Do I need LTC

The Importanace of Long Term Care In Retirement Planning

The Importance of Long Term Care In Retirement Planning

People planning for retirement typically know where they’ll get the money to pay for living expenses and many of the extra things they want to so. But all too often, they fail to plan for long term care expenses. And that can be a costly mistake.

Long term care services are expensive. Based on Mutual of Omaha’s Cost-of-Care Survey, the nationals average cost for one year of nursing home care in a semi-private room is $86,662.00. And that’s just for one person. If both husband and wife need long term care services, a retirement nest egg can be depleted quickly.

So how do people plan to pay for the care they need? Some mistakenly believe their health insurance will cover their long term care expenses. Others plan to let the government take care of them. In reality, health insurance doesn’t cover long term care. And the coverage provided by government programs is limited. For example, Medicare provides some short term coverage simply to help people get back on their feet after an accident or illness. And while Medicaid does pay for long term care services (typically nursing home care), it only pays for people who have no other resources. And for many people, that means spending down assets to qualify.

That leaves two alternatives: Pay for long term care services using retirement assets or protect retirement savings with a long term care insurance policy.

Planning to pay the cost of long term care services out of pocket may seem reasonable. But many people fail to think about the real cost associated with that plan. First, assets may have to be liquidated, which could mean cashing in stocks, selling property or dipping into 401(k) or savings accounts. In addition, liquidating assets may trigger additional costs in the form of capital gains tax, income tax and potential surrender charges. It also has the potential to deplete the inheritance planned for family members.

Purchasing a long term care insurance policy may be the best way to help peole make their retirement assets last as long as possible. For a fraction of the cost they would pay to a nursing home, assisted facility or home health care provider, they can purchase a policy to help pay those bills while protecting a significant portion of their retirement fund.

With all the retirement planning options available, it’s important to remember one thing…people need enough retirement income to cover their expenses. And putting a plan in place to pay for long term care expenses using a long term care insurance policy can be a smart way to make retirement income last longer.

Abe Glickman, LTCA, LTCP
Abe Glickman Insurance Group
Toll-Free Phone: 877-298-5824

“It is better to create a plan 10 years too soon than one day too late.”

Questions or Comments? Give me a call!

5 Reasons You Should Consider Long Term Care Insurance For You And Your Family

5 Reasons You Should Consider Long-Term Care Insurance for You and Your Family

Professionals who study risk management say that individuals have several choices when dealing with risk. The choices include: 1) Avoiding Risk; 2) Retaining the Risk; or 3) Transferring the Risk

When it comes to the issue of Long-Term Care, people may avoid the risk because they don’t understand the potential for needing services. They may choose to retain the risk because they don’t understand the potentially high cost of care. Or they may transfer the risk as part of a carefully considered retirement and financial plan. Each person’s decision-making process is driven by different concerns and priorities. Here are reasons you should consider transferring the risk of a Long-Term Care experience through the purchase of Long-Term Care Insurance.

Protecting Your Assets
In the absence of other resources such as insurance, it may be necessary to pay for Long-Term Care expenses out of pocket. This could involve selling off assets, borrowing from an investment or retirement account, or even taking a loan against your life insurance. These options, although possible, are probably not what you had in mind when you purchased life insurance or began saving for your future. Long-Term Care Insurance may be an affordable way to help protect a much larger portion of your financial and retirement plan against an unexpected need for care.

Having Your Own Way
A bottom-line issue in Long-Term Care is control. If you someday need Long-Term Care Services, you may find that you are not in a position to control how the funding of those costs is to be handled. Would you object if your family decided to liquidate some assets or sell something you value, such as a cherished collection, antiques, or vacation home? If you were to become incapacitated, you might not have a say in the matter.

By insuring part of the risk you increase the possibility that your assets will be handled and distributed according to your wishes.

Another important element of control is deciding where care will be provided. Long-Term Care Services may be provided in any number of setting including your home, an assisted care living facility, adult day care, or nursing facility. Being able to decide where you wish to receive care often tied to your financial resources at the time of need.

