Long Term Care News - Senate Bill

This month, Republicans and Democrats have joined in the U.S. Senate to sponsor a bill that would provide an above-the-line deduction for long term care insurance bought through cafeteria plans. The bill would let workers buy long term care insurance with pre-tax dollars through employer-sponsored cafeteria plans and flexible spending accounts.

Current law permits individuals to deduct LTC insurance premiums only if they itemize and only if health care expenses exceed 7.5% of their adjusted gross income. “Millions of Americans have used cafeteria plans and FSAs to help protect their families and provide important financial protection,” ACLI President Frank Keating says in a statement. “Including long term care insurance will add an important piece to Americans’ financial security puzzle.”

Watch for future updates. For more information regarding Long Term Care Insurance or to receive a quote; visit QuoteBroker.com

What is your most important asset? - It's not your home.

Your ability to work and earn a living may be your most valuable asset. Would you be able to maintain your standard of living if you were too sick or too hurt to work? Probably not. According to Business Almanac, most people's savings wouldn't cover six months' worth of expenses.

If you are in an accident, become ill and cannot earn a paycheck, how will you pay your mortgage, car payment, utilities, and living expenses? Most Americans are financially prepared for death, but they have not prepared for the possibility of not being able to work. Yet, the probability of becoming disabled and unable to work between the ages of 35 and 65 is significantly higher than dying.

Disability strikes one in four workers before age 65. The financial repercussions of disability can be disastrous. According to the US Department of Housing and Urban Development, 46% of conventional mortgage foreclosures were attributed to disability and only 2% to death.

That's why disability income insurance is one of the most important parts of any financial plan. It can help assure that you and your family will have the income you need to live on--and that your retirement savings will continue to grow. Experts advise consumers to be prepared to pay 2-4 percent of your annual income in premium payments. The younger you purchase this benefit, the less expensive it will be.

Look for more upcoming information discussing disability insurance.

Long Term Care Insurance - Can you afford not to have it?

The New York Life Insurance company announced that they have recently completed a nationwide study, learning that the average cost of nursing home care was about 3% higher this year than in 2006, while home health care costs were up 12%. The average cost of a private U.S. nursing home room with a single occupant climbed to $209 a day, or $76,322 per year.

CareScout, a research arm of National Eldercare Referral Systems Inc., Wellesley, Mass., compiled the figures for New York Life by gathering data from about 3,000 nursing homes in 120 metropolitan areas.

>> The average private room rate increased by $5.36 per day, or $1,956 per year.
>> The cost of a semiprivate room, with double occupancy, rose to an average of $185 a day, or $67,554 a year.
>> The average semi-private room rate rose by $5.27 per day, or $1,924 per year.
>> The hourly rate for a home health aide hired from a Medicare-certified agency is averaging $37.36 per hour, up about 12%.

According to the study, the highest daily rates for private nursing home rooms in the U.S. were:
#1) Alaska: $407. #2) Southern Connecticut: $348. #3) Connecticut Valley: $322. #4) Hudson Valley, New York: $318. #5) Boston area: $299. Rates are expected to increase as our population ages.

To protect your assets and families estate - financial advisors recommend that a quality Long Term Care Insurance policy be apart of your overall financial plan and risk management program. Can you afford not to protect yourself?

To learn more about Long Term Care or Home Health Care coverage, or to a receive a personalized quote, contact QuoteBroker.