by Thomas D. Begley, Jr., Esquire, CELA
-
- INTRODUCTION
Statistics show that approximately 70% of the population age 65 or over will require some form of long-term care. Some will be there for relatively short periods of time. These are usually stroke victims who are doing rehabilitation. A significant percentage will remain in a nursing home for an extended period of time. These are usually Alzheimer’s or Parkinson’s patients.
A statistic widely quoted is that the average stay in a nursing home is 2.9 years. This statistic is somewhat misleading, because the persons receiving rehabilitation are often discharged in one month or less. The long-term patients may stay in the nursing home for many years.
Unfortunately, as the population ages, the cost of health care is increasing, and government entitlement programs are being cut back. The cost of a nursing home in New Jersey today is approximately $125,000 – $160,000 per year. Some nursing homes are slightly less, and some are significantly more.
There are five sources for nursing home payment. They are: private pay, long-term care insurance, Medicaid, Medicare, and Veterans Administration.
- MEDICAID
2.1. Administration
This is a program administered by the states and funded by both federal and state governments. Rules vary from state to state. In New Jersey, Medicaid is administered by the County Welfare Boards. Medicaid pays for nursing home care for eligible individuals.
2.2. Eligibility
2.2.1. Citizenship and Residency
Must be a U.S. Citizen or resident alien and a resident of New Jersey.[1] An individual is not allowed to enter New Jersey solely in order to receive Medicaid.[2]
2.2.2. Categorical
Must be 65 years of age or older[3] unless blind or disabled.[4] “Blindness” means visual acuity of 20/200 or less in the better eye with use of a correcting lens.[5] “Disability” is defined as the inability to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment, which can be expected to result in death, or which has lasted or can be expected to last for a continuous period of not less than 12 months.[6]
2.2.3. Medical Eligibility
Must also be eligible from a medical standpoint. This is done by a Medicaid nurse completing a necessary form stating the diagnosis, medication, etc.
2.2.4. Income
2.2.4.1. Cap
New Jersey is an income cap state. This means that if an individual’s income exceeds $2,199 for 2016 (300% of the SSI individual benefit), the individual is not eligible for Medicaid. The solution is to establish a “Miller Trust.” By utilizing the Miller Trust, excess income is placed into the trust. Essentially, the income in the trust goes to pay for long-term care, but is not counted as income for income cap purposes. This is a legal fiction that makes no logical sense, but it works.
2.2.4.2. Types
All types of income are counted including wages, social security, pensions and annuities, alimony, interest and dividends.[7]
2.2.4.3. Name on Instrument Rule
The name on instrument rule applies in determining to whom income belongs. If there is a joint “and” account, income is deemed to belong one-half to each. If it is a joint “or” account, Medicaid takes the position that the entire account belongs to the applicant.[8]
2.3. Minimum Monthly Maintenance Needs Allowance
Medicaid Regulations provide for a Minimum Monthly Maintenance Needs Allowance which is composed of $1,991.25 per month adjusted annually on July 1 of each calendar year, plus the community spouse’s expenses for rent, mortgage, taxes, insurance and certain utilities in excess of $597.38 per month. These figures are for the period July 1, 2015 through June 30, 2016.[9] The maximum MMMNA is currently $2,980.50.[10]
2.4 Resources
2.4.1. Cap
Resources cannot exceed $2,000.[11]
2.4.2. Excluded Resources
2.4.2.1. Home
The primary residence and lot are excluded if occupied by the institutionalized person or the community spouse. Absence of more than six months creates a presumption that the home no longer serves as the principal residence.[12] However, states may establish a cap on the equity of the home. The minimum cap is $552,000 and the maximum cap is $828,000.[13]
2.4.2.2. Automobile
One automobile is exempt.[14]
2.4.2.3. Personal Effects and Household Goods[15]
2.4.2.4. Wedding Ring and Engagement Ring[16]
2.4.2.5. Medical Equipment
Needed by an institutionalized person or a member of his household.[17]
2.4.2.6. Burial Fund
A prepaid funeral is permitted provided the funeral director places the payment in an irrevocable trust for this purpose or, provided that a life insurance policy is irrevocably assigned to the funeral director.[18]
2.4.2.7. Inaccessible Resources
Resources which cannot be liquidated are considered inaccessible resources.[19]
2.4.2.8. Term Life Insurance[20]
Term life insurance is not countable since it has no cash value.
2.4.2.9. Whole Life Insurance with a maximum face of $1,500[21]
2.5. Pooling
Resources owned individually by the institutionalized spouse and the community spouse or owned jointly by the institutionalized spouse and the community spouse are pooled together to determine Medicaid eligibility. However, this rule does not apply to a spouse who entered a nursing home prior to September 30, 1989.[22] Transfers between such spouses, are permitted without resulting in any period of ineligibility.
2.6. Transfer of Resources
2.6.1. Look-Back Rule
There is a 5-year look-back for transfers of assets.[23] This means that the disposal of resources, for less than fair market value, in the 5-year period prior to the month of application must be reported at the time of the Medicaid application. Transfers made beyond the look-back period are not penalized. Transfers within the look-back period are penalized.
2.6.2. Penalty
2.6.2.1. Transfer Penalty
To calculate the penalty, divide the amount of the transfer by the average cost of nursing home care in New Jersey, $10,116.28, or a daily rate of $332.59, in 2015.[24] Under the Deficit Reduction Act, the penalty is calculated in partial months.[25] The penalty is the period for which the institutionalized spouse would be ineligible for Medicaid. Under federal law, the penalty is unlimited.[26]
2.6.2.2. Beginning Date
The penalty begins on the later of the date of the transfer for less than fair market value, or the date on which the individual is eligible for medical assistance under the State Plan and would otherwise be receiving institutional-level care based on an approved application for such care but for the application of the penalty period, whichever is later and which does not occur during any other period of ineligibility.[27] Therefore, the penalty begins when a person is actually receiving care, has reduced his or her resources to $2,000, and has no other penalty outstanding.
2.6.2.3. Transfers by Community Spouse
Transfers by the community spouse are also subject to the same penalty as transfers by the institutionalized individual.
2.6.3. Exemptions from Transfer Penalty
Exemptions from the transfer penalties period are:[28]
(1) Transfer to the community spouse or for the sole benefit of the community spouse.
(2) Transfers to a blind or disabled child or for the sole benefit of a blind or disabled child.
(3) Transfer of a principal residence to:
(a) Community spouse.
(b) Child under 21, blind or disabled.
- Child who is residing in the house for at least two years, and who had provided care for the parent, allowing the parent to stay at home.
- Sibling who also has an ownership interest in the house, and who is residing in the house for at least one year.
2.7. Community Spouse Resource Allowance
This guarantees the community spouse a minimum amount of resources without affecting the institutionalized spouse’s Medicaid eligibility. For 2016, this is the greater of $23,844 or one-half of the couple’s non-exempt resources not to exceed $119,220.[29] These figures are adjusted on January 1 of each calendar year.
2.8. Snapshot
The determination of a couple’s resources is made at the time the institutionalized person begins to receive a “nursing home level of care” or at the time of the Medicaid application, whichever first occurs. A nursing home level of care could be care at home or in an assisted living facility or in a nursing home. This determination is used to establish the Community Spouse Resource Allowance.[30]
2.9. Taxation
In doing Medicaid planning, income tax, gift tax and estate tax consequences need to be considered, including medical deductions, personal dependent exemptions, carry-over basis, and step-up in basis.
2.9.1. Income Tax
2.9.1.1. Medical Deduction
The IRS permits an income tax deduction for medical expenses. Medical expenses include qualified long-term care services.[31] Qualified long-term care services are defined in the tax code[32] as “necessary diagnostic, preventive, therapeutic, curing, treating, mitigating and rehabilitative services, and maintenance and personal care services, which: (a) are required by a chronically-ill individual, and (b) are provided pursuant to a plan of care prescribed by licensed health care practitioner.” A chronically-ill individual is a person certified by a licensed health care provider as being unable to perform two activities of daily living for a period of at least 90 days. The activities of daily living are defined to mean “eating, toileting, transferring, bathing, dressing and continence.” The Conference Report notes “It is intended that an individual who is physically able, but has a cognitive impairment such as Alzheimer’s disease, or other form of irreversible loss of mental capacity, be treated similarly to a person who is unable to perform at least two activities of daily living.”
A taxpayer can claim an itemized deduction for unreimbursed medical expenses to the extent such expenses exceed 10% of adjusted gross income. Qualified long-term care services, insurance premiums and other eligible medical expenses may be aggregated.
Except for insulin, expenditures for medicine and drugs are deductible only if prescribed by a physician.
Capital expenditures are deductible if they are medically necessary and represent an unrecoverable sunk cost. To the extent the purchase increases the value of an asset, the expenditure is non-deductible regardless of the degree of medical need. The IRS has published a list of home modifications that are deemed not to add to a home’s value.[33]
Personal care services are tax deductible, if provided pursuant to a plan of care prescribed by a licensed health care practitioner (i.e., physician, registered nurse, geriatric care manager). Expense must be primarily related to needed assistance with any of the disabilities for which the individual qualified as chronically ill or cognitively impaired. Examples include expenses related to a patient’s dressing, grooming and bathing, if an individual is unable to perform those functions without assistance. There is no deduction for what might be termed “maid” services. These include cooking and general cleaning.
Payments for qualified long-term care services provided by an individual do not qualify as paid-for medical care if the service is provided by the spouse of the individual or by a relative, unless the service provider is a licensed professional with respect to the service.