Risk Management Logic
Most people have homeowners and auto insurance, but if you scratched the paint on your car or a neighborhood kid threw a baseball through your window, you might pay those expenses without filing a claim because the cost is manageable. You have the insurance anyways, though, because you believe it’s just a good idea. If something major happened to your car or your home, you would be protected.

The need for Long-Term Care Services may have a much bigger effect on your finances than a scratched car or a broken window. Long-Term Care Insurance is a lot like your homeowner’s or auto coverage – you hope you never need to use it, but if you do, you will be glad the protection is there.

Quality of Care
The Privilege of Choosing Your Caregiver
Most people agree that the preferred place to receive quality care is the privacy and comfort of your home. However, depending on the type of care you receive, home car may be just as expensive as care received in a facility. By insuring for Long-Term Care Risk, you may be assured that care expenses will be less of a concern when receiving the best home care available. Having additional resources that care expenses will be less of a concern when receiving the best home care available. Having additional resource to pay for home care may also make the difference between staying at home and having to relocate to a care facility. Should institutional care better fit your needs, you may have funds on hand to pay for the facility you prefer, rather than one you afford.

Family Consideration
Stressful Decisions
An unexpected need for Long-Term care Services may create stress for family members confronted with issues of care giving. Caregiving may take a physical toll on family members who may have to help bathing, dressing, and other tasks associated with custodial care. It can also have a financial impact on family caregivers who have to miss time from work, change from full-time to part-time employment, or even leave their job completely. Finally, caregiving may have an emotional impact on family members having to take care of Mom and/or dad – Someone whom they have always seen as strong and in control. Physical and mental illness sometimes brings an unexpected role-reversal to the parent-child relationship.

An option worth considering…Long-Term Care Insurance helps with these considerations by providing benefits and resources to help you and your family understand the options and determine the best source of care. Long-Term Care Insurance provides options that you and your family may not know about or may not otherwise have the money to consider.

Abe Glickman, LTCA, LTCP
Abe Glickman Insurance Group
Toll-Free Phone: 877-298-5824

“It is better to create a plan 10 years too soon than one day too late.”

Questions or Comments? Give me a call!

Not Having A Plan Is Planning For Faliure

Not Having A Plan Is Planning For Failure

1. Planning for Long Term Care Is Important  Most people will tell you they plan to live a long life. But with aging comes the need for help with some of the things they always did for themselves. According to the U.S. Department of Health and Human Services, 70% of people who reach age 65 will need Long Term care services at some point in their lives.
2. Long Term Care Services Are Expensive  Mutual of Omaha’s cost-of-care survey revealed that just one year in a nursing home can cost more than $96,000 (based on national averages). Home Health Care is less expensive, but people still can expect to pay as much as $56,000-$70,000 per year for care they received in their own home.
3. You Can’t Rely On Health Insurance or Medicare  Many people mistakenly believe their Long Term care needs are already covered. In reality, health insurance doesn’t cover Long Term Care services. And Medicare only covers services for a short time – typically just long enough to help people get back on their feet after an illness or injury.
4. Medicaid Isn’t For Everyone  It’s true. Medicaid doesn’t cover Long Term care services. But it’s important to remember that Medicaid is a program for people with low incomes and limited resources. That may mean you would have to spend down your assets just to qualify. Not an attractive option for people who want to protect the assets they have worked a lifetime to accumulate and leave a legacy for their children.
5. There’s A Hidden Cost To Family Caregivers  It’s easy to say, “My family will take care of me.” But a spouse may not be physically able to provide all the care that’s needed. And children have their own family and career obligations. The fact is family caregivers frequently suffer from stress and illness themselves. Not to mention lost wages if they have to give up a job or reduce their work hours.
6. The Best Time To Start Planning Is Now  How will you pay for the care you need? Where will you live? Who will take care of you? These are questions people need to ask themselves now while they’re young and in good health. The need for Long Term care services can arise at any time. Having a plan in place when that day comes can help alleviate the emotional strain many families face. It also can help ensure you get to make the important decisions about the care you receive and the setting you prefer.
7. The Cost Of Waiting Can Be High  The ability to obtain a Long Term Care Insurance policy is based on age and good health. So it’s important for you to understand that if something happens to cause a change in health status, you may not be able to purchase Long Term care Insurance at any price.
8. Some Coverage Is Better Than None  Many people who think they can’t afford a Long Term care Insurance policy neglect to consider what would happen if they didn’t have one. Without a policy to help pay the bills for Long Term Care services, you may have to liquidate assets, sell stocks, dip into savings or retirement accounts or sell property to come up with the cash you need. Even a modest Long Term care Insurance policy offers some protection for your important assets.

