Long Term Care Awareness Month

November is Long Term Care awareness month so we wanted to make sure you were aware of the benefits and necessity of this particular coverage.Long-Term Care Insurance Policy

We will offer ideas and suggestions on how you can maximize your insurance coverage regularly here on the DeWitt Risk Management Blog. 

Before we begin our discussion of what Long Term Care is and what it does to protect you, consider a couple statistics:

1. 73% of people would have no idea how to respond if they received a phone call today notifying them that they had a family member who would require immediate long term care assistance.

2. 78% of people indicate they would find discussing long term care with a financial professional helpful, but only 16% of people have had the desired conversation.

Where do you fall within the above statistics? Have you received that phone call yet? Have you considered your options if you were to receive such a call? Have you thought about discussing the matter with a financial professional? Have you actually broached the topic with your insurance broker? Stop waiting around for the situation to come at you when you’re unprepared. Take action now by putting a plan in place.

The rising costs of long term care make having a plan more important than ever before. In many instances, it is the difference between financial ruin and continued financial stability. If you haven’t yet considered your retirement needs, now is the time. If you have considered your retirement needs, but either weren’t aware of Long Term Care coverages or felt it was unnecessary, reconsider the facts.

According to the SCAN Foundation on the State of Long-Term Care Financing:

  • 70% of Americans who reach age 65 will eventually need long term care, but there are very few who are prepared to pay long term care costs.
  • Families bear a huge part of the burden; providing approximately $450 billion in unpaid caregiving and $63 billion in out of pocket costs.

Experts indicate that while it is never easy to think about these particular issues, both the need and the cost for long term care continues to rise. Planning ahead is critical to ensure that you get the care you need when the time arises. Advancements in medical science and technology have increased the average American’s life expectancy drastically. According to experts in the industry, 10,000 baby boomers will turn 65 every single day over the next 20 years. As the average American continues to live longer, millions will receive or provide long term care at one point or another during their life. Most assume that when the need for long term care arises, they will be able to rely on the government to foot the bill or at least provide for a substantial portion of their needs. Many others assume that they can rely on their immediate family members to provide needed care of pay for the care when necessary. At the same time, people in general are now more afraid of burdening their family financially than they are of dying (according to a 2010 Harris Interactive survey from Age Wave).

With all this concern and worry running rampant amongst the general populace, it might be safe to assume that most have come up with a solution – they have a plan. This is where the issue gets interesting. Most don’t have a real plan. They have assumptions and guesses; which in most cases aren’t actually going to end up covering their long term care needs as they might expect. The best recommendation from experts on the topic is to have a written plan and to share that written plan with loved ones. Actually coming up with a plan for your own long term care definitely comes across as a formidable task, but it can be done and doing so will greatly alleviate a lot of worry that you don’t even realize you have regarding the issue.

When coming up with your own long term care written plan there are three key considerations:

  • How you want to receive care.
  • Where you want to receive care.
  • Who you want to provide the care.

Understand that the cost of care is changing and when we say it’s changing, we mean that it’s only getting more expensive. Begin by evaluating the cost of care where you intend on living. (For those interested in helpful tools accessible by smartphone, consider free mobile apps from Genworth available for iPhone and iPad). It’s also important to consider that planning for long term care overlaps with retirement planning. Cost of care is increasing. The annual median rate for a private room in a nursing home at $83,950. When these costs are considered it becomes obvious how easily your very well thought out retirement plan could be thrown off track or even completely depleted in response to an unplanned long term care need that crops up in your golden years.

It’s never too early to get started. It’s the rule of thumb for any savings or investment strategy and it applies just as easily to planning for long term care with appropriate protection. The younger you are when you purchase long term care insurance, the lower your costs will be in most situations. As such, the age at which people are purchasing long term care coverage has dropped notably over the last 2 decades.

In response to these facts, long term care insurances have been evolving to meet the increased interest and growing need. Major providers are now emphasizing a more individualized approach which often allows consumers to increase or decrease coverages in specific areas according to their own needs, expectations and available budget.