2.9.1.2. Personal Dependent
If a person pays for more than 50% of the support of a relative, and the relative in calendar year 2016 has less than $4,050 of gross income for the year and has not filed a joint return with his or her spouse, then the person paying the support may claim the relative as a dependent on the person’s federal income tax return.[34] For purposes of calculating the 50% requirement, tax-exempt interest income, disability income and Social Security income, of the relative is counted. However, for purposes of calculating the $4,050 of gross income, tax-exempt interest income, disability income and Social Security income are not counted. If a person claims a relative as a personal exemption, the relative must not file a joint return.[35]
The personal exemption amount for taxable years beginning in 2016 is $4,050.[36]
2.9.1.3. Medical Deduction – Relative
Under the Federal tax code[37] a person can claim a medical deduction for medical expenses paid on behalf of a relative, if the person provided over half of the relative’s total support for the calendar year. The person can deduct the medical expense of the relative, even if the person cannot claim the personal dependent exemption because the relative received $4,050 or more of gross income in calendar year 2016.[38]
A relative is defined[39] as “a child or descendant of a child; stepchild; brother, sister, by whole or half-blood; stepbrother, stepsister; father, mother or ancestor of either (grandparent, great-grandparent, etc.); stepfather, stepmother; nephew, niece; brother or sister of father or mother (uncle, aunt); brother-, sister-, father-, mother-, son-, or daughter-in-law.”
The taxpayer claiming the exemption must, in combination with other taxpayers (i.e., children), provide more than half of the support of the dependent individual for the calendar year. The taxpayer claiming the dependent must have individually provided more than 10% of the individual’s support. The taxpayer must sign a Multiple Support Agreement Form 2120 if:
(1) The taxpayer provided less than half of the dependent’s support for the
calendar year; but
(2) The group provided more than half of the support; and
(3) No one person furnished more than half of that support; and
(4) The taxpayer contributed more than 10% of the support; and
(5) Each person in the group contributed more than 10% signs a
written declaration (Form 2120 can be used) that he/she won’t
claim that individual as a dependent for any tax year beginning
in the calendar year.[40]
All of the declarations must be attached to the return of the taxpayer claiming the dependency deduction.[41]
2.9.1.4. Dependent Care Credit
This is available to a child on behalf of a dependent parent although the parent has more than $4,050 of gross income in calendar year 2016.[42] However, the parent must be physically or mentally incapable of providing self-care (i.e., cannot provide for his or her own hygiene or nutritional needs, or needs the full-time attention of another person for the parent’s safety or the safety of another). The purpose of the credit is to reimburse for care expenses related to the taxpayer leaving home to take employment. Taxpayers are usually better off taking the care expenses as a medical expense deduction.
2.9.1.5. Carryover Basis
In determining which assets to transfer and which assets to retain, consideration must be given to the fact that the donee of a gift receives a “carryover basis.”[43] This means that the cost basis of the donee is the same as the cost basis of the donor. Therefore, when the transferred assets are sold, the donee must pay capital gains tax. The best strategy is, usually, to transfer unappreciated assets to the donee, and reserve appreciated assets for the donor. That way, any gain on the sale of the appreciated assets can be offset by deducting the cost of the nursing home from income tax.
2.9.1.6. Step Up in Basis
Assets forming a part of the estate of a decedent are included in that person’s estate for federal estate tax purposes. The beneficiary of the estate receives a “step up” in basis with respect to those assets so that the beneficiary’s new basis is the fair market value of the assets as of the date of the death of the decedent.[44] The strategy, therefore, is to not sell the home during your lifetime so that your children receive a step up in basis with respect to that property on your death.
2.9.1.7. Retirement Plan
If either spouse has a retirement plan, such as an IRA or savings plan, the withdrawal of funds from that account is a taxable event. If some period of private payment to the nursing home is required, it makes sense to use the money in the retirement plan for this purpose. The medical deduction for the qualified long-term services can be used to offset the taxable income resulting from the withdrawal from the retirement plan.
2.9.1.8. Deferred Annuity
If either spouse has a deferred annuity, the withdrawal of funds from the annuity is a partially taxable event. That portion of the payment representing the initial purchase price of the annuity is a return of principal and is non-taxable, but the accrued income is taxable. If some period of private payment in the nursing home is required, it makes sense to use the money in the annuity for this purpose. The medical deduction for the qualified long-term services can be used to offset the taxable income resulting from the withdrawal from the retirement plan.
2.9.1.9. Interest on Series E, Series EE and Series I Bonds
At the time Series E, EE or I bonds are redeemed, income tax is due on the accumulated interest.[45] The same is true if the bonds are transferred to another person. Generally, it would be better not to cash in the bonds until such time as the proceeds of sale of the bonds are needed to pay for the nursing home. This is because the medical deduction for the nursing home expense will offset the taxable income from the redemption of the bonds.
2.9.1.10. Domestic Help
Withholding of Social Security and Medicare taxes is required of all employees receiving cash wages of $1,900 or more in calendar year 2016.[46] If the employee receives total cash wages of $1,000 or more in any calendar quarter in 2016, federal unemployment taxes must also be withheld. The first $7,000 of cash wages is subject to federal unemployment (FUTA) in 2016.[47] After an employee reaches $7,000 during the year, the FUTA tax is no longer required. The employer is not required to withhold federal income taxes from the wages paid to household employees unless the employee so requests and the employer agrees. The employee must give the employer a completed W-4, an Employee’s Withholding Allowance Certificate. If there is an agreement for withholding for income taxes, either party may end it by written notice to the other.[48]
If household help is obtained through an agency, the agency is generally responsible for paying the tax, but this must be verified with the agency.
2.9.1.11. Gain on Sale of Home
2.9.1.11.1. General
There is an exclusion[49] from gross income for the sale of a principal residence, if the property was owned and used by the taxpayer as the taxpayer’s principal residence for two of the five years preceding the date of the sale. The amount of the gain excluded is $250,000 for a taxpayer filing individually and $500,000 for taxpayers filing jointly. In the case of married couples, the ownership requirement can be met by either spouse, but both spouses must meet the use requirement, and neither spouse has claimed the exclusion during the two-year period ending on the date of the sale. This provision is applicable to sales on or after May 7, 1997.
2.9.1.11.2. Joint Returns
In the case of joint returns, the exclusion applies if either spouse meets the ownership and use requirements.
2.9.1.11.3. Divorce
If a taxpayer obtains property from a spouse or a former spouse incident to a divorce, the period that the taxpayer owns the property will include the period that the spouse or former spouse owned the property. A taxpayer is treated as using the property as the taxpayer’s principal residence for any period that the taxpayer has an ownership interest in the property and the taxpayers’ spouse or former spouse is granted use of the property under a divorce or separation instrument provided that the spouse or former spouse takes the property as his or her principal residence.
2.9.1.11.4. Determination of Use During Periods of Out-of-Residence Care
A taxpayer who owns property during the five-year period, but who resides in any facility, including a nursing home licensed by a state, counts the time residing in the nursing home as use of the property.
2.9.1.11.5. Residences Acquired in Rollovers Under Section 1034
If a residence is acquired under a Section 1034 rollover, the time periods during which the taxpayer owned and used the former property are counted.
2.9.1.11.6. Repeal of Non-Recognition of Gain on Rollover of Principal Residence
Section 1034 (relating to rollover of gain on sale of principal residence) is repealed.
2.9.2. Gift Tax
If transfers are made in excess of $14,000 per person per year, then a Gift Tax Return will have to be filed by April 15th of the calendar year following the date of the gift. There is an annual exclusion for gifts of $14,000 per person per year or less.[50] If a spouse consents, the annual exclusion gift may be increased to $28,000 per person per year. In addition, there is a gift tax exemption of $5,450,000 for an individual and $10,900,000 for a married couple,[51] so no tax will be due for gifts which do not exceed the amount of this gift tax exemption. There is no tax due from the recipient of the gift. The $14,000 annual exclusion gift will be indexed for inflation in the future.
New Jersey does not have a gift tax. However, New Jersey does have an inheritance tax for assets which are left to persons other than a spouse or lineal ascendants and descendants. If a transfer is made to someone other than a spouse or lineal ascendants and descendants within three years of the date of death, this constitutes a transfer which falls within the scope of the New Jersey Inheritance Tax. In that situation an Inheritance Tax Return must be filed and the appropriate tax paid.[52]
2.9.3. Estate Tax
For persons dying in calendar year 2016, there is a federal estate tax exemption of $5,450,000 for 2016. This is indexed to inflation.[53]
2.9.4. New Jersey Estate Tax
There is a New Jersey estate tax exemption equivalent of $675,000, which means that New Jersey estate tax is not due for estates of $675,000 or less.[54]
2.10. Use of Trusts and General Powers of Attorney in Planning for Medicaid Eligibility
2.10.1 Advantages of Using a Trust over Outright Gifts to Other Individuals
2.10.1.1. Control
The trust allows the grantor to direct, in advance, how the transfer of property is to be managed administered and distributed thereby allowing some control.
2.10.1.2. Risk Avoidance
By transferring assets to trusts as opposed to outright to children, the risk of a child’s creditors attaching the transferred assets or having the assets become involved in a divorce are eliminated. The child would not have declare the transferred assets on a financial aid application, if they are held by a trust.
2.10.1.3. Tax Benefits
Qualification of the trust as a grantor trust allows the grantor to be taxed on the income earned by the trust at the grantor’s marginal income tax rate even if the income is not distributed to the Grantor.