Abe Glickman, LTCA, LTCP
Abe Glickman Insurance Group
Toll-Free Phone: 877-298-5824

“It is better to create a plan 10 years too soon than one day too late.”

Questions or Comments? Give me a call!

How Abou You

How About You?

Today I would like to share a story that was told to me a short time ago by two close friends, Ethel and Gloria that was quite upsetting.

This is what Gloria shared with me:

“Recently my neighbor and good friend Ethel got sick. I was worried about when she came home from the hospital how she would take care of herself. When I visited her before her coming home we discussed this issue she said, “Don’t worry, I bought a Long-Term Care Policy years ago.” What a relief we both thought.

When Ethel came home she hired a Home Health Care agency to assist her…and as Paul Harvey used to say – Here is the rest of the story…

When she got home from the hospital, she got out her Long-Term Care policy to give the agency her information. As she was reading her schedule page of benefits she noticed an elimination period, benefit amount, as well as a section called eligibility of benefits. Needless to say she did not have a clue as to what all of that meant.

What she found out was she had an elimination period (deductable). A number of days that she would have to pay before the insurance policy would begin paying. Also there has to be documentation from her Doctor and the Home Health Care agency as to the Activities of Daily Living assistance needed. She could not determine whether her aide could go grocery shopping and then drive her to her doctors appointment. How many hours is she entitled to.

As the paperwork started to come in the mail from the insurance company she was overwhelmed. Does she have to pay the agency and then file to the insurance company to get reimbursed. So many questions …No one to help.

I said to myself, I have a Long-Term care policy I bought years ago. It has been in my file cabinet since I purchased it, I have not looked at it in years. I have no idea where the agent is who sold me the policy. I have not heard from him since I go the policy. What will I do when I need to use my policy?”

This situation is unfortunately too common. So many people did the right thing years ago and bought Long-Term Care policies to protect themselves. However those professionals (they claimed to be) the agents that sold these policies are no where to be found. So just like these two friends, they are at the mercy of the insurance company. I said this before, you must have an advocate to assist at your time of need.

The good news, both of these lovely ladies, Ethel and Gloria have me as their advocate and will never have to worry about any future issues regarding their policies.

How about all of you?

You bought a Long-Term Care policy, (which was the right thing to do), have you looked at it? When is the last time you took it out and had a review? Is your agent still around to assist you? Do you understand your benefits? Are there any Restrictions?

When you get ill is not the time to start to educate yourself.

Let me be your advocate.

Abe Glickman, LTCA, LTCP
Abe Glickman Insurance Group
Toll-Free Phone: 877-298-5824

“It is better to create a plan 10 years too soon than one day too late.”

Questions or Comments? Give me a call!

How Will I Know The Long-Term Care Insurance Is Right For Me?

How Will I Know That Long-Term Care Insurance Is Right For Me?

Everyone age 50 or older is a prime candidate for Long-Term Care Insurance. The Earlier you take out a policy, the better. In most cases, you will almost certainly pay less in premiums over the life of the policy than if you ever need even one year in a nursing facility. It is by planning NOW that you can secure your future at a lower cost!

If you recognize that you are not superman or superwoman, and that there is a reasonably good chance that you will need someone to help take care of you before you die, you should be looking at Long-Term Care Insurance. If you plan ahead, own your own home, and have some savings and investments to protect, then you should be a step beyond look, because there is probably a Long-Term Care plan available that you could afford without affecting your present lifestyle. When all is said and done, in order for you to take out and keep a Long-Term Care Insurance policy, you must be more comfortable doing without the money you pay for premiums than you would be if you kept the money and remained self-insured. Long-Term Care Insurance should give you security and peace-of-mind. Most of my clients have concluded that saving a lot more money in their retirement years is not the objective anymore; however, protecting what they do have so they won’t lose it all before they die is a major objective.

