level for the entire new term.

Life Term to 65 Min $25,000 (non renewable)

Mortgage Life Insurance Solutions

Term insurance provides a flexible and cost effective way to own life insurance for a fixed period of time to cover a mortgage. Available in 10, 20 and 30 year periods, term coverages can be combined to protect the full amortization schedule of your mortgage while enabling you to save up to 10% with our Multi-Coverage Discount.

Many options are available to accommodate your changing needs:

– Re-assess your life insurance as your mortgage decreases

– Convert it to a permanent policy to cover final expenses in case of death or leave a tax-free benefit for your loved ones.

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Term Life Insurance #no #medical #life, #no #medical #life #insurance, #no #medical #exam #life


Buying Term Life Insurance with No Medical Exam

Buying term life insurance with no medical exam is an attractive option for people who don’t want to go through the time-consuming hassle of getting checked out by an unfamiliar health care professional. (Most insurance companies do not accept a medical exam from your primary physician.)

Others seek out term life insurance without a medical exam requirement because they know they’re not in the best of health and may end up paying a higher rate as a consequence of the medical report. But this route isn’t for everybody and will even limit your life insurance options.

So, with this in mind, here’s what you need to know about buying term life insurance with no medical exam and whether it’s right for you.

How to qualify for term life insurance with no medical exam

First, you need to know that if you buy term life insurance without a medical exam –commonly known as guaranteed issue life insurance –you will have limits on the death benefit offered in the policy.

Many companies put a $100,000 or $250,000 cap on life insurance policies issued without a medical exam. Moreover, the shorter the term of your life insurance policy, the better the odds that can get away without taking one of these exams.

Needless to say, insurance companies don’t really care much about your risk of getting lung cancer when you’re 55, if your term life insurance policy expires when you’re 45.

Term life insurance: No medical exam

Buying term life insurance with no medical exam can sound like a great idea, but if you’re not careful it can easily backfire. Many insurance companies will offer life insurance policies without a medical exam if you at least fill out a medical history form.

If your family has a history of heart disease, but you’ve done cardio-exercises religiously for ten years, a medical history will raise red flags that a healthy medical exam report might mitigate somewhat. Likewise, many people who seek life insurance policies without a medical exam, know that they’re not in the best of health, and insurance companies aren’t exactly ignorant of the trend, either.

By forgoing a medical exam as a healthy adult, you could be costing yourself a good chunk of money with higher premium rates.

Term life insurance: No health questions

Some insurance companies truly take the hassle out of buying term life insurance by allowing you to skip the medical exam and asking no health questions. Other companies dispatch with a formal medical history but still ask a few basic questions, such as any pre-existing major illnesses and relatives with a history of cancer or heart disease.

Even these questions will only a minimal effect on your rates, given low benefit coverage and a short term length. Beware, however, that there are potential drawbacks to opting out of either the medical exam or a more detailed medical history. Once your term life insurance policy expires, you may not be able to renew the policy if a major medical condition has presented itself in the meantime.

To avoid this problem, you can choose a term life insurance with an automatic renewal option, but these policies usually require a medical exam.

Advice for life insurance medical exams

First, if you don’t have any spare time, it’s worth noting that most insurance companies are willing to send their paramedics to your home to conduct the medical exam. That said, if you decide it’s best to go ahead and take the medical exam, there are several things you can and should do to get the best results possible.

Focus on eating a healthy diet the week before the exam, paying particular attention to eliminate salt and fatty foods. Three days ahead of the exam, cut out alcoholic beverages and nonessential medications that can elevate liver enzymes.

The day before, completely eliminate stimulants as the will elevate blood pressure.

And, as counterintuitive as it seems, refrain from strenuous activities the day before the exam to avoid elevating proteins in the urine. This may sound like cheating to some, but you better believe your life insurance company will peruse the medical report to identify any areas of elevated risk that you present. Every little bit helps.

Finding online quotes for term life insurance

No matter what choice you make or policy you need, finding quotes for term life insurance is the easy part. Simply fill out a brief online form, and we’ll start matching you with the insurance companies in your area that best fit your insurance needs.

Buying term life insurance is a hassle in the best of circumstances, and, at NetQuote. we try to minimize this hassle by affording you the opportunity to review reliable quotes from several different companies from the comfort of your own home.