2.10.1.4. Step-up in Basis
If the trust assets are included in the grantor’s estate, the trust principal will be included in the grantor’s estate at death and will receive a step-up in basis at that time.[55]
2.10.1.5. Exclusion from Capital Gain on Sale of Principal Residence
The $250,000 – $500,000 exclusion from capital gain on the sale of a principal residence can be preserved through a properly-structured trust.
2.10.2. Trust Buster Statute
The statute provides “Any provision in a contract of insurance, will, trust agreement or other instrument which reduces or excludes coverage or payment for goods and services to an individual because of that individual’s eligibility for or receipt of Medicaid benefits shall be null and void, and no payment shall be made under this act as a result of such provision.” This statute has never been tested in court. This statute appears only to apply to instruments which provide for mandatory distributions which are then cut back when the individual applies for Medicaid. Example: “Upon the beneficiary applying for Medicaid, all income payments to him shall terminate.”[56]
2.11. Medicaid Transfers by Power of Attorney
It is necessary to explore the capacity of the client to make transfers. If the client lacks the necessary mental capacity, the transfers may, nevertheless, be accomplished through a Power of Attorney, if the document so authorizes. Under New Jersey law gifts are not permitted by an attorney-in-fact except to the extent that the Power of Attorney expressly and specifically so authorizes.[57]
The next problem with a Power of Attorney is whether the agent has authority to make gifts to himself. The agent is a fiduciary. If the Principal wants the agent to be able to self-deal when making transfers for Medicaid purposes, the Power of Attorney should explicitly authorize such gifts. However, authorization of an agent to make gifts to himself under a Power of Attorney, might be considered a general power of appointment.[58] The power of appointment would then cause the assets of the principal to be includable in the agent’s gross estate for federal estate tax purposes.[59] One solution would be to have the Power of Attorney name a special agent with authority to make transfers to the regular agent. An alternative might be through obtaining court approval. A third way might be to put conditions in the Power of Attorney as to when the agent might have the right to self-deal.
2.12. Medicaid Planning by Guardians
Guardians are authorized to make transfers for the purpose of obtaining Medicaid eligibility. In the case of In the Matter of Mildred Keri,[60] the Supreme Court held that a guardian may make transfers for purposes of obtaining Medicaid eligibility for a ward. The Court imposed a five-point test:
- The spend down plan must not interrupt or diminish an
incapacitated person’s care.
- The plan involves transfers to natural objects of the
person’s bounty.
- The plan does not contravene an expressed prior intent
or interest.
- The plan clearly provides for the best interests of the
incapacitated person.
- The plan satisfies the law’s goal to effectuate decisions
an incapacitated person would make if he or she were
able to act.
It is wise to consider making transfers, which are consistent with the estate planning goals of the client. If inconsistent transfers are made, they may result in litigation from beneficiaries of the estate who consider themselves to be treated unfairly.
2.13. Strategies
2.13.1 The Home
- Transfer home to Community Spouse
- Transfer home and retain life estate
- Transfer home and reserve right to use and occupy
- Family reverse mortgage
- Transfer home to grantor trust
- Sale of remainder interest in home
- Purchase life estate
2.13.2 Spend Down
- Pay off debts
- Pay for services
- Prepay real estate taxes
2.13.3 Convert Countable Assets to Non-Countable Assets
- Buy household goods or personal effects
- Make home improvements
- Purchase life estate from children
- Prepaid funeral
- Buy more expensive home
- Purchase Annuity?
2.13.4 Transfer of Assets
- Large transfer of assets
- Care Agreement
- Income Only Trust
- Children’s Trust
- Disability Annuity Trust
- Disability Annuity Special Needs Trust
2.13.5 Divorce
2.13.6 Hardship Waiver
- LONG-TERM CARE INSURANCE
Long-term care insurance can be helpful to clients who are healthy enough and affluent enough to afford it. As Elder Law attorneys, we must all be aware that Medicaid and other public assistance programs may not continue to exist in the future as we know them today. It would be a disservice to our clients to advise them to rely on these programs in the future. Clients who can afford long-term care insurance and who may be insurable, should be urged to consider purchasing the insurance. Premiums for nursing home insurance can be controlled to a certain extent by the client. The features which affect the premium cost, which can be selected by the client, are the maximum daily benefit, the elimination period, the benefit length, the inflation rider and the amount of home care covered. There are two factors that the client cannot control, which greatly affect the premium. These are the client’s age at application and health history. For this reason, clients should purchase long-term care insurance at the earliest possible time. Most experts consider that the best time to purchase long-term care insurance is about age fifty.
Congress provided tax deductions[61] and tax relief for “qualified long-term care insurance contracts.” New Jersey has regulations concerning long-term care insurance contracts.[62]
It is estimated that only 6% to 8% of the elderly have private long-term care insurance.[63] There are four reasons why people do not buy long-term care insurance:
- Lack of Awareness – The industry has not done a good job in marketing this product.
- Denial – 77% of people surveyed by the American Council of Life Insurance believed they would be healthy in retirement.[64]
- Cost – It is estimated that only 10% to 20% of the elderly can afford such insurance.[65]
- Insurability – Many people wait until they have a diagnosis before applying for long-term care insurance. At that point, they are no longer insurable. Agents estimate that approximately 25% of persons applying are rejected for health reasons.
3.1. Nursing Home Insurance Factors
3.1.1. Coverage
Policies need to be carefully analyzed to see if there are exclusions for alcohol and drug abuse related services or mental health related services. New Jersey requires that all policies include coverage for Alzheimer’s and other organic brain disorders.
3.1.2. Premiums
Premiums for long-term care insurance are high. However, the cost of the premiums is relatively low compared to the cost of payment for a nursing home. Each family must make the premium fit within its family budget.[66] The earlier the policy is purchased, the more affordable the premium.
Most long-term care insurance policies are guaranteed renewable. This means that coverage cannot be canceled by an insurance company, nor can premiums be raised on an individual basis, because of increasing age or declining health. Premiums can be raised only on a class basis affecting all policyholders with that insurance company in that class, and then only with the approval of the state insurance department. In practice, premiums are seldom, if ever, raised on this basis.
3.1.3. Daily Coverage
Persons buying long-term care insurance usually purchase a policy which reimburses their long-term care costs up to a selected maximum amount per day. For example, in this area many people purchase $350 per day of coverage. The actual average cost of a nursing home in New Jersey in 2016 averages close to $400 per day for the basic rate. Ancillary charges such as medications and incontinent care are extra. The difference is made up by the individual’s Social Security, pension or other income.
Some policies are written as a pool of money. An individual might purchase $638,750 of coverage. This is the equivalent of $350 per day coverage for five years ($350 x 365 days x 5 years = $638,750).
3.1.4. Gatekeepers
Companies can sell qualified or non-qualified policies. Qualified policies offer certain safe harbor tax benefits. The primary advantage of a tax-qualified policy is that the benefits paid under the policy are clearly not taxable income. The disadvantage of a tax-qualified policy is that the figures for coverage are more difficult to achieve. Many agents sell only tax-qualified policies.
For a long-term care insurance policy to be a qualified contract, it must provide for benefit eligibility to be determined by meeting a chronically-ill individual standard. The term “chronically-ill individual” means an individual who has been certified by a licensed health care practitioner as being unable to perform at least two of the activities of daily living (ADLs) and whose disability is anticipated to last for a period of at least 90 days due to a loss of functional capacity; or, requiring substantial supervision to protect such individual from threats to health and safety due to severe cognitive impairment.[67] There are two triggers under the new law. The ADL Trigger and the Cognitive Impairment Trigger.
3.1.4.1. ADL Trigger
The activities of daily living (ADLs) include eating, toileting, transferring, bathing, dressing and continence. The long-term care insurance policy must take into account at least five of such activities. The inability of the insured person to perform two of the five or two of the six ADLs without substantial assistance triggers eligibility under the policy.[68] The 90-day period is not a waiting period. The 90 days can be prospective and does not affect the elimination period.
3.1.4.2. Cognitive Impairment Trigger
Severe cognitive impairment means a deterioration or loss in intellectual capacity that is measured by clinical evidence and standardized tests which reliably measure impairment in short- or long-term memory; orientation to people, place or time; and deductive or abstract reasoning. The deterioration or loss must place the individual in jeopardy of harming himself or others and, thereby, require substantial supervision by another individual. A person who is physically able but has cognitive impairment such as Alzheimer’s Disease or another form of irreversible loss of mental capacity is treated similarly to an individual who is unable to perform (without substantial assistance) at least two ADLs.
The IRS defines substantial assistance as “hands-on assistance and stand-by assistance.”[69] “Hands-on assistance” means the physical assistance of another person without which the individual would be unable to perform the ADL. “Stand-by assistance” means the presence of another person within arms’ reach of the individual that is necessary to prevent, by physical intervention, injury to the individual while the individual is performing the ADL (such as being ready to catch the individual, if the individual falls while getting into or out of the bathtub or shower as part of bathing, or being ready to remove food from the individual’s throat, if the individual chokes while eating). An individual is chronically-ill only if a licensed health care practitioner has certified that the individual is unable to perform (without substantial assistance from another individual), at least two ADLs for a period anticipated to last at least 90 days due to loss of functional capacity. A licensed health care practitioner is a physician, registered professional nurse, licensed social worker, or other individual who meets requirements that may be prescribed by the IRS.[70]
3.1.5. Inflation Provisions
Nursing home costs in New Jersey increase faster than the general rate of inflation. Some homes increase annually, some more often. A daily benefit of $250 purchased today may be sufficient now, but may be inadequate five years from now when the client enters a nursing home. Therefore, inflation coverage should be considered.
