Expert Advice for Long-Term Care Planning Key to Success

Matt Vegas pic

Interest in planning for longevity, health and Long-Term Care issues has never been bigger but some of the media coverage has been misleading. That is the message a nationally known Long-Term Care specialist delivered today on a national conference call of specialists around the country.

Matt McCann, who has been a leading expert in Long-Term Care insurance and longevity planning, said the Mark twain quote, “Never let the truth get in the way of a good story,” has never been more spot on especially when it comes to internet news coverage of this topic.

“It is easy to place a news story for people to consume today. We still have traditional TV and radio plus the expanded 24/7 news cycle with cable news. There is a lot of news and information to consume. The biggest difference today is anyone with a computer can create a news story. It seems almost everyone has a computer or smart phone and they are not afraid to use it,” McCann said.

McCann said the best way to describe some of the content being written about Long-Term Care insurance and longevity planning is not the often used “fake news” but more “lazy news” or “advocacy news”. “Everyone has an agenda. What information is true or how much information is left out can impact a consumer’s view of the story,” he explained.

McCann says internet and media articles about Long-Term Care insurance premiums and the public’s interest in Long-Term Care insurance is very misleading. It is up to Long-Term Care specialists to educate the consumer, so they can make a fair decision on how they will plan for the financial costs and burdens of aging.

“These stories are concentrating on old “legacy” products that were sold and priced prior to rate stabilization and the interest rate crash. The fact is even with increases these plans remain, for most people, very affordable. Plus, the benefits of these plans are huge and are providing tremendous benefit to the American family,” McCann said.

In 2017 the Long-Term Care insurance industry paid over $9.2 billion in claims according to the American Association for Long-Term Care Insurance. McCann notes very few people ever lapse these policies. Many don’t ever pay the increase on these old plans since they are easily able to adjust benefit levels to keep the premium level.

“Today all plans are priced with the very low interest rate environment factored into the equation. Remember, interest rates have been low in the United States over the last decade. While these older plans were not priced for low interest rates and low lapse rates they are today. In addition, underwriting is much more conservative and scientific that it was 15, 20, 30+ years ago. The industry has substantial claims and underwriting experience which makes the plans being sold today very rate stable,” McCann said.

He said some articles that suggest Long-Term Care insurance is expensive and few insurance companies offer are just not true.

“There are still numerous companies offering traditional Long-Term Care insurance. Plus, now companies offer shorter duration plans which offer benefits to older people or those with health issues and asset-based plans which offer life insurance or annuities with riders for coverage of Long-Term Care,” he said.

“The products are available to meet the demand for consumers to plan in advance for the financial costs and burdens of aging.”

McCann says all these options are very affordable especially for those in the age groups who are the primary market for purchasing the product.

“People are planning before they retire. When you are in your 40s and 50s these plans are very affordable. You still can design an affordable plan if you are older and there are products and designs which fit most budgets,” McCann added.

He told the group that policy design and understanding underwriting and how the product gets used at the time of claim is key for an agent or advisor’s ability to help a consumer.

“People contact me from all over the country. Many of my clients pay under $150 a month. Premiums are dependent on policy design – the amount of benefits available in the policy along with age and health. This is why a consumer should seek the help of a Long-Term Care specialist,” McCann said.

McCann said there are several outstanding online resources for consumers to learn about Long-Term Care. He mentioned:

US Department of Health and Human Services Long-Term Care site: https://longtermcare.acl.gov/

The American Association for Long-Term Care Insurance: www.aaltci.org

LTC NEWS: https://www.ltcnews.com/

He notes many states have specific websites for Long-Term Care. Plus, some specialists, like himself, have very good websites. McCann’s site is: https://mccannltc.net/

“Planning in advance for Long-Term Care just makes common sense. You don’t start planning for retirement when you are 70. You sure don’t plan for long-term care when you are too old. Ideally you wish to put a plan in place prior to retirement. Consumers will find it is easy and affordable income and asset protection which will reduce the many burdens on your family that are a result of your future aging,” McCann said.

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Long-Term Care Insurance Premiums are Rate Stable and Affordable

Matt McCann pic 2017Recent reports about Long-Term Care Insurance premiums can be very misleading and misrepresent the truth, according to Matt McCann a nationally known expert on Long-Term Care Insurance and Long-Term Care planning.

“By any kind of common sense measure, Long-Term Care Insurance premiums are not skyrocketing and the industry is not only stable but very healthy. Interest by consumers for Long-Term Care planning has never been higher. The fact is Long-Term Care planning has become a key part of overall retirement planning and LTC insurance is easy and affordable asset protection,” McCann said.

McCann says today’s policies are priced appropriately based on rate stability regulations. While old policy series have had increases those increases were based on older plans that were priced well before the interest rate crash and before the rate stabilization measures.

