Long Term Care Insurance – Why You Should Get It

August 26, 2014

There are arguments that attempt to prove that you don’t need long term care insurance. Hopefully, you wouldn’t. However, that’s the very philosophy behind insurance as a whole: You are paying for something you hope you’ll never need.

Is it wise to have a home insurance policy? If your answer to this is yes then I really don’t see why you shouldn’t have a long term care insurance policy. The reason for getting a home insurance policy is most likely that it protects your most valuable asset — And that’s where you’re really wrong. Although the materialism of our times have actually made us think that our house is our most valuable asset, it isn’t. Are you surprised?

Your health is much more important than your home. In the event of a threat to your life and property, you most likely will abandon your property to preserve your life. Your house has a meaning because you have life. And if that life becomes miserable, nothing else will make sense. Ask anyone who’s had reason to be bedridden and they’ll tell you your health and its care are really more important.

And, yes, I know you’re not sick at the moment. You are taking good care of yourself and expect to grow old gracefully. If that’s you, then you should have plans for long term care. If you live above 70 years, or require long term care before then, you might become a financial wreck by a year’s stay in a nursing or under any form of specialized long term care.

Yes, since people live longer these days, the cost of staying in a nursing home is on the increase. If you consider that it costs around $100,000 for a year’s stay at the moment, you can predict what it will be a few years from now and the effect it will have on your finances. Compare it with what you’ll spend on long term care insurance premium and you’ll see what’s best for you.

To reduce cost, take time to visit sites that give you long term insurance quotes from several A rated insurance companies. That way you’ll be able to save a bundle while protecting yourself.

And, you can really get your long term insurance policy without altering your insurance budget. Just take some time to get quotes on your other policies — Auto, health and home. A guy was able to make savings of $2,000 plus on his auto insurance by visiting one of these sites. You might not make savings anywhere close to that but be assured that unless you visited five insurance quotes sites just last month, you’ll most likely save a few hundred dollars.

Long Term Care Insurance – Understanding the Four Basic Components

August 18, 2014

You’ve done your research and have decided that Long Term Care Insurance (LTCI) is right for you and your family. The next step is to become familiar with the basic structural components of an LTCI policy.

When building an LTCI policy there are four primary variables that must be considered. They are:

• daily benefit amount
• benefit period
• elimination period
• inflation protection

Daily benefit amount refers to the maximum amount an insurance company will pay per day if extended care is needed. To determine the proper daily benefit amount you must first determine the cost of care in your part of the country. In Orlando, Florida, where I live, a private room at a nursing facility will cost you $215 a day. Alternatively, that same room in New York City will cost you $400 a day. An LTCI policy with a $200 daily benefit amount would provide excellent coverage in Orlando but would be grossly insufficient in New York City.

The second major structural component of an LTCI policy is the benefit period. Benefit period refers to the length of time an insurance company will pay benefits if the insured receives the full daily benefit amount. If the insured receives less than the daily benefit amount then the insured’s policy will last longer than the defined benefit period. Under this scenario, the benefit period serves as a multiplier in calculating the lifetime maximum benefit.

For example, Carolyn has an LTCI policy with a $200 daily benefit amount and a three year benefit period. The lifetime maximum benefit of Carolyn’s policy is $219,000, which is calculated by multiplying the daily benefit amount by the number of days in the benefit period (i.e. $200 x 1,095 days). Suppose Carolyn receives extended care totaling $200 per day. Under this scenario Carolyn will have used her entire lifetime maximum benefit in three years. Alternatively, Carolyn receives extended care totaling only $100 per day. In this scenario, it will take Carolyn six years to exhaust her entire lifetime maximum benefit or twice as long as the defined benefit period.

Elimination period, the third structural component, is similar to the deductible on your homeowners or auto insurance. It is the amount of money you, the insured, agree to pay before the insurance company begins paying. Unlike your homeowners or auto insurance, however, elimination period is expressed in terms of days. The typical elimination period options found in LTCI polices are zero, 20, 90 or 100 days. If your policy is structured with a 100 day elimination period then you are agreeing to pay for the first 100 days of extended care before your policy begins to pay.

The final variable to consider when structuring an LTCI policy is inflation protection. When structuring an LTCI policy it must not only work today but ten, twenty and even thirty years down the road. With the cost of long term care expected to increase by over four percent per year the daily cost of a private room in a nursing home in Orlando, Florida is expected to climb from $215 to over $450 in just 20 years! Without inflation protection an LTCI policy could become woefully inadequate.