Some policies have inflation riders which offer increases based on the Consumer Price Index (CPI). Insureds are offered the right to purchase additional coverage at their attained age. Premiums increase when high coverage is elected. Other companies offer policies with an inflation rider which increases coverage automatically at 5% per year, either on a simple or a compounded basis. Automatic inflation riders keep premiums level as benefits increase. Nursing home costs increase on a compounded basis, so an inflation rider, which increases on a compounded basis, is best.
3.1.6. Pre-Existing Conditions
New Jersey LTC regulations define a “pre-existing” medical condition as any condition for which the applicant received advice or treatment during the six month period prior to making application. Further, if an applicant is accepted, a company cannot impose a pre-existing medical condition waiting period on the insured person for more than six months from the effective date of coverage. Persons with diagnosed Alzheimer’s or Parkinson’s Diseases will always be denied coverage. However, persons with histories of cancer, heart disease or similar conditions are often able to obtain coverage. The insurance companies generally like to see a period of time during which it is clear that the condition is controlled. In some instances, the coverage is obtained at regular rates. In other instances, the coverage is granted, but the client is rated, which means that the client pays a higher insurance premium or is offered a shorter benefit length or a longer deductible.
3.1.7. Benefit Length
The benefit length is the period of time which the insurance company will pay after the client starts receiving benefits for long-term care. Coverage is available for two years, three years, four years, five years, six years or unlimited. The longer the term of coverage selected, the more expensive the premium. Attorneys often advise clients to obtain three or four years of coverage. This enables the client to do public assistance planning and, under current law, all or most of the lookback period is covered by insurance. Because Medicaid, as we know it today, may not be available in the future, it may be well to advise clients to purchase as long a term of coverage as they are able to afford.
3.1.8. Guaranteed Renewability
It is important that a policy be guaranteed renewable. If a client purchases a policy when healthy, and is later diagnosed as having a condition such as Alzheimer’s, the client needs to have the assurance that his coverage cannot be canceled or his premium individually raised. Federal law now requires that qualified policies be guaranteed renewable.[71]
3.1.9. Home Heath Care
Most companies have comprehensive, “bundled” policies which include home health care. Some companies have home health care riders which can be added to the basic nursing home/assisted living facility coverage. At least one company has a policy which covers only home health care. Clients do not want to spend time in nursing homes. They would much prefer to stay at home. It is important to obtain home health care coverage so that the family can afford to keep the client at home.
3.1.10. Waiver of Premium
Some policies waive the payment of premiums when benefits are being received or have been received for a given period of time, typically 90 days. Premiums normally resume once benefits stop being paid.
3.1.11. Case Management
Some long-term care insurance policies offer a benefit option referred to as “case management.” Under case management a professional oversees the care and the services the insured would receive. The case manager may be an insurance company employee. This is managed care for long-term care insurance, and should be carefully analyzed. Other policies allow the client to choose his own case manager.
3.1.12. Adult Day Care and Respite Care
Most LTC policies provide benefits for adult day care services and respite care. Respite benefits allow for immediate coverage while an informal caregiver (wife, daughter, etc.) gets a break.
3.1.13. Quality of the Insurance Company
The quality of the insurance company is important. After paying premiums for a number of years, the client expects the insurance company to pay the claim when made. Because of the experience of Executive Life, Mutual Benefit Life and other insurance carriers which have experienced financial difficulties, it is wise for the attorney to counsel the client to look at the ratings of the insurance companies. Ratings services include the following:
- Moody’s Investors Service
99 Church Street
New York, New York 10007
Telephone: (212) 553-1658
Fax: (212) 553-4062
Website: www.moodys.com
- Standard and Poor’s
25 Broadway
New York, New York 10004
Telephone: 212-208-1527
Fax: 212-208-8571
- Duff and Phelps
55 East Monroe Street
Suite 3500
Chicago, Illinois 60603
Telephone: 312-368-3157
- A.M. Best
Ambest Road
Oldwick, New Jersey 08858
Telephone: 908-439-2200
Fax: 908-439-3296
- Weiss Ratings
4176 Burns Road
Palm Beach Gardens, Florida 33410
Telephone: 561-627-3300 or 1-800-289-9222
Fax: 561-625-6685
3.2. Policy Features
The features of the policy which determine cost are:
3.2.1. Daily Benefit
The daily benefit is the maximum amount of money which the insurance company will pay to the insured for each day of long-term care services.
3.2.2. Elimination Period
The elimination period is like a deductible. It is the number of days which the client is willing to pay privately before the insurance begins. Insurance is available which will pay from the first day of care. Other options are a twenty-day elimination period up to a 100-day elimination period or even 365-day elimination period. The longer the elimination period, the lower the premium. A 100-day elimination period usually makes sense. It can reduce the premium substantially at older ages, and Medicare and Medi-Gap Insurance may cover the 100 days, if the patient meets the Medicare requirements for a skilled nursing facility. If not, the client self-insures.
3.2.3. Benefit Length
The benefit length is the number of years the insurance company will pay the nursing home. The term begins after the client enters the nursing home.
3.2.4. Inflation Rider
A 5% compounded inflation rider is the most expensive, but affords the best coverage because the increases in nursing home rates are compounded.
3.3. Taxation
3.3.1. Income Tax Deduction
Under HIPAA, qualified long-term care insurance premiums are deductible from federal income tax as a medical expense up to certain limits.[72]
While payment for medical services provided by relatives does not ordinarily qualify for a medical expense deduction under I.R.C. §105(b), reimbursements through insurance to a relative for such care do qualify.[73] For example, if Dad, who has Alzheimer’s, hires his daughter, a licensed practical nurse, to care for him, payments from father to daughter are not tax deductible. However, if the insurance company pays the daughter, the payments are not counted as income to the father.
Eligible long-term care insurance premiums for a qualified long-term care insurance contract up to the following dollar limits for 2016 qualify as tax deductible medical expenses.[74]
Attained Age by Yr. End Annual Limit on Prem. Ded.[75]
40 or less $390
41-50 $730
51-60 $1,460
61-70 $3,900
Over 70 $4,870
Unfortunately, this deduction is largely illusory, because it is subject to the overall 10% floor of adjusted gross income on deduction of medical expenses. Most people who are healthy enough to purchase long-term care insurance do not have enough other medical expenses to deduct so that they can hit the 10% threshold. It is likely that the tax deduction will be attained only if one spouse is ill and the other spouse has the insurance.
3.3.2. Exclusion From Taxation of Benefits Under Qualified Contracts
Amounts received as benefit payments under a qualified long-term care insurance contract are treated as amounts received for personal injury or sickness, and as reimbursement for expenses actually incurred for medical care and are, therefore, excluded from income for tax purposes.[76] On flat indemnity policies, there is a limitation of $340 per day for 2016.[77] Amounts greater than this are tax-free to the extent they cover actual costs. The $340 figure will be increased to reflect inflation. It is not clear whether benefit payments made under non-qualified contracts are excludable from gross income.
- MEDICARE[78]
4.1. Requirements
Medicare will pay for nursing home care provided two requirements are met:
- Hospital. The patient must spend three days in the hospital and must be admitted to a
nursing home within 30 days after discharge from the hospital.
- Skilled Care. The patient must be admitted to the nursing home for skilled care on a daily
basis. Skilled care is defined as services that are so inherently complex that they can only be
provided effectively by skilled individuals or under the supervisor of skilled personnel.[79]
4.2. Coverage
Medicare will pay for up to 100 days. However, there is co-insurance from the 21st to 100th day. For 2016, the co-insurance rate is $161 per day[80], which must be paid by either the patient or a Medi-gap policy. The 100 days of coverage are not guaranteed. This is a maximum, not a minimum. If the patient is receiving rehabilitation and hits a plateau, Medicare will be stopped.
- VETERANS BENEFITS
5.1. Federal
A Veteran with a service-connected disability of 70% or more is entitled to free lifetime nursing coverage regardless of means. Veterans who do not have a service-connected disability are means-tested as to payment. The VA does contract with public and private nursing home facilities, in addition to using VA facilities.[81]
5.2. State
5.2.1. General
New Jersey Veterans Administration operates three Old Soldiers’ Homes for New Jersey Veterans and their families. They are located in Paramus, Edison and Vineland. Veterans, spouses of Veterans, surviving spouses, and certain parents may be eligible.[82]
5.2.2. Fee
The Adjutant General determines an “Established Rate” each year. The individual pays a portion of the cost of care based on their monthly income and ability to pay.[83] The VA monthly nursing home fee is 80% of the resident’s net income, not to exceed the Established Rate. In addition, 12% of the remaining 20% of the resident’s net income (maximum $20 per month) is set aside in a Welfare fund at the institution, and the remaining balance is placed in a personal needs account for the resident. Net income is calculated after the deductions discussed below. Income includes all income except for service-connected disability compensation. If a resident sells his home and a portion or all of the proceeds from the sale are not reinvested in a primary residence, any income earned from the investment of any or all of the proceeds will be counted as income.[84]
Certain deductions are permitted to the community spouse. For example, the community spouse receives a flat $700 exemption for food, transportation, clothing, telephone and home maintenance.[85] In addition, deductions requiring verification are permitted for rent, first mortgage payments, real estate taxes and insurance, heat and electric, water and sewer, life insurance for burial accounts, and other extraordinary expenses.
5.2.3. Guardianship or Advanced Directive
A Guardianship or Advanced Directive is required for admission.