“Yes, old plans were not priced appropriately based on the liberal underwriting and in many cases unlimited benefit plans they were selling at that time. Even with increases the premiums are still substantially less than if the person bought the same level of benefit today. Many people are over-insured. Many of these old plans were UNLIMITED benefits with 5% compound inflation. When you combine this unlimited benefit with a low initial premium with loose underwriting standards along with the interest rate crash you can understand why the problem occurred,” McCann noted.

However, McCann says many people never actually pay a higher premium on these old policies. He says that many people take lower inflation options or going from unlimited benefits to a large pool of money in lieu of paying a higher premium.

This has no impact on plans that have been on the market since the implementation of rate stability regulations which started in 2004. With the new rules in place insurance companies have had to price products more conservatively although they remain affordable.

“Underwriting became much more scientific and conservative. Pricing also considers the extreme low interest rate environment which is a primary pressure point on Long-Term Care Insurance premiums. Premiums also consider that consumers do not lapse these policies. Even with the increases on the old policy series going back decades, the lapse rates have been nil. This indicates two things, consumers understand the importance of planning for the financial costs and burdens of aging and premiums remain very affordable,” McCann noted.

The National Association of Insurance Commissioners passed the Rate Stabilization Model Act in 2001, and 41 states have adopted a variation of this Act. The first new rate stabilized products were made available to consumers from 2004 and 2006 depending on the insurance company. Companies are required to price more conservatively and are penalized should a rate increase be needed. The direct result is appropriate pricing which protects consumers from large future rate increases.

“An insurance company cannot ask for increases on current product series policy holders based on the mistakes of the older plans. This provides substantial peace-of-mind for those who are planning today. It is also not easy to raise premiums; the insurance company must show a substantial need based on actuarial data and have it based on a class basis only. This means they can’t increase an individual alone or product series that are priced correctly to make-up for problems with the much older plans,” McCann said.

Fewer policies are being sold overall, however McCann says this has more to do with fewer insurance agents and financial advisors selling it.

“Since underwriting is tighter and things like the federal partnership program exist which require additional certifications (https://mccannltc.net/resources/faq/state-partnership-program), fewer agents want to deal with it. However, business for true LTC specialists are going through the roof. People like me see the huge amount of consumer interest and as a result the increase in business. Consumers are very interested in finding an affordable plan to address the costs and burdens that come from longevity,” McCann explained.

McCann says specialists like him are speaking to primarily consumers ages 45 to 65. He says these people know the impact long-term care can have on a family because of personal experience with parents or other family members.

“They discover that today’s LTC insurance is very affordable. It safeguards their retirement accounts (401(k) IRA SEP 403(b)) while making their aging issues much easier on their family. Premiums are based on several factors including age at application, health and amount of benefits being applied for. As clients are younger and healthier many of my clients are paying under $130 a month some even $100 a month for partnership certified plans,” McCann said.

He explains that plans are custom designed based on the consumer’s specific situation and concerns. Articles which discuss current premium averages can also be misleading.

“The amount of benefit a consumer should apply for is based in part by where they live or expect to live once they retire. The cost of care can vary dramatically depending on location. The cost of care is higher on the East and West coasts and is generally much less in the South and Midwest. Averages can be misleading since it includes premiums from policies purchased from high cost states and many of those have large populations,” he said.

McCann notes that some insurance agents and financial advisors with little experience in long-term care often design plans which are much larger than what is required as they don’t understand how policies actually get used.

“This is why consumers should work with true Long-Term Care Insurance specialists who understand how underwriting, policy design and claims work and can make the appropriate recommendations,” McCann said.

Learn more about Long-Term Care Insurance: www.mccannltc.net

Find the cost of care in your state and the availability of tax incentives and partnership plans: https://mccannltc.net/resources/states

Get free quotes from all the top companies: https://mccannltc.net/free-quotes

The best time to plan is when you are younger and more healthy – prior to retirement. The financial costs and burdens of aging will impact you, your family, your savings and your lifestyle. Caregiving is hard on family members and paid care drains savings like your 401(k) IRA SEP 403(b) and other assets. Long-Term Care Insurance is Easy and Affordable Asset Protection making your aging easier on your loved ones.

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Tax Reform and Improved Economy Will Explode Long-Term Care Planning in 2018

Matt at Hyatt 2017The growing economy and tax reform will encourage more people to plan for long-term care in 2018. Matt McCann, one of the nation’s leading Long-Term Care Insurance experts, says consumer interest will continue to grow as people wish to have an advance plan for the financial costs and burdens of aging.

The passing of tax reform along with an ever-improving economy will result in more Americans to plan for the financial costs and burdens of aging in 2018, according to a leading expert on Long-Term Care Planning.