Long-Term Care Is The Biggest Reason For Financial Failure Among Seniors Today!
In fact, over 70% of Americans believe they will not be able to cover their Long-Term Care expenses!

Most of us would jeopardize our life savings if we did without Long-Term Care Insurance. However, I have clients who truly could self-insure if they wanted to, and perhaps my experience with them will clarify the logic of taking out this coverage: if people who are so wealthy sees the benefits of coverage, what does that say to those of us who are not as fortunate financially?

I have one client in particular in mind. This client has many investments and is a very wealthy man. He could obviously afford to do without Long-Term Care Insurance, and when I met him, I advised him he did not really need this type of protection. He told me something I will never forget: He said, “It is true that I could do without Long-Term Care Insurance; in fact, I could build my own nursing home! But, do you know what it would cost if my wife and I had to enter a nursing home at the same time 15 years from now?” I replied that I had a pretty good idea based on today’s trends, adding that the cost could be as high as $160,000 per year. He then continued, “I know that it would be somewhat unusual for us both to end up in a nursing home at the same time, but would you also agree that is would a little unusual for a person to stay in a nursing home over 13 years?” I agreed that would be somewhat unusual since the majority of people for not spend over 5 years in such care. He continued his story: “Yes, it is unusual, but my mother-in-law has been in a nursing home for that long, and I am still paying the bill! It doesn’t appear that she is near death, so she may stay several more years. The cost of this care has already exceeded $500,000. Even though I could take my chances, I don’t think it makes sense for my wife and I to take that kind of risk, just to save a few thousand dollars a years in premiums. Can you provide me with a plan that would alleviate this risk?”

Abe Glickman, LTCA, LTCP
Abe Glickman Insurance Group
Toll-Free Phone: 877-298-5824

“It is better to create a plan 10 years too soon than one day too late.”

Questions or Comments? Give me a call!

Do You Have Long Term Care Insurance?

Do You Have Long Term Care Insurance?

Claudia, 50
I don’t have Long Term Care Insurance yet, but I really need to get it. I’ve known people who have had to live in nursing homes and I’ve seen what the costs are. If you don’t have insurance, who’s going to pay the bill? Hopefully you just wake up dead, but if not, someone has to pay the price. I’m not going to sell everything I have to maintain my dignity, and why would I knowingly pass that expense on to my kids? I really believe in the coverage but I just haven’t bought it yet because it takes time to research the different policies. I don’t want to make a mistake and buy the first thing I see. I want to make sure I get the best policy for my money.

Jack, 63
Delray Beach
I do have Long Term care Insurance. We decided to purchase the policy when I was 58 years old because my wife is 11 years younger than I am and so chances are I’ll require care before she does. We don’t want to deplete our other estate funds to pay for my care, so we thought the coverage would be a value. My wife doesn’t currently have Long Term Care coverage because she’s only 52, but we might want to consider that eventually. She’ll most likely survive me and we feel that if she were to become ill, we could cover those expenses. I feel that there’s more of a need for me to protect her and to preserve the estate for the 35 or so years she has left.

Rosemary, 59
Boca Raton
I do have Long Term Care Insurance. My daughter got the policy for me and she pays for the premiums. To quote an old saying, “It’s better to have it and not need it than to need it and not have it.” When my husband was sick, we had a lady care for him, but that wasn’t covered so we had to pay for it. That can deplete your savings fast because those services are very expensive. I really don’t want to be a burden to my family. If my daughter didn’t pay for the coverage, I would because if I needed daily care, how could I expect my family members to provide it? They have their own lives, and besides, professionals are trained and could probably help me more.

Victor, 80
Pembroke Pines
About 15 years ago, I decided to get Long Term Care Insurance for my wife, but to my shock, I found out that she didn’t qualify because she used a walker. I investigated different companies and policies, but the response was always the same. At the time, I didn’t think about covering myself, but I knew I had to save money to take care of both of us because the expenses are rather large. I did it by investing in the stock market and I set that money aside. As I got older, I considered getting the coverage for myself because I firmly believe in it. Since then, we have had home health care for my wife and she’s also been in an assisted living facility where she gets 24-hour care and that costs $7,000 a month. If something happens to me, I’ll probably use that facility too…if there is any money left.