5.2.4. Resources
The resource limit for a single person is $24,000, and for a married couple is $110,000.[86]
5.2.5. Look-Back
The Veterans look-back period is effectively 36 months.[87]
- CONCLUSION
Financing nursing home care in New Jersey is a complex enterprise. The rules change quickly and are not always written. Medicaid case workers often feel they have an obligation to protect the public purse, rather than to assist the applicant by suggesting various strategies. Case workers are sometimes poorly trained and do not know various planning techniques. Planning for Medicaid financing of nursing home care offers an excellent opportunity for elder law attorneys to be of assistance to their clients.
Rev. 1-5-16
[1]N.J.A.C. 10:71-3.2.
[2]N.J.A.C. 10:71-3.4.
[3]N.J.A.C. 10:71-3.9.
[4]N.J.A.C. 10:71-3.10.
[5]N.J.A.C. 10:71-3.12(c).
[6]N.J.A.C. 10:71-3.12(a).
[7]N.J.A.C. 10:71-5.1.
[8]N.J.A.C. 10:71-4.1(d)2.
[9]N.J.A.C. 10:71-5.7(c); 80 Fed. Reg. 3236 (Jan. 22, 2015).
[10]2016 SSI and Spousal Impoverishment Standards, www.medicaid.gov.
[11]N.J.A.C. 10:71-4.5(c).
[12]N.J.A.C. 10:71-4.4(b)1i.
[13]42 U.S.C. §1396p(f); 2016 SSI and Spousal Impoverishment Standards, www.medicaid.gov.
[14]N.J.A.C. 10:71-4.4.
[15]N.J.A.C. 10:71-4.4(3).
[16]N.J.A.C. 10:71-4.4(b)3ii.
[17]N.J.A.C. 10:71-4.4(b)3iii.
[18]N.J.A.C. 10:71-4.4(9).
[19]N.J.A.C. 10:71-4.4(b)6.
[20]N.J.A.C. 10:71-4.4(b)4.
[21]Id.
[22]N.J.A.C. 10:71-4.6.
[23]42 U.S.C. §1396p(c)(1).
[24]N.J.A.C. 10:71-4.10(m)1; Medicaid Communication No.12-16 (Dec. 10, 2012).
[25]Id.
[26]HCFA Transmittal No. 64 §3258.4.
[27] 42 U.S.C. §1396p(c)(1)(D).
[28]N.J.A.C. 10:71-4.10(d).
[29] 2016 SSI and Spousal Impoverishment Standards, www.medicaid.gov.
[30]N.J.A.C. 10:71-4.8(a).
[31]I.R.C. §213.
[32]I.R.C. §7702B
[33]Rev. Rul. 87-106, 1987-2 C.B. 67.
[34]I.R.C. §151; Rev. Proc. 2015-53(3)(.24).
[35]I.R.C. §151; Rev. Proc. 2015-53(3)(.24).
[36]I.R.C. §151; Rev. Proc. 2015-53(3)(.24).
[37]I.R.C. §152(c) and I.R.S. Publication 502.
[38]I.R.C. §151; Rev. Proc. 2015-53(3)(.24).
[39]I.R.C. §152(a), (b)1 and Treas. Reg. §1.151-3(a).
[40]I.R.C. §152(c).
[41]Treas. Reg. §1.152-3(c).
[42]I.R.C. §151; Rev. Proc. 2015-53(3)(.24).
[43]I.R.C. §1015.
[44]I.R.C. §1014(b)(9).
[45]I.R.C. §454(c).
[46]78 Fed. Reg. 66413 (Nov. 5, 2013).
[47] I.R.C. §3306(b)(1).
[48]I.R.S. Publication 926 (Jan. 2008).
[49]I.R.C. §121.
[50]I.R.C. §2503. (b); Rev. Proc. 2015-53(3)(.35)(1).
[51]I.R.C. §2010; Rev. Proc. 2015-53(3)(.35)(1).
[52]N.J.A.C. 18:26-5.7.
[53] I.R.C. §2010; Rev. Proc. 2015-53(3)(.33).
[54]N.J.S.A. 54:38-1.
[55]I.R.C. §1014(b)(9).
[56]N.J.S.A. 30:4D-6F
[57]N.J.S.A. 46:2B-8.13a.
[58]I.R.C. §2041(b).
[59]I.R.C. §2041(a)(2).
[60]In the Matter of Mildred Keri, 181 N.J. 50 (2004).
[61]The Health Insurance Portability and Accountability Act of 1996 (HIPAA).
[62]N.J.A.C. 11:4-34.1 to 34.13.
[63]J. M. Wiener, L. H. Illston & R. J. Hanley, Sharing the Burden: Strategies for Public and Private Long-Term Care Insurance, 6 (Brookings Institutions, 1994).
[64]Longevity and Retirement Survey Fact Sheet, American Council of Life Insurance. Survey conducted between August 12 and September 10, 1997.
[65]J. M. Wiener, L. H. Illston & R. J. Hanley, Sharing the Burden: Strategies for Public and Private Long-Term Care Insurance, 14 (Brookings Institutions, 1994).
[66]Health Insurance Association of America LTC Market Survey, 1996.
[67]I.R.C. §7702B.
[68]I.R.C. §7702B(c)(2).
[69]I.R.S. Notice 97-31.
[70]I.R.C. §7702B(c)(4).
[71]I.R.C. §7702B(b)1(C).
[72]I.R.C. §213(d)(1)(D).
[73]I.R.C. §213(d)(11).
[74]I.R.C. §213(d)(1)(D).
[75]I.R.C. §213(d)(10); Rev. Proc.2015-53(3)(.25).
[76]I.R.C. §7702B(a)(2).
[77]Rev. Proc.2015-53(3)(.44).
[78]42 U.S.C. 1395 through 1395xx; 42 C.F.R. Pts. 405 through 489.
[79]42 U.S.C. 1395 through 1395xx; 42 C.F.R. Pts. 405 through 489.
[80]2016Medicare Parts A & B Premiums and Deductible Announced, www.cms.gov.
[81]42 C.F.R. 409.31(b)(3), 409.33(b), 409.35.
[82]N.J.A.C. 5A:5.1 et seq.
[83]N.J.A.C. 5A:5-5.2 and 5A:5-5.3.
[84]N.J.A.C. 5A:5-2.1.
[85]N.J.A.C. 5A:5-5.3.
[86]N.J.A.C. 5A:5-2.2(c); Application for Admission (2014).
[87]N.J.A.C. 5A:5-3.1(a)1iv(3).
Funerals are far more expensive than many people realize, and many also do not understand that their total costs for a funeral are not payable to just one entity, the funeral home. The funeral home bill alone is apt to run about $6,000. Included in that cost is a casket ($2,300) embalming and preparation of the body ($600), funeral viewing and ceremony ($1,000), funeral director’s basic fee ($1,500) and there are also miscellaneous expenses such as an obituary, obtaining a death certificate and the hearse journey to the graveyard ($600). All funeral home expenses would be subject to change.
Many individuals wish to be buried in a cemetery. Costs associated with this service may range up to or over approximately $2,000. Those costs include buying the grave space ($1,000) and digging the grave ($600). The cost of digging is not included in the purchase of grave space. Other costs most often associated with a funeral include a headstone or grave marker. The average price of a headstone is $2,000 and the average price of a marker is $1,000.
If the funeral director acts as the coordinator between his business, the cemetery and headstone maker, costs may be even higher, as the headstone maker and cemetery may be paying the funeral director a commission for the business.
To market final expense insurance, you need to target your clientele. You may want to market to seniors, term life insurance holders, short-term insurance holders and those who are not eligible for traditional insurance. Seniors often do not purchase insurance after retiring, but they do want to cover their burial expenses. Premiums for this type of insurance are quite low.
Short-term insurance typically covers a defined period in the insurance holder’s life, like a mortgage loan term or college for the children. They often realize the benefit of having final expense insurance, just in case. And in the case of term life insurance holders, they appreciate having basic funeral cover if they happen to live longer than the term of their policy.
Working out an effective marketing strategy to reach those interested in final expenses takes planning, implementation and dedication. You are selling insurance. You likely have those traits in spades.
Benepath is the leading provider of exclusive life insurance leads. To learn more, visit http://www.benepath.net or call 1-866-368-0377
The post Smart Strategizing to Source Final Expense Leads is Highly Effective first appeared on SEONewsWire.net.]]>The post Comparing Different Options in Life Insurance first appeared on SEONewsWire.net.]]>Certain forms of life insurance can be used as an investment and estate planning tool as well. Understanding the different options, term life insurance and permanent life insurance, can help you protect your family’s economic security in the event of an unexpected death.
Term life insurance
Term life insurance is pure risk protection, and it is what many families consider to be essential. The…
by Thomas D. Begley, Jr., Esquire, CELA
- INTRODUCTION
Statistics show that approximately 60% of the population age 65 or over will require some form of long-term care. Some will be there for relatively short periods of time. These are usually stroke victims who are doing rehabilitation. A significant percentage will remain in a nursing home for an extended period of time. These are usually Alzheimer’s or Parkinson’s patients.
A statistic widely quoted is that the average stay in a nursing home is 2.9 years. This statistic is somewhat misleading, because the persons receiving rehabilitation are often discharged in six months or less. The long-term patients may stay in the nursing home for many years.
Unfortunately, as the population ages, the cost of health care is increasing, and government entitlement programs are being cut back. The cost of a nursing home in New Jersey today is approximately $125,000 – $150,000 per year. Some nursing homes are slightly less, and some are significantly more.
There are five sources for nursing home payment. They are: private pay, long-term care insurance, Medicaid, Medicare, and Veterans Administration.