Matt McCann says more Americans than ever before are concerned about the impact of Long-Term Care on their families and their future retirement savings. An improving economy will mean more people will feel the need to safeguard their 401(k) IRA SEP and 403(b) accounts from the high costs of extended care when they get older.

“There are already twice as many people who own long-term care insurance policies today than owned them in the year 2000. Most top Long-Term Care Specialists have seen tremendous growth in the amount of interest from consumers in the past few years in long-term care. I fully expect this to increase dramatically as the growing economy and tax-reform will make people feel they need to protect their growing retirement savings while easing the burden long-term care places on families,” McCann said.

McCann, one of the nations leading experts on Long-Term Care Insurance Planning, said as people continue to feel better about their future they understand the need to protect what they have. In addition, he explained while money is always important more people understand the physical, emotional as well as the financial burden that their future long-term care will have on their spouses and adult children.

“According to the administration the average family of 4 earning $70,000 per year will get a $2,000 tax benefit. Those who are self-employed or own business will also see tax benefits. Tax deductions for medical expenses, including long-term care insurance premiums, will still be allowed. The Trump administration continues to support Health Savings Accounts and these can be used to pay for LTC premiums by using pre-tax money,” McCann noted.

Another big change in the past few years, according to McCann, is more people understand the burdens that are placed on family caregivers. He says without any advance planning this burden is placed on adult children, usually a daughter or daughter-in-law.

“People understand they don’t want to place the burden of caregiving or even managing paid care on their family. Many people have had to go through that with their own elder parents or other family members. People tell me all the time they want their family to be family and Long-Term Care Insurance allows family to be family,” he said.

McCann says one of the things he hears from the adult children and spouses at the time of claim is a Long-Term Care policy provided them with the time to be loving and supportive instead of having everything placed on their shoulders.

“They tell me it was a gift. Yes, money that paid for quality care was important as it protected savings, but the policy gave them the time to be family,” said McCann.

McCann notes that Long-Term Care Insurance is very affordable despite some of the media articles which say otherwise.

“Ignore some of the media articles about Long-Term Care Insurance since they are just wrong. Premiums are very affordable. For most people you can obtain a solid plan for under $150 a month, some of my clients even less. Premiums are based on the age and health of the person at the time of application as well as the amount of benefit they wish to have. Most of my clients do this well before retirement when they can enjoy low premiums as well as qualify for preferred health discounts,” McCann explained.

McCann said many financial advisors or general insurance agents recommend benefits which are too large since they don’t understand how these plans actually get used at the time of claim. Cost of care varies depending on where a person lives. He said he recommends benefits based on where a person lives or expects to live in retirement. Plus, in most states which offer partnership policies that provide additional dollar-for-dollar asset protection, you can design a very affordable plan, with shared spousal benefits and partnership benefits at a very low premium.

“I just read an article where the writer said the average premium was $4000 a year. Not even close. It underlines the need for a consumer to work with a long-term care insurance specialist who understands policy design and claims use, underwriting and partnership,” McCann said

McCann said Gary Cohn, Director of the National Economic Council and chief economic advisor to President Donald Trump, predicts the stock market’s big run since the November 2016 election will march even higher as tax-reform will provide a lot more momentum in the stock market.

“This means as people earn more in their retirement savings the need to protect those savings from the high risk and cost of long-term care will increase. As we age the need for help with activities of daily living increase substantially. Longevity also brings more cognitive issues as more people will suffer from Alzheimer’s and dementia. The reality is we need to plan and more consumers understand this fact,” McCann said.

McCann says Long-Term Care Insurance is easy and affordable asset protection. Despite the importance of asset protection, he says it is still about family.

“The bottom-line for most people I speak with is family. Sure, they wish to protect hard-earned savings and maintain their lifestyle. But emotionally they really don’t want to place all this burden on their loved ones, not when it is easy and affordable to plan to avoid just that,” he said.

McCann assists people nationwide using his unique process where they speak with him on the phone while viewing his computer screen on their computer.
He works with all the major companies in Long-Term Care.

He suggests several online resources which are valuable for planning and education:

US Department of Health and Human Services – https://longtermcare.acl.gov/
LTC News – www.ltcnews.com
Plus, his website: www.mccannltc.net

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Cost of Long-Term Care Varies Depending on Where You Live

State Map from website 2017

So you are planning for your future retire. Great. Now you must plan for the financial costs and burdens of aging. The cost of Long-Term Care will impact you, your family, your savings and your lifestyle. You want to safeguard your hard-earned assets and reduce the future burden on your adult children and their families (yes, if they have not yet grown up they will … they will move out of the house).

The cost of long-term care is expensive. Caregiving is hard. Long-Term Care Insurance is Easy and Affordable Asset Protection. First, learn what the cost of care is where you live now … or where you might move to down the road.

