Virginia Cash Advance Loans

They had the foresight to buy a good term care policy 5-10 years ago. My first comment is: great for them. When you take a seat and take a look at the premium for long term care at various ages, you quickly see that the younger you get it the better. This seems obvious, but I am here to show you that the premium differences are extreme. Take a glance on the premium at age 45, for example, and compare it to age 65, the age where most people even start thinking about long term care.

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However, (using Arizona being an example) 5-6 in years past nursing home expenses were about 0 a day. This works to around ,000 a year. Today, the average is ,000 a year.

Upon becoming conscious of this fact, many people want to consider the steps necessary to obtain their coverage more consistent with current costs. When they begin looking around, they discover two things...

Because they're older, the premium is substantially greater. A great deal of times, it is indeed high that it isn't really even affordable.

Looking at similar coverage at an older age and seeing a higher premium makes sense, but there is another historical factor as well. Over the final five years, long-term care premiums have increased about 40%. A lot of this had to do with initial insurance company pricing. The actuaries began their mathematical assumptions using statistics to the general population. In many ways, this is a stab inside the dark. But they had to start somewhere. As time went on, they learned that claims were much higher than their original projections. After an insurance company has enough business for the books for this to get statistically relevant, they start using actual experience.

So people who wish to bump their coverage up are often taking a glance at off-the-chart premiums-- both because they're older as well as the insurance companies have modified their pricing.

But depending about the situation, there might be a solution...

Many individuals have CDs and annuities. In most cases, the CD is considered "rainy day" or "emergency" money. The annuities are "non-qualified deferred annuities". Most with the time, they may be just sitting there, such as the CD, but with a longer holding period in mind. Over 90% of folks die holding the annuity "as is"; these are never converted to some type of the income.

There are several insurance businesses that allows you to transfer a CD or even an annuity in to a special combination annuity/long term care product.

It functions such as an annuity in it grows tax-deferred in an annually-set interest rate. However, if your person ever has long-term care needs associated with a type (adult day care, respite care, hospice care, assisted living or even a full blown nursing home) withdrawals may be made from your annuity. Generally funds may be withdrawn more than a three year period. Keep this three year time frame in your mind--it can be very relevant in a minute.

So far, this doesn't sound excessive different than simply withdrawing funds from an existing CD or annuity. But there is certainly one key reason to create the exchange to an annuity/long term care plan. Some insurance firms allows you to add a rider which offers lifetime coverage. This is a huge benefit for any few reasons...

First, many people have a very 3 year or 5 year long term care plan. When the 3 or 5 years are up, that's it. Second, medical advances are prolonging life. Is one kidney on the blink? No problem, a medical team will just insert a brand new one. Third, the greatest issue is not about general health, but the opposite. A person may be blessed with good health, develop Alzheimer's, live for many, many years and exhaust their entire estate on health care.

Now, let's return to the three years. The person posseses an (inadequate) long term care policy which can be good for three years. They move their CD or annuity for this combination annuity/long term care plan that's good for 3 years as well.

Here is the main element point. If they added the lifetime rider which kicks in after three years, they are good to the duration.

Last, let's cover the "without paying premiums" part...

By moving a CD or annuity into this mixture plan, anyone has built another three year long-term care plan. No outlay required here.

Adding the lifetime rider includes a cost. But since it does not start for three years, it's like creating a 3 year "waiting period" on a traditional long lasting care plan, as opposed for the typical 60, 90, 180 day wait. So the premium is quite low.

Second, the premium might be paid by withdrawing from your annuity itself. Today, a person would have to pay tax around the withdrawal (assuming there was a gain inside the annuity), but after 12/31/09 withdrawals such as this is going to be tax free. This is a new provision inside Pension Protection Act of 2006.

If you end up underinsured and concerned, take a look at your circumstances and determine if this method may solve your problem.

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