Abe Glickman, LTCA, LTCP
Abe Glickman Insurance Group
Toll-Free Phone: 877-298-5824

“It is better to create a plan 10 years too soon than one day too late.”

Questions or Comments? Give me a call!

Minimize The Impact

Minimize The Impact

A Care Event in Your Family Can be a Challenge, But You Can Lessen Its Impact

The impact of Long Term Care events on Families is well documented. We have learned through our assessment that there are other financial and emotional costs that may not be as readily apparent. Specifically, there are cost to the long term care recipient, caregivers and extended family.

All of the people we discussed previously in the Circle of Care may experience an impact on:

• Stress levels from demands on time and serving the needs of others
• Job and careers
• Relationships with spouses, siblings, children, step-families and in-laws
• Their incomes and finances

Perception and Reality

With medical advances and healthier lifestyles, people are living longer these days – often 20 or even 30 years into retirement. As we’re doing a better job at living longer, the likelihood of needing care, companionship or help later in life is greater than ever.

Consider the Statistics Around the Potential Need for Long Term Care

Nearly two-thirds of Americans over age 65 will need long term care at home, through adult day health care, or in an assisted living facility or nursing home.*
* AARP Public Policy Institute “Long Term Care Trends”

The Double Whammy

For younger couples with two sets of parents, the chances of being affected by a long term care event are high if any of their parents lack the financial resources for their own care. And if care for one parents significantly impacted a couples’ finances, would they be able to contribute to the care needed for the other parents?

Survey Reveals Top Concerns

A January 2010 Age Wave/Harris Interactive survey sponsored by the Genworth Financial companies revealed that “medical expenses not covered by insurance” is the top concern of people age 55 and older.

More then half of all respondents (55%) reported that their greatest fear regarding a long term care illness or event was being a burden on their family. In fact, they reported being five times more concerned about being a burden than dying.

Although the issue us a top concern, many are still not engaging in open conversations about potential long term care expenses, the costs or the types of care they would prefer or may need in the future. More than 90% surveyed have not talked about critical long term care issues with their spouse/partner, aging parents or adult children.

The First Step in Planning is to Talk to Your Family

Figuring out how to address a long term care need is stressful, but having a direction before there’s a need can help immensely. Having no plan can be overwhelming. When people have to make emotional and financial decisions unexpectedly, judgment and decisions can be less than optimal. And not having the conversation means you don’t have direction from the person needing care. People can find themselves writing on-the –spot checks for care. Spending money for care on a moment’s notice is something no one wants to do, and the quality of those decisions may be compromised.

The broad impact – to finances, emotions, jobs and careers, immediate and extended families – adds urgency to the need for these important conversations – before the need for care arises.

Abe Glickman, LTCA, LTCP
Abe Glickman Insurance Group
Toll-Free Phone: 877-298-5824

“It is better to create a plan 10 years too soon than one day too late.”

Questions or Comments? Give me a call!

Don’t Have Long Term Care…Uh-Oh

Don’t Have Long-Term Care

None of us need another bill to pay, but not having this protection could and will destroy your finances long before you’re old and will eliminate your legacy to your children and grandchildren.

Many people are counting on the government, our children or our own savings to take care of us. Thinking about nursing homes is enough to make us sick. Some of us think we are too young to think about this issue.

Not having a Long-Term Care Insurance policy can be one of the most expensive mistakes you will ever make.

Medicare pays for medical expenses. It does not pay for custodial care, the day-to-day
care people need due to age, illness or accidents.

Medicaid is Welfare. You probably do not depend on it now and you wouldn’t want to depend on it later. You have to be impoverished or make yourself that way. And you would have no choice in whom or where care would be provided.

I have an idea…take a tour of all Medicaid facilities that accept new Medicaid patients before you decide to be at the mercy of the state.

Where is your help?

The Kids – You might assume that could work (check with them first). What about if they are raising their children and/or working full time? Your daughter may say move in, but what about the son-in-law. Also, what happens if you need more care then they are able to provide?