- MEDICAID
2.1. Administration
This is a program administered by the states and funded by both federal and state governments. Rules vary from state to state. In New Jersey, Medicaid is administered by the County Welfare Boards. Medicaid pays for nursing home care for eligible individuals.
2.2. Eligibility
2.2.1. Citizenship and Residency
Must be a U.S. Citizen or resident alien and a resident of New Jersey.[1] An individual is not allowed to enter New Jersey solely in order to receive Medicaid.[2]
2.2.2. Categorical
Must be 65 years of age or older[3] unless blind or disabled.[4] “Blindness” means visual acuity of 20/200 or less in the better eye with use of a correcting lens.[5] “Disability” is defined as the inability to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment, which can be expected to result in death, or which has lasted or can be expected to last for a continuous period of not less than 12 months.[6]
2.2.3. Medical Eligibility
Must also be eligible from a medical standpoint. This is done by a Medicaid nurse completing a necessary form stating the diagnosis, medication, etc.
2.2.4. Income
2.2.4.1. Cap
New Jersey is an income cap state. This means that if an individual’s income exceeds $2,199 for 2015 (300% of the SSI individual benefit), the individual is not eligible for Medicaid. The solution is to establish a “Miller Trust.” By utilizing the Miller Trust, excess income is placed into the trust. Essentially, the income in the trust goes to pay for long-term care, but is not counted as income for income cap purposes. This is a legal fiction that makes no logical sense, but it works.
2.2.4.2. Types
All types of income are counted including wages, social security, pensions and annuities, alimony, interest and dividends.[7]
2.2.4.3. Name on Instrument Rule
The name on instrument rule applies in determining to whom income belongs. If there is a joint “and” account, income is deemed to belong one-half to each. If it is a joint “or” account, Medicaid takes the position that the entire account belongs to the applicant.[8]
2.3. Minimum Monthly Maintenance Needs Allowance
Medicaid Regulations provide for a Minimum Monthly Maintenance Needs Allowance which is composed of $1,966.25 per month adjusted annually on July 1 of each calendar year, plus the community spouse’s expenses for rent, mortgage, taxes, insurance and certain utilities in excess of $589.88 per month. These figures are for the period July 1, 2014 through June 30, 2015.[9] The maximum MMMNA is currently $2,980.50.[10]
2.4 Resources
2.4.1. Cap
Resources cannot exceed $2,000.[11]
2.4.2. Excluded Resources
2.4.2.1. Home
The primary residence and lot are excluded if occupied by the institutionalized person or the community spouse. Absence of more than six months creates a presumption that the home no longer serves as the principal residence.[12] However, states may establish a cap on the equity of the home. The minimum cap is $552,000 and the maximum cap is $828,000.[13]
2.4.2.2. Automobile
One automobile is exempt.[14]
2.4.2.3. Personal Effects and Household Goods[15]
2.4.2.4. Wedding Ring and Engagement Ring[16]
2.4.2.5. Medical Equipment
Needed by an institutionalized person or a member of his household.[17]
2.4.2.6. Burial Fund
A prepaid funeral is permitted provided the funeral director places the payment in an irrevocable trust for this purpose or, provided that a life insurance policy is irrevocably assigned to the funeral director.[18]
2.4.2.7. Inaccessible Resources
Resources which cannot be liquidated are considered inaccessible resources.[19]
2.4.2.8. Term Life Insurance[20]
Term life insurance is not countable since it has no cash value.
2.4.2.9. Whole Life Insurance with a maximum face of $1,500[21]
2.5. Pooling
Resources owned individually by the institutionalized spouse and the community spouse or owned jointly by the institutionalized spouse and the community spouse are pooled together to determine Medicaid eligibility. However, this rule does not apply to a spouse who entered a nursing home prior to September 30, 1989.[22] Transfers between such spouses, are permitted without resulting in any period of ineligibility.
2.6. Transfer of Resources
2.6.1. Look-Back Rule
There is a 5-year look-back for transfers of assets.[23] This means that the disposal of resources, for less than fair market value, in the 5-year period prior to the month of application must be reported at the time of the Medicaid application. Transfers made beyond the look-back period are not penalized. Transfers within the look-back period are penalized.
2.6.2. Penalty
2.6.2.1. Transfer Penalty
To calculate the penalty, divide the amount of the transfer by the average cost of nursing home care in New Jersey, $9,535, or a daily rate of $313.50, in 2015.[24] Under the Deficit Reduction Act, the penalty is calculated in partial months.[25] The penalty is the period for which the institutionalized spouse would be ineligible for Medicaid. Under federal law, the penalty is unlimited.[26]
2.6.2.2. Beginning Date
The penalty begins on the later of the date of the transfer for less than fair market value, or the date on which the individual is eligible for medical assistance under the State Plan and would otherwise be receiving institutional-level care based on an approved application for such care but for the application of the penalty period, whichever is later and which does not occur during any other period of ineligibility.[27] Therefore, the penalty begins when a person is actually receiving care, has reduced his or her resources to $2,000, and has no other penalty outstanding.
2.6.2.3. Transfers by Community Spouse
Transfers by the community spouse are also subject to the same penalty as transfers by the institutionalized individual.
2.6.3. Exemptions from Transfer Penalty
Exemptions from the transfer penalties period are:[28]
(1) Transfer to the community spouse or for the sole benefit of the community spouse.
(2) Transfers to a blind or disabled child or for the sole benefit of a blind or disabled child.
(3) Transfer of a principal residence to:
(a) Community spouse.
(b) Child under 21, blind or disabled.
- Child who is residing in the house for at least two years, and who had provided care for the parent, allowing the parent to stay at home.
- Sibling who also has an ownership interest in the house, and who is residing in the house for at least one year.
2.7. Community Spouse Resource Allowance
This guarantees the community spouse a minimum amount of resources without affecting the institutionalized spouse’s Medicaid eligibility. For 2015, this is the greater of $23,844 or one-half of the couple’s non-exempt resources not to exceed $119,220.[29] These figures are adjusted on January 1 of each calendar year.
2.8. Snapshot
The determination of a couple’s resources is made at the time the institutionalized person enters the nursing home, or at the time of the Medicaid application, whichever first occurs. This determination is used to establish the Community Spouse Resource Allowance.[30]
2.9. Taxation
In doing Medicaid planning, income tax, gift tax and estate tax consequences need to be considered, including medical deductions, personal dependent exemptions, carry-over basis, and step-up in basis.
2.9.1. Income Tax
2.9.1.1. Medical Deduction
The IRS permits an income tax deduction for medical expenses. Medical expenses include qualified long-term care services.[31] Qualified long-term care services are defined in the tax code[32] as “necessary diagnostic, preventive, therapeutic, curing, treating, mitigating and rehabilitative services, and maintenance and personal care services, which: (a) are required by a chronically-ill individual, and (b) are provided pursuant to a plan of care prescribed by licensed health care practitioner.” A chronically-ill individual is a person certified by a licensed health care provider as being unable to perform two activities of daily living for a period of at least 90 days. The activities of daily living are defined to mean “eating, toileting, transferring, bathing, dressing and continence.” The Conference Report notes “It is intended that an individual who is physically able, but has a cognitive impairment such as Alzheimer’s disease, or other form of irreversible loss of mental capacity, be treated similarly to a person who is unable to perform at least two activities of daily living.”
A taxpayer can claim an itemized deduction for unreimbursed medical expenses to the extent such expenses exceed 10% of adjusted gross income. Qualified long-term care services, insurance premiums and other eligible medical expenses may be aggregated.
Except for insulin, expenditures for medicine and drugs are deductible only if prescribed by a physician.
Capital expenditures are deductible if they are medically necessary and represent an unrecoverable sunk cost. To the extent the purchase increases the value of an asset, the expenditure is non-deductible regardless of the degree of medical need. The IRS has published a list of home modifications that are deemed not to add to a home’s value.[33]
Personal care services are tax deductible, if provided pursuant to a plan of care prescribed by a licensed health care practitioner (i.e., physician, registered nurse, geriatric care manager). Expense must be primarily related to needed assistance with any of the disabilities for which the individual qualified as chronically ill or cognitively impaired. Examples include expenses related to a patient’s dressing, grooming and bathing, if an individual is unable to perform those functions without assistance. There is no deduction for what might be termed “maid” services. These include cooking and general cleaning.
Payments for qualified long-term care services provided by an individual do not qualify as paid-for medical care if the service is provided by the spouse of the individual or by a relative, unless the service provider is a licensed professional with respect to the service.
2.9.1.2. Personal Dependent
If a person pays for more than 50% of the support of a relative, and the relative in calendar year 2015 has less than $4,000 of gross income for the year and has not filed a joint return with his or her spouse, then the person paying the support may claim the relative as a dependent on the person’s federal income tax return.[34] For purposes of calculating the 50% requirement, tax-exempt interest income, disability income and Social Security income, of the relative is counted. However, for purposes of calculating the $4,000 of gross income, tax-exempt interest income, disability income and Social Security income are not counted. If a person claims a relative as a personal exemption, the relative must not file a joint return.[35]
The personal exemption amount for taxable years beginning in 2015 is $4,000.[36]
2.9.1.3. Medical Deduction – Relative
Under the Federal tax code[37] a person can claim a medical deduction for medical expenses paid on behalf of a relative, if the person provided over half of the relative’s total support for the calendar year. The person can deduct the medical expense of the relative, even if the person cannot claim the personal dependent exemption because the relative received $4,000 or more of gross income in calendar year 2015.[38]
A relative is defined[39] as “a child or descendant of a child; stepchild; brother, sister, by whole or half-blood; stepbrother, stepsister; father, mother or ancestor of either (grandparent, great-grandparent, etc.); stepfather, stepmother; nephew, niece; brother or sister of father or mother (uncle, aunt); brother-, sister-, father-, mother-, son-, or daughter-in-law.”