Go here to learn about the costs of care and tax incentives available in your state: https://mccannltc.net/resources/state-information

Did you know many states participate in the federal/state partnership program? Do you know the benefits of the program? Learn more here: https://mccannltc.net/resources/frequently-asked-questions/state-partnership-vs-non-state-partnership-plans-ltc-policies

You may have read that Long-Term Care Insurance is expensive. For most people it is very affordable. Learn more here: https://mccannltc.net/resources/frequently-asked-questions/is-long-term-care-insurance-expensive

Now get FREE QUOTES from all the major companies: https://mccannltc.net/quote

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Rising Markets and Improving Economy Need for Long-Term Care Plan

One out of every 10 American households will be worth at least $1 million within the next four years and these individuals should be planning to protect their savings with Long-Term Care Insurance.

First Time Millionaires Should Have Long-Term Care Insurance. You might be closer to being a millionaire than you think!

 

A million dollars is not what is used to be but more people are getting to their first million. As more people invest in their employer’s 401(k) and other retirement programs their savings are growing. You add the money in retirement plans plus current savings and investments and the value of a home more people just like you will soon (or may already be) a millionaire!

The financial costs and burdens of aging will impact you, your family, your savings and your lifestyle. When you add up the value of your 401(k) and other savings, plus the value of your home, you might at some point become a millionaire but that doesn’t mean you have the ability to pay for the high costs of long-term care. Even if you are a multi-millionaire, do you want to sell off assets and use your own money to pay for care? Who would manage that and would they make the right decisions? How would that impact your spouse’s lifestyle. Would it impact your adult children and their family?

This is why affordable Long-Term Care Insurance should be part of your retirement plan. Most people want to manage a Long-Term Care situation without becoming dependent on their adult children or spouse. Generally, spouses are not the best caregivers because of their own age and health. Adult children have their own careers and family responsibilities.

Since the premiums are very affordable, especially when you purchase a plan before you retire, a Long-Term Care policy will safeguard your assets and ease the tremendous burdens that are placed on your family.

With advances in medical science we are all living longer. Longevity is a risk for long-term care not to mention illnesses and accidents which also cause the need for help with activities of daily living — or supervision due to memory issues.

Why not discover how easy and affordable LTC Insurance can be … read the full article from LTC News here: https://www.ltcnews.com/articles/first-time-millionaires-should-have-long-term-care-insurance

Then act now and get FREE Quotes from all the top companies: https://mccannltc.net/quote

Do you know the available tax incentives and the cost of care in your area? Learn that here: https://mccannltc.net/resources/state-information

Watch this video from me and I look forward to speaking with you soon: https://www.youtube.com/watch?v=rk3JR-A9rKk

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IRS 2018 Long-Term Care Insurance Deduction Schedule

Many people are unaware of the significant tax-treatment available with Long-Term Care Insurance. As more people purchase these plans prior to retirement, these tax benefits can make what is an affordable product even more valuable.

Tax deductible limits for traditional Long-Term Care Insurance premiums that are paid in 2018 have been increased according to the American Association for Long-Term Care Insurance.

Long-Term Care Insurance has attractive tax treatment under IRC 7702(b). Premiums can be tax deductible if you have enough medical related deductions, you are self-employed or own a LLC, S-Corporation or C-Corporation. C-Corporations can deduct 100% of the premium. Otherwise the IRS publishes a chart each year which indicates the amount deductible based on age.

Read the full article from LTC News: https://www.ltcnews.com/articles/irs-2018-long-term-care-insurance-deduction-schedule

Learn about Long-Term Care and tax incentives from my website: https://mccannltc.net/resources/long-term-care-insurance-tax-benefits

Long-Term Care Insurance is Easy and Affordable Asset Protection. Before you retire discover how you can plan for the financial costs and burdens of aging. Safeguard your 401(k), IRA, 403(b) and other savings while reducing the tremendous burdens extended care placed on family members. The consequences can be huge – the solution is easy and affordable.

Get FREE QUOTES for all the major companies: https://mccannltc.net/quote

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Watch video and Learn About Long-Term Care Planning

Planning for the financial costs and burdens of aging can be complicated unless you discover your options with an experienced Long-Term Care Specialist.

This is where I can help!

 

Since 1998 I have helped thousands of people nationwide learn about their options and discover how easy and affordable a Long-Term Care Insurance policy can be. Most financial planners and insurance agents don’t understand fully how policies work and get underwritten. Nor do they understand how they actually get used at the time of claim.

Watch this video: https://www.youtube.com/watch?v=rk3JR-A9rKk 

I recommend several reference websites for research:

LTC Planning News offers articles and resources: www.ltcnews.com
US Department of Health and Human Services: www.longtermcare.gov
McCann’s website also has several outstanding resources: www.mccannltc.net

Long-Term Care Insurance is Easy and Affordable Asset Protection.

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