As a child, riding a seesaw was fun, wasn’t it? Well, except when you didn’t have equal weight on both sides, then it was just out of balance and someone got stuck in mid-air. That begs the question: is your leadership out of balance? Most likely it is because statistically, more than 85% of the population tilts toward being strong at either Results or Relationships and weak at the other. The idea of balancing results and relationships is nothing new, but if we assume that character is the foundation of leadership, then there should be an inner motivation to accomplish the mission (get results) and take care of the people (build relationships).
The time of our nation’s baby boomers reaching retirement age is upon us. Talking with clients about the need for long-term-care insurance (LTCI) is critically important for any advisor doing retirement income/distribution and legacy planning. For many of our clients, this is a sensitive subject; no one wants to think about the possibility of being dependent on others to aid with basic daily tasks. Even in this day and age, when people are living longer and healthier lives, no one is immune to health issues that could result in reduced mental capacity or chronic illness.
One of the most exciting things about a new business is imagining the possibilities. This was certainly true of the LTC insurance industry when it first began around 25 years ago.
It’s true. We do live in interesting times. We live in interesting times as they relate to the overall economy, the worldwide political environment and, yes, the long-term care planning (LTC) environment.
A 55-year-old couple purchasing long-term care insurance protection can expect to pay $2,700-per-year (combined) for about $340,000 of current benefits which will grow to over $700,000 of combined coverage when the couple turn age 80. According to the 2012 National Long-Term Care Insurance Price Index published by the American Association for Long-Term Care Insurance (AALTCI) prices for long-term care insurance policies currently being offered are between six and 17 percent higher than comparable coverage a year ago.
Thanks to Baby Boomers and modern medical marvels, more Americans than ever are heading into their senior years, and they’re expected to live longer than ever, too. Barely 50 years ago, our average life expectancy was 62.5 years; today that number has risen to 78.2 years, according to the U.S. Census Bureau. That means that more Americans than ever will also soon be deciding how to handle their eldercare. Steve Casto, Retirement Income Specialist and author of Is Your Retirement Headed in the Right Direction?, (www.stevecasto.com), says there are important questions and answers to consider before making that critical decision.
Sixty-six percent of all caregivers in this country are women, a number that is increasing as the population ages. Many of these women are so caught up, even trapped, in this role they seriously neglect their own needs, which can lead to physical, emotional and financial burnout. In The Caregiving Wife’s Handbook: Caring for Your Seriously Ill Husband, Caring for Yourself (Hunter House Publishers) by Diana B. Denholm, PhD, women will find the support and tools they need to get through this stressful time with compassion while keeping themselves emotionally whole.
The largest open long-term care insurance claim has reached $1.7 million in paid benefits, according to a just-released report from the American Association for Long-Term Care Insurance (www.AALTCI.org). The claimant, a woman, purchased coverage at age 43, paying an annual premium of $881. Three years later her long term care insurance claim began and has continued for almost 15 years. [Note: Payment of policy premiums ceases when an individual is receiving policy benefits.]
The sale of asset-based long-term care insurance protection continued to grow significantly according to research by the American Association for Long-Term Care Insurance the national trade organization. According to data gathered from leading insurers, premium increased nearly 20 percent and the number of covered lives increased 13.5 percent.
“We expect the sale of asset based or linked LTC products will continue to grow as they offer some highly attractive benefits to a category of buyers looking to protect their retirement savings,” states Jesse Slome, AALTCI’s director. “The growth of sales will only continue as more large players enter the marketplace.” Pacific Life recently introduced a universal life insurance policy that provides long-term care benefits.