Long term care insurance can make a huge difference in the success of your overall retirement plan, and providers are there to help families manage what many see as one of life’s most daunting challenges. From insurance and public programs, private family support, self funding or even a combination of these, there are many options to consider as part of your retirement strategy.

We all know that knowledge is power. Know your options. Know the facts. And take advantage of the tools at your disposal. Call your broker here at DeWitt Risk Management today to discuss the long term care coverage options so you can make an informed decision and put together your own written plan.

Important Notice Regarding Pre-Tax Health Insurance (Section 125)

Zane Benefits logoLast year, Zane Benefits introduced a pilot program utilizing the pre-tax health insurance concept (originally referred to as the “Pre-tax Premium Payment (PPP)” program). The PPP program provided the opportunity for employers to set up a Section 125 cafeteria plan that allowed employees to set aside a portion of their paycheck voluntarily. The money set aside would be used to pay for individual health insurance premiums using pre-tax dollars.

Recently, the Department of Labor issued guidance on the Affordable Care Act. The release included a discussion of Section 125 cafeteria plans and individual health insurance. As a result of this new federal guidance, Zane Benefits will no longer be promoting the pre-tax health insurance program.

Any DeWitt Risk Management groups who wish to continue to allow employees to take advantage of the section 125 cafeteria plan for individual health insurance premium, are encouraged to consult with their legal counsel.

We will continue to work with providers intent on exploring other affordable insurance options for employees of small employers that do not provide group health insurance.  Please get in touch with your group benefits specialist at DeWitt Risk Management with any questions or to discuss alternate options for your group or company.

Complicated Health Care Landscape Doesn’t Necessarily Mean More Complications for You

life insurance solutions family happy in hammockEveryone has heard the talk about recent and upcoming health care reform changes. Many insist that the health care landscape will never be the same. Some applaud the changes and others seem to live in fear of the next announcement. What does this have to do with you? The majority of business owners providing Group Benefits Plans as well as the individuals who have taken care to access Individual Plans taking care of their health insurance, dental/vision coverage needs will answer immediately. They firmly believe that the changing health care landscape is not only making health care more complicated, but making THEIR life more complicated at the same time.

At DeWitt Risk Management we disagree. While changes to something so vital to so many as health care can lead to complications, those complications don’t have to be YOURS. We believe that the health care reform has only made the Broker role more critical than ever. You don’t have to figure out how to navigate and interpret pending and currently in force government mandates regarding health care and insurance coverage/s because we are here to do that for you. We are your broker…your interpreter…AND your navigator. We won’t let any recent or upcoming changes negatively affect you, your family or your company. With an expert on your side, the recent and upcoming government health care mandates don’t have to throw you into a doom & gloom era. Regardless of how you feel personally about recent and upcoming changes to the health care industry, keep an expert from DeWitt Risk Management on your side and you’ll know that you are in the best possible position for yourself, your family and your business.

DeWitt Risk Management specializes in finding personalized, unique solutions for Group Benefits Programs. We also provide extensive services to business owners looking for protection for what they have worked so hard to build. Related services include: Implementation of Buy/Sell Solutions, Financial Arrangements, Key Man Protection Policies, etc. If there is something you consistently worry about regarding your company’s future success and stability, get in touch. We will be able to outline potential solutions. If there is nothing you consistently worry about regarding your company’s future success and stability, get in touch. We know a few things about preventing financial crises before they loom on the horizon. Many of our clients think of us as their off site Human Resources Department. We provide varying levels of hands on involvement depending upon what you need and what you request. We do the research and due diligence. You don’t need to be an insurance benefits expert because you’ll always have one at your disposal here at DeWitt Risk Management Consultants.

Our Individual Product Specialists can assist with Medical, Dental, Vision, Disability, Short Term Medical, Long Term Care, Retirement Planning, Life Insurance Products including the possibility of “Becoming Your Own Banker”™ and Creating a Legacy for your Posterity. At DeWitt Risk Management we don’t just sell insurance. We create relationships with our clients and stay on top of industry news and recently released plan options so that we can honestly advise you regarding what you need for your lifestyle, your budget…your family. Our individualized solutions are hand picked to suit your needs; not the needs of your Broker or the insurance provider/s.