The taxpayer claiming the exemption must, in combination with other taxpayers (i.e., children), provide more than half of the support of the dependent individual for the calendar year. The taxpayer claiming the dependent must have individually provided more than 10% of the individual’s support. The taxpayer must sign a Multiple Support Agreement Form 2120 if:
(1) The taxpayer provided less than half of the dependent’s support for the
calendar year; but
(2) The group provided more than half of the support; and
(3) No one person furnished more than half of that support; and
(4) The taxpayer contributed more than 10% of the support; and
(5) Each person in the group contributed more than 10% signs a written declaration (Form 2120 can be used) that he/she won’t claim that individual as a dependent for any tax year beginning in the calendar year.[40]
All of the declarations must be attached to the return of the taxpayer claiming the dependency deduction.[41]
2.9.1.4. Dependent Care Credit
This is available to a child on behalf of a dependent parent although the parent has more than $4,000 of gross income in calendar year 2015.[42] However, the parent must be physically or mentally incapable of providing self-care (i.e., cannot provide for his or her own hygiene or nutritional needs, or needs the full-time attention of another person for the parent’s safety or the safety of another). The purpose of the credit is to reimburse for care expenses related to the taxpayer leaving home to take employment. Taxpayers are usually better off taking the care expenses as a medical expense deduction.
2.9.1.5. Carryover Basis
In determining which assets to transfer and which assets to retain, consideration must be given to the fact that the donee of a gift receives a “carryover basis.”[43] This means that the cost basis of the donee is the same as the cost basis of the donor. Therefore, when the transferred assets are sold, the donee must pay capital gains tax. The best strategy is, usually, to transfer unappreciated assets to the donee, and reserve appreciated assets for the donor. That way, any gain on the sale of the appreciated assets can be offset by deducting the cost of the nursing home from income tax.
2.9.1.6. Step Up in Basis
Assets forming a part of the estate of a decedent are included in that person’s estate for federal estate tax purposes. The beneficiary of the estate receives a “step up” in basis with respect to those assets so that the beneficiary’s new basis is the fair market value of the assets as of the date of the death of the decedent.[44] The strategy, therefore, is to not sell the home during your lifetime so that your children receive a step up in basis with respect to that property on your death.
2.9.1.7. Retirement Plan
If either spouse has a retirement plan, such as an IRA or savings plan, the withdrawal of funds from that account is a taxable event. If some period of private payment to the nursing home is required, it makes sense to use the money in the retirement plan for this purpose. The medical deduction for the qualified long-term services can be used to offset the taxable income resulting from the withdrawal from the retirement plan.
2.9.1.8. Deferred Annuity
If either spouse has a deferred annuity, the withdrawal of funds from the annuity is a partially taxable event. That portion of the payment representing the initial purchase price of the annuity is a return of principal and is non-taxable, but the accrued income is taxable. If some period of private payment in the nursing home is required, it makes sense to use the money in the annuity for this purpose. The medical deduction for the qualified long-term services can be used to offset the taxable income resulting from the withdrawal from the retirement plan.
2.9.1.9. Interest on Series E, Series EE and Series I Bonds
At the time Series E, EE or I bonds are redeemed, income tax is due on the accumulated interest.[45] The same is true if the bonds are transferred to another person. Generally, it would be better not to cash in the bonds until such time as the proceeds of sale of the bonds are needed to pay for the nursing home. This is because the medical deduction for the nursing home expense will offset the taxable income from the redemption of the bonds.
2.9.1.10. Domestic Help
Withholding of Social Security and Medicare taxes is required of all employees receiving cash wages of $1,900 or more in calendar year 2015.[46] If the employee receives total cash wages of $1,000 or more in any calendar quarter in 2015, federal unemployment taxes must also be withheld. The first $7,000 of cash wages is subject to federal unemployment (FUTA) in 2015.[47] After an employee reaches $7,000 during the year, the FUTA tax is no longer required. The employer is not required to withhold federal income taxes from the wages paid to household employees unless the employee so requests and the employer agrees. The employee must give the employer a completed W-4, an Employee’s Withholding Allowance Certificate. If there is an agreement for withholding for income taxes, either party may end it by written notice to the other.[48]
If household help is obtained through an agency, the agency is generally responsible for paying the tax, but this must be verified with the agency.
2.9.1.11. Gain on Sale of Home
2.9.1.11.1. General
There is an exclusion[49] from gross income for the sale of a principal residence, if the property was owned and used by the taxpayer as the taxpayer’s principal residence for two of the five years preceding the date of the sale. The amount of the gain excluded is $250,000 for a taxpayer filing individually and $500,000 for taxpayers filing jointly. In the case of married couples, the ownership requirement can be met by either spouse, but both spouses must meet the use requirement, and neither spouse has claimed the exclusion during the two-year period ending on the date of the sale. This provision is applicable to sales on or after May 7, 1997.
2.9.1.11.2. Joint Returns
In the case of joint returns, the exclusion applies if either spouse meets the ownership and use requirements.
2.9.1.11.3. Divorce
If a taxpayer obtains property from a spouse or a former spouse incident to a divorce, the period that the taxpayer owns the property will include the period that the spouse or former spouse owned the property. A taxpayer is treated as using the property as the taxpayer’s principal residence for any period that the taxpayer has an ownership interest in the property and the taxpayers’ spouse or former spouse is granted use of the property under a divorce or separation instrument provided that the spouse or former spouse takes the property as his or her principal residence.
2.9.1.11.4. Determination of Use During Periods of Out-of-Residence Care
A taxpayer who owns property during the five-year period, but who resides in any facility, including a nursing home licensed by a state, counts the time residing in the nursing home as use of the property.
2.9.1.11.5. Residences Acquired in Rollovers Under Section 1034
If a residence is acquired under a Section 1034 rollover, the time periods during which the taxpayer owned and used the former property are counted.
2.9.1.11.6. Repeal of Non-Recognition of Gain on Rollover of Principal Residence
Section 1034 (relating to rollover of gain on sale of principal residence) is repealed.
2.9.2. Gift Tax
If transfers are made in excess of $14,000 per person per year, then a Gift Tax Return will have to be filed by April 15th of the calendar year following the date of the gift. There is an annual exclusion for gifts of $14,000 per person per year or less.[50] If a spouse consents, the annual exclusion gift may be increased to $28,000 per person per year. In addition, there is a gift tax exemption of $5,430,000 for an individual and $10,860,000 for a married couple,[51] so no tax will be due for gifts which do not exceed the amount of this gift tax exemption. There is no tax due from the recipient of the gift. The $14,000 annual exclusion gift will be indexed for inflation in the future.
New Jersey does not have a gift tax. However, New Jersey does have an inheritance tax for assets which are left to persons other than a spouse or lineal ascendants and descendants. If a transfer is made to someone other than a spouse or lineal ascendants and descendants within three years of the date of death, this constitutes a transfer which falls within the scope of the New Jersey Inheritance Tax. In that situation an Inheritance Tax Return must be filed and the appropriate tax paid.[52]
2.9.3. Estate Tax
For persons dying in calendar year 2015, there is a federal estate tax exemption of $5,430,000 for 2015. This is indexed to inflation.[53]
2.9.4. New Jersey Estate Tax
There is a New Jersey estate tax exemption equivalent of $675,000, which means that New Jersey estate tax is not due for estates of $675,000 or less.[54]
2.10. Use of Trusts and General Powers of Attorney in Planning for Medicaid Eligibility
2.10.1 Advantages of Using a Trust over Outright Gifts to Other Individuals
2.10.1.1. Control
The trust allows the grantor to direct, in advance, how the transfer of property is to be managed administered and distributed thereby allowing some control.
2.10.1.2. Risk Avoidance
By transferring assets to trusts as opposed to outright to children, the risk of a child’s creditors attaching the transferred assets or having the assets become involved in a divorce are eliminated. The child would not have declare the transferred assets on a financial aid application, if they are held by a trust.
2.10.1.3. Tax Benefits
Qualification of the trust as a grantor trust allows the grantor to be taxed on the income earned by the trust at the grantor’s marginal income tax rate even if the income is not distributed to the Grantor.
2.10.1.4. Step-up in Basis
If the trust assets are included in the grantor’s estate, the trust principal will be included in the grantor’s estate at death and will receive a step-up in basis at that time.[55]
2.10.1.5. Exclusion from Capital Gain on Sale of Principal Residence
The $250,000 – $500,000 exclusion from capital gain on the sale of a principal residence can be preserved through a properly-structured trust.
