“So how are critical illness insurance providers responding to the need for simple and affordable products when this area can be highly complex and expensive? And can the simplification process only work if the products themselves are simple?  …  For product providers, the result is a trade-off between the simplicity required by consumers and the complexity that comes with the flexibility they want to give advisers. Two recent product launches illustrate the point.” LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform): On the horns of a CI dilemma.  Can simplification save protection? #goldencareagent
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“Long-term care insurance premiums have been rising for many consumers, but financial experts agree that everyone, including the very wealthy, should consider buying coverage. ‘I consider it portfolio insurance,’ says Ken Moraif, a certified financial planner and host of the radio show ‘Money Matters.’ Since long-term care expenses can quickly wipe out a person’s investments, having insurance can protect assets for future use or heirs. Those who do buy a plan may be in line to receive tax benefits as well. ‘Purchasing long-term care insurance is one of the few ways the IRS lets you deduct the cost for future
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“The market for long-term care insurance, which covers the costs of some in-home health care, has had a rough month. One provider announced that it would not sell any more policies; another is headed toward insolvency, with billions of dollars in liabilities needing to be assumed by someone else.  Yet in the face of this bad news, consumers are being sold newly created long-term care products that are less expensive than the older products that guaranteed monthly payments — and that brought two insurers to a reckoning.  …  Both announcements play into the consumer fear that an insurer won’t be
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“The report found that 57% of high-need survey respondents have trouble with activities of daily living such as eating, bathing and dressing. Of that group, 62% reported that they either rarely or never have someone to help them complete their ADLs. Roughly 75% of high-need respondents who said they did receive help reported that it came from a family member.” LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform): What is the comparative percentage of LTCI insureds who lack help with ADLs?  Low or non-existent I’d wager.  Insufficient or poor care is a function of inadequate financing
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“More than seven in 10 Americans nearing retirement say they are terrified of what health care costs may do to their retirement plans, according to the sixth annual Nationwide Retirement Institute survey conducted by Harris Poll. Nearly three in four older adults say one of their top fears in retirement is out-of-control costs for health care.  …  Among actions that non-retirees are doing now to save for health care costs in retirement: 41 percent are building their savings, 33 percent are paying off credit cards and debt, 28 percent are investing and 27 percent are increasing 401(k) contributions.” LTC Comment
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