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Term Life Insurance, Term Life Insurance Quotes, BudgetLife, whole term insurance.#Whole #term #insurance


Life Insurance Quotes

Save Real Money

Term Life Insurance

In summary, do some product research first, using a service like Budget Life, and then get an American life insurance quote online. (For Canada life insurance, get a Canadian quote.) Then select a life insurance agent based on criteria such as trust, experience, and access to a wide selection of policies. Your goal should be to find, and then stick with, an agent who can help you find the best life insurance rates that fit your specific needs.

A whole life insurance quote is for your whole life, as opposed to term life insurance, which is for a specific term, such as twenty or thirty years. That is the primary benefit of whole life: a payout is guaranteed. You will not have to worry about becoming uninsurable later in life, and unable to obtain life insurance of any kind.

Term or Whole Life Insurance?

Term life insurance, also called temporary insurance, covers a person against death for a limited time, the term. For example, the term might be until children are grown, or until college is paid for, or until retirement. You pay for the policy period and at the end of the term, the contract or policy expires. If no claims are made against the policy during the term, you don’t receive any benefits after the policy expires, just like auto or homeowners insurance.

Whole life insurance, also called permanent insurance, is permanent and does not expire (assuming you continue to pay the premiums). It provides coverage similar to term life insurance, but it also provides an investment vehicle. A portion of the premium goes for life insurance, while the rest goes into an investment account. This account can be an interest bearing account or a variable (stocks and bonds) investment account.

Which is better (our opinion)? A young family with large financial obligations is usually better off with a term life insurance policy. The substantially lower premiums enable them to purchase sufficient coverage to protect against loss of income. Any discretionary investment funds can be placed in other vehicles (mutual funds, money market accounts, etc.) that are likely to generate returns similar to or better than a life insurance policy. Whole life insurance is often purchased by people for tax and estate planning purposes. Recently, some advisors have started recommending life insurance as an investment. You should consult with your financial advisor.

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Why it – s so important to buy long-term care insurance, PolicyGenius, why buy


Why it s so important to buy long-term care insurance

Why buy long term care insurance

I first learned that long-term care insurance was a thing when my grandfather needed to be moved to a full time care facility. He’d lived on his own for years after my grandmother passed, but independence became impossible to sustain as he aged.

The long-term care (LTC) facilities my mom and her siblings looked into were more than $6,000 a month.

It’s estimated that about 68% of us turning age 65 will need some form of LTC during our lifetime. As Baby Boomers age, the number of elderly in need of long-term care is expected to double to 27 million by 2050. DON’T STOP READING this because you find that statistic depressing.

Yes, it’s unpleasant to think of a day that our parents might require help. It’s more unpleasant to imagine not being able to pay for the help they need.

Long-term care is not as scary as it sounds. Your parents can live many happy years with LTC at home (still telling you what to do with your life), at day centers, or in assisted living facilities.

THAT is why we have to talk to our parents about their LTC options now.

Long-term care is (1) expensive and (2) misunderstood:

1. According to a study by the insurer Genworth, the average cost of a semi-private room in an LTC nursing facility is $82,125 per year ($6,843 a month doesn’t even buy you a private room). The average cost for a home health aide is $46, 332 per year. (Go here to find the average costs in your state.)

2. LTC is NOT covered by health insurance or Medicare.

Health insurance, Medicare, and Medigap insurance (insurance which covers the co-pays and deductibles of Medicare) do not cover the largest part of long-term care. And long-term disability insurance (which in most instances you can’t get over age 65) covers lost wages, not medical bills.

If your parents (or you someday) find they need LTC–which can include physical therapy, skilled nursing care, assistance bathing, eating, taking medications, etc.–they will either need to:

have few assets so that they qualify for Medicaid;

have many assets so they can pay for their own long-term care out of pocket;

have long-term care insurance (LTCI); or

none of the above, and it will fall on their children to pay for their care.

I have several friends who are financially responsible for at least one parent’s long-term care. For all of them, it has been difficult. For some of them, it has been financially devastating, because in Los Angeles LTC nursing facilities can cost upwards of $10,000 a month.

As it turned out, my grandmother had taken out an LTC policy for her and my grandfather. My mom didn’t even know what long-term care insurance was until she found out that her mom had a policy that would cover most of the costs of my grandfather’s care.