You could allocate savings to pay, and if you’re extremely wealthy it might work. But at an average cost of $70,000 – $100,000 and higher a year, how long would your savings last?

Long-Term Care is not just for a year or two. Someone with Alzheimer’s could need care for 10 years or more. A person with Multiple Sclerosis in their 50’s could live for decades, and with good Long-Term Care Insurance, they stand a better chance of staying independent and have some enjoyable years.

When should you buy – The younger, the better! Rates are lower, but more importantly, is the likelihood your medical history is good and you can qualify. Always remember that regardless of your age, your medical history buys the policy not your money.

For some people, the need for Long-Term Care comes suddenly and without this valuable coverage it becomes a life altering event.

Again, I offer to discuss how to obtain this valuable coverage as well as to describe the details of this insurance.

Talk to your family. Make this evening’s conversation a gift to you and a gift to your entire family.

Abe Glickman, LTCA, LTCP


Abe Glickman Insurance Group

Toll-Free Phone: 877-298-5824


“It is better to create a plan 10 years too soon than one day too late.”

Questions or
Comments? Give me a call!

Be Aware

Do I Need Long Term Care Insurance?

Do I need Long Term Care Insurance?

Below is a simple self-assessment to see if you really need LTC.

Please answer all the questions honestly and objectively…

1. I want to live in my home as long as possible? YES                     No
2. I would like to remain independent as I get older? YES                     No
3. The quality of care I receive is important to me? YES                     No
4. When I need Long Term Care, I would like to have options of care providers/places? YES                     No
5. I don’t want to be a burden to family member as I grow older? YES                     No
6. I have had a personal experience making arrangements for someone in a nursing home? YES                     No
7. I believe needing Long Term Care as sometime in my lifetime could happen to me? YES                     No
8. I realize this is not an “old age” issue, that a Long Term Care event can happen to anyone…at any age? YES                     No
9. Protecting myself from losing everything I’ve worked for all my life is a concern to me? YES                     No
10. I would like to “safeguard” my family assets for my loved ones if something happens to me? YES                     No
11. An unexpected annual expense in excess of $100,000 would affect my family and me? YES                     No
12. My total assets are greater than $100,000 and less than $3.5 million dollars? YES                     No
13. I have done some financial planning? YES                     No
14. With Long Term Care costs exceeding $50,000 annually, I would run out of money within 4 years? YES                     No
15. I realize that as expensive as a Long Term Care event is now, I understand that costs are expected to triple over the next 20 years? YES                     No
16. I think Long Term Care is the BIGGEST unprotected risk to my life saving? YES                     No
17. I feel I could pay for my Long Term Care policy out of interest I receive on my savings? YES                     No
18. Long Term Care Insurance sounds like something I could benefit from if I could qualify for coverage? YES                     No
19. If I could own a Long Term Care policy and pay in an entire lifetime of premiums what would be the cost of less than one year in a care facility, it would make sense for me to insure myself against the uncertainty of needing Long Term Care? YES                     No
20. I don’t believe the Medicare/Medicaid will pay my Long Term Care? YES                     No
21. I want to receive Long Term Care benefits that are tax-free? YES                     No
22. If I could save a substantial amount of money in premiums, I would apply today? YES                     No


So, do I need Long Term Care Insurance?


To determine your score, please add up all of your “YES” answers…

Total of your “Yes” answers_______

15 or more…

          If you had a total score of 15 or more “Yes” answers – Everyday you procrastinate getting the “peace of mind protection” a Long Term Care policy provides, puts you at a greater risk of your health jeopardizing your qualifying! You should already own a Long Term Care policy! What are you waiting for?


          If you had a total score of 10 to 15 “Yes” answers – You should definitely submit an application today to see if an insurer would consider you an “insurable risk.”

Less than 10…

          If you had a total score of less than 10 “Yes” answers – You should re-examine your priorities to see what your alternatives are before committing to a Long Term Care policy.


Abe Glickman, LTCA, LTCP


Abe Glickman Insurance Group

Toll-Free Phone: 877-298-5824


“It is better to create a plan 10 years too soon than one day too late.”

Questions or Comments? Give me a call!