Many insurance companies provide several options when it comes to inflation protection. The first and most costly option is an automatic inflation option. This option, as the name suggests, automatically increases the daily benefit amount every year. Another option typically offered is a guaranteed purchase option which gives the policyholder the opportunity to purchase additional coverage. Under this option if you elect to increase your coverage your premium will increase. Which option is best for you depend upon many factors including age, family medical history and budget.

Discussed in this article are the main building blocks of an LTCI policy. In addition to the four main structural components are a multitude of riders and other features that add to the flexibility and complexity of LTCI policies. When the time comes to structure your LTCI policy, it is recommended that you contact an LTCI specialist who will save you considerable time and effort by drawing on his/her experience and education to design a plan that is right for you.

What You Need to Know About Windshield and Auto Glass Insurance

August 12, 2014

Most of us never think about our auto glass insurance until we notice a chip or crack in our windshield. Drivers need to be informed about insurance so that when the time comes to repair or replace their windshield, they are knowledgeable of their coverage and benefits.

Your windshield is one of the most important safety features on your vehicle. When it becomes cracked or chipped, it is crucial that you visit a reputable auto glass repair professional to have it replaced or repaired. One reason that people may put off having their windshield repaired is the cost. Many drivers are unsure if their insurance coverage includes auto glass and others are afraid that their premiums will increase if they contact their insurance company.

Drivers with comprehensive auto insurance are typically covered for damage that may occur to their vehicle. This coverage includes falling debris, rocks, hail, or other damages to your windshield and other glass. With comprehensive insurance, you may end up paying very little to replace a window or windshield. In some cases, a new windshield may cost the driver nothing at all. Motorists with only liability and collision insurance will not be covered for auto glass damage.

Many drivers with comprehensive insurance are hesitant to contact their insurance company about a cracked or chipped windshield because they are concerned that their premiums will increase. Typically, your insurance rates will not increase because of an auto glass claim. Be sure to check with your insurance agent to determine what types of glass repair and replacement are covered under your particular policy.

Anyone who has had deal with an insurance company after a collision or accident knows that the process can be time consuming. This is why many motorists often forgo dealing with their insurance company for auto glass damage. Typically, insurance companies do not require that an insurance adjuster inspect your vehicle for a windshield repair or replacement. In fact, many auto glass shops can take care of processing your claims and submitting necessary paperwork to your insurance company.

You have the right to choose which auto glass shop you want to work with. Your insurance company may have a preferred glass shop that will try to steer you toward but you have no obligation to use them. Keep in mind that you get what you pay for. Using a low cost glass shop that provides sub-standard products and installation will not give you the results you desire. While your insurance company may choose what glass it will pay to have replaced, you have the option of paying the difference between what is covered by the insurance and what you would like installed.

When choosing an auto glass repair or replacement shop, you want to make sure that they are experienced and skilled. Your replacement windshield should be a factory-quality product and installed with the care and precision you expect form a top-tier shop. Be sure to choose a quality installer who offers a warranty on workmanship and product defects for as long as you own your vehicle.

Your vehicle’s windshield and glass should be well maintained and in top condition at all times. If you are in need of repairs, contact your insurance company first to determine what kind of coverage you are eligible for.

Best Quote Auto Car Insurance-How To Spot The Best One Quickly And Painlessly

August 6, 2014

You’re looking for the best quote for auto car insurance? Who is the best service provider for you? Actually, there is no one right answer to this question.

The best quote will entirely depend on you, your personal driving record, what kind of vehicle you are insuring, etc. Here are some tips to help you find the best quote for your car insurance as quickly as possible.

First of all, you need to decide whether or not you want to purchase full coverage car insurance. This basically means that you own a higher level than the lowest amount of insurance necessary to be legal in your state.

This will obviously be more pricy, but in many cases it’s worth it. Of course, many drivers purchase less than the full in order to save money, but this simply puts them at risk of paying out of your own pocket in the case of an accident.

There are several ways to find the best full coverage care insurance for your auto. First, search for firms that give out price reductions for different reasons. Many times, companies offer discounts for good driving records, your age, type and number of cars that you currently have insured.

Here’s an example: you can often get a lower rate if you already own home insurance with the company you are looking to acquire car insurance from. Not every company offers this, of course, but it’s certainly worth checking out.

Remember, the most important factor in finding the best quote for your auto car insurance is to shop around beforehand. Don’t just go with the first one you hear.

Remember, there is no company that will offer the best quote in every single situation. In order to find the best one for you, you will need to shop around and find this out yourself. Yes, it will take some due diligence, but the end result will certainly be worth it.

Also, try checking with friends, relatives and family who already own car insurance, and find out how happy they are with the service they are getting. Follow these tips, and you will find the best quote for your auto car insurance, and at an affordable price.