Here are some facts about long-term care insurance:

What is long-term care insurance?

LTC insurance policies vary but most reimburse the holder up to a daily maximum amount (the average in 2007 was $160 per day, or about $4,800 each month) for home health care–skilled nursing, personal care and custodial care (supervision)–or care in a nursing facility, Alzheimer’s facility, adult day care facility, or assisted living facility. They also cover hospice (as does Medicare when life expectancy is short) and respite care.

Respite care is huge if you are a caregiver. It provides temporary relief of your caregiving duties, usually via a short stay for your loved one in a nursing facility, so that you can get a break.

When should you or a parent purchase an LTC policy?

The average age of people buying personal policies is 60 and the average age of people buying policies through work is 50.

The younger you are, the less expensive the premium, but obviously you’ll likely be paying it over a longer period of time.

Who qualifies for LTC insurance?

Like the majority of life insurance policies, most LTC policies require medical underwriting. In other words, you have to prove that you are in relatively good health.

Pre-existing conditions or an existing need for long-term care might disqualify you or raise your premiums.

How much does LTC insurance cost? Is it worth the cost?

Long-term care insurance is not cheap–in 2007 the average was $2,207 annually. The premiums are based on your age, the coverage and benefits you choose, and the policy’s limits.

According to this Forbes article, LTCI policies pay less on the dollar than life insurance, especially for men. In fact, financial experts disagree on whether LTCI policies are the best use of your money. The answer depends on your financial situation:

Would you qualify for Medicaid (in most states your income must be under $3,000 monthly)?

Do you have enough assets to cover long-term care costs out of pocket?

Do you mind using up those assets or would you prefer to leave them for your children?

Or, do you have enough money to use some assets for your care and still leave something to your kids? (If so, you should really be blogging about how you made that happen.)

What do Medicare and Medicaid cover?

Briefly, Medicare covers short-term recoveries. For example, it covers 100 days in a skilled nursing facility following a related hospital stay, but only the first 20 days are covered fully.

It covers activities of daily living (ADLs) like bathing and dressing, but only in conjunction with medically necessary care.

And it covers medically necessary durable medical equipment such as wheelchairs and hospital beds, but patients are usually responsible for 20% of the cost.

I can tell you from experience, Medicare is very specific about what equipment they will allow. They covered a wheelchair for my father who has mobility issues due to an illness, but Medicare won’t cover an electric scooter for him. Their reason for denying the claim is that my dad retains the ability to push his own wheelchair with his arms…so, never mind that he can’t use his legs.

Medicare also covers hospice care (end of life care) when life expectancy is under six months.

Medicaid programs vary by state; however, if you qualify, it usually covers long-term medical care in a nursing facility or at home but it does not cover custodial care.

Here’s a comparison of what is covered by Medicare, Medigap and private insurance.

What do I need to know when selecting an LTC policy aside from what benefits are covered?

Make sure you know the policy’s limits – both the maximum daily amount the policy will cover and how many years the policy will last.

LTC policies often have time deductibles (usually 90 days). That means the policy won’t start to cover your costs until you have needed the care beyond a certain number of days (e.g. you’ll start to be reimbursed on the 91st day of your stay in a nursing care facility).

With some LTC policies, premiums can increase over time, so be sure you ask about this possibility before you commit to a policy.

Where can I buy LTC insurance?

If you have a trusted financial advisor or insurance broker, start there. If you are a member of USAA (for military veterans and families), my parents are happy with the LTCI provider they found through them.

Otherwise, you can try LTC Consumer, which PolicyGenius has partnered with because of their unbiased advice and great customer support. Their free LTCI quote tool will give you a good idea of what you can expect.

There are a whole lot us who make too much to qualify for Medicaid but who don’t make enough to cover long-term care. If you look at some of the statistics –like the average cost of an LTC nursing facility being over $6,500 per month–and consider that most of that cost is not covered by Medicare or other health insurance, I believe there is a very compelling argument that most of us should consider long-term care insurance.

My grandmother was still caring for her husband and giving her kids financial freedom long after she was gone from this world. The long-term care policy she took out was a big gift to her family.

My parents are determined to give the same gift to my sisters and me. My husband and I will give the same gift to our kids.

And then hope that none of us ever needs to use it.

Julie is a producer of blogs, films and children in Los Angeles.

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