2.10.2. Trust Buster Statute
The statute provides “Any provision in a contract of insurance, will, trust agreement or other instrument which reduces or excludes coverage or payment for goods and services to an individual because of that individual’s eligibility for or receipt of Medicaid benefits shall be null and void, and no payment shall be made under this act as a result of such provision.” This statute has never been tested in court. This statute appears only to apply to instruments which provide for mandatory distributions which are then cut back when the individual applies for Medicaid. Example: “Upon the beneficiary applying for Medicaid, all income payments to him shall terminate.”[56]
2.11. Medicaid Transfers by Power of Attorney
It is necessary to explore the capacity of the client to make transfers. If the client lacks the necessary mental capacity, the transfers may, nevertheless, be accomplished through a Power of Attorney, if the document so authorizes. Under New Jersey law gifts are not permitted by an attorney-in-fact except to the extent that the Power of Attorney expressly and specifically so authorizes.[57]
The next problem with a Power of Attorney is whether the agent has authority to make gifts to himself. The agent is a fiduciary. If the Principal wants the agent to be able to self-deal when making transfers for Medicaid purposes, the Power of Attorney should explicitly authorize such gifts. However, authorization of an agent to make gifts to himself under a Power of Attorney, might be considered a general power of appointment.[58] The power of appointment would then cause the assets of the principal to be includable in the agent’s gross estate for federal estate tax purposes.[59] One solution would be to have the Power of Attorney name a special agent with authority to make transfers to the regular agent. An alternative might be through obtaining court approval. A third way might be to put conditions in the Power of Attorney as to when the agent might have the right to self-deal.
2.12. Medicaid Planning by Guardians
Guardians are authorized to make transfers for the purpose of obtaining Medicaid eligibility. In the case of In the Matter of Mildred Keri,[60] the Supreme Court held that a guardian may make transfers for purposes of obtaining Medicaid eligibility for a ward. The Court imposed a five-point test:
- The spend down plan must not interrupt or diminish an incapacitated person’s care.
- The plan involves transfers to natural objects of the person’s bounty.
- The plan does not contravene an expressed prior intent or interest.
- The plan clearly provides for the best interests of the incapacitated person.
- The plan satisfies the law’s goal to effectuate decisions an incapacitated person would make if he or she were able to act.
It is wise to consider making transfers, which are consistent with the estate planning goals of the client. If inconsistent transfers are made, they may result in litigation from beneficiaries of the estate who consider themselves to be treated unfairly.
2.13. Strategies
2.13.1 The Home
- Transfer home to Community Spouse
- Transfer home and retain life estate
- Transfer home and reserve right to use and occupy
- Family reverse mortgage
- Transfer home to grantor trust
- Sale of remainder interest in home
- Purchase life estate
2.13.2 Spend Down
- Pay off debts
- Pay for services
- Prepay real estate taxes
2.13.3 Convert Countable Assets to Non-Countable Assets
- Buy household goods or personal effects
- Make home improvements
- Purchase life estate from children
- Prepaid funeral
- Buy more expensive home
- Purchase Annuity?
2.13.4 Transfer of Assets
- Large transfer of assets
- Care Agreement
- Income Only Trust
- Children’s Trust
- Disability Annuity Trust
- Disability Annuity Special Needs Trust
2.13.5 Divorce
2.13.6 Hardship Waiver
- LONG-TERM CARE INSURANCE
Long-term care insurance can be helpful to clients who are healthy enough and affluent enough to afford it. As Elder Law attorneys, we must all be aware that Medicaid and other public assistance programs may not continue to exist in the future as we know them today. It would be a disservice to our clients to advise them to rely on these programs in the future. Clients who can afford long-term care insurance and who may be insurable, should be urged to consider purchasing the insurance. Premiums for nursing home insurance can be controlled to a certain extent by the client. The features which affect the premium cost, which can be selected by the client, are the maximum daily benefit, the elimination period, the benefit length, the inflation rider and the amount of home care covered. There are two factors that the client cannot control, which greatly affect the premium. These are the client’s age at application and health history. For this reason, clients should purchase long-term care insurance at the earliest possible time. Most experts consider that the best time to purchase long-term care insurance is about age fifty.
Congress provided tax deductions[61] and tax relief for “qualified long-term care insurance contracts.” New Jersey has regulations concerning long-term care insurance contracts.[62]
It is estimated that only 6% to 8% of the elderly have private long-term care insurance.[63] There are four reasons why people do not buy long-term care insurance:
- Lack of Awareness – The industry has not done a good job in marketing this product.
- Denial – 77% of people surveyed by the American Council of Life Insurance believed they would be healthy in retirement.[64]
- Cost – It is estimated that only 10% to 20% of the elderly can afford such insurance.[65]
- Insurability – Many people wait until they have a diagnosis before applying for long-term care insurance. At that point, they are no longer insurable. Agents estimate that approximately 25% of persons applying are rejected for health reasons.
3.1. Nursing Home Insurance Factors
3.1.1. Coverage
Policies need to be carefully analyzed to see if there are exclusions for alcohol and drug abuse related services or mental health related services. New Jersey requires that all policies include coverage for Alzheimer’s and other organic brain disorders.
3.1.2. Premiums
Premiums for long-term care insurance are high. However, the cost of the premiums is relatively low compared to the cost of payment for a nursing home. Each family must make the premium fit within its family budget.[66] The earlier the policy is purchased, the more affordable the premium.
Most long-term care insurance policies are guaranteed renewable. This means that coverage cannot be canceled by an insurance company, nor can premiums be raised on an individual basis, because of increasing age or declining health. Premiums can be raised only on a class basis affecting all policyholders with that insurance company in that class, and then only with the approval of the state insurance department. In practice, premiums are seldom, if ever, raised on this basis.
3.1.3. Daily Coverage
Persons buying long-term care insurance usually purchase a policy which reimburses their long-term care costs up to a selected maximum amount per day. For example, in this area many people purchase $350 per day of coverage. The actual average cost of a nursing home in New Jersey in 2015 averages close to $400 per day for the basic rate. Ancillary charges such as medications and incontinent care are extra. The difference is made up by the individual’s Social Security, pension or other income.
Some policies are written as a pool of money. An individual might purchase $638,750 of coverage. This is the equivalent of $350 per day coverage for five years ($350 x 365 days x 5 years = $638,750).
3.1.4. Gatekeepers
Companies can sell qualified or non-qualified policies. Qualified policies offer certain safe harbor tax benefits. The primary advantage of a tax-qualified policy is that the benefits paid under the policy are clearly not taxable income. The disadvantage of a tax-qualified policy is that the figures for coverage are more difficult to achieve. Many agents sell only tax-qualified policies.
For a long-term care insurance policy to be a qualified contract, it must provide for benefit eligibility to be determined by meeting a chronically-ill individual standard. The term “chronically-ill individual” means an individual who has been certified by a licensed health care practitioner as being unable to perform at least two of the activities of daily living (ADLs) and whose disability is anticipated to last for a period of at least 90 days due to a loss of functional capacity; or, requiring substantial supervision to protect such individual from threats to health and safety due to severe cognitive impairment.[67] There are two triggers under the new law. The ADL Trigger and the Cognitive Impairment Trigger.
3.1.4.1. ADL Trigger
The activities of daily living (ADLs) include eating, toileting, transferring, bathing, dressing and continence. The long-term care insurance policy must take into account at least five of such activities. The inability of the insured person to perform two of the five or two of the six ADLs without substantial assistance triggers eligibility under the policy.[68] The 90-day period is not a waiting period. The 90 days can be prospective and does not affect the elimination period.
3.1.4.2. Cognitive Impairment Trigger
Severe cognitive impairment means a deterioration or loss in intellectual capacity that is measured by clinical evidence and standardized tests which reliably measure impairment in short- or long-term memory; orientation to people, place or time; and deductive or abstract reasoning. The deterioration or loss must place the individual in jeopardy of harming himself or others and, thereby, require substantial supervision by another individual. A person who is physically able but has cognitive impairment such as Alzheimer’s Disease or another form of irreversible loss of mental capacity is treated similarly to an individual who is unable to perform (without substantial assistance) at least two ADLs.
The IRS defines substantial assistance as “hands-on assistance and stand-by assistance.”[69] “Hands-on assistance” means the physical assistance of another person without which the individual would be unable to perform the ADL. “Stand-by assistance” means the presence of another person within arms’ reach of the individual that is necessary to prevent, by physical intervention, injury to the individual while the individual is performing the ADL (such as being ready to catch the individual, if the individual falls while getting into or out of the bathtub or shower as part of bathing, or being ready to remove food from the individual’s throat, if the individual chokes while eating). An individual is chronically-ill only if a licensed health care practitioner has certified that the individual is unable to perform (without substantial assistance from another individual), at least two ADLs for a period anticipated to last at least 90 days due to loss of functional capacity. A licensed health care practitioner is a physician, registered professional nurse, licensed social worker, or other individual who meets requirements that may be prescribed by the IRS.[70]
3.1.5. Inflation Provisions
Nursing home costs in New Jersey increase faster than the general rate of inflation. Some homes increase annually, some more often. A daily benefit of $250 purchased today may be sufficient now, but may be inadequate five years from now when the client enters a nursing home. Therefore, inflation coverage should be considered.
Some policies have inflation riders which offer increases based on the Consumer Price Index (CPI). Insureds are offered the right to purchase additional coverage at their attained age. Premiums increase when high coverage is elected. Other companies offer policies with an inflation rider which increases coverage automatically at 5% per year, either on a simple or a compounded basis. Automatic inflation riders keep premiums level as benefits increase. Nursing home costs increase on a compounded basis, so an inflation rider, which increases on a compounded basis, is best.
3.1.6. Pre-Existing Conditions
New Jersey LTC regulations define a “pre-existing” medical condition as any condition for which the applicant received advice or treatment during the six month period prior to making application. Further, if an applicant is accepted, a company cannot impose a pre-existing medical condition waiting period on the insured person for more than six months from the effective date of coverage. Persons with diagnosed Alzheimer’s or Parkinson’s Diseases will always be denied coverage. However, persons with histories of cancer, heart disease or similar conditions are often able to obtain coverage. The insurance companies generally like to see a period of time during which it is clear that the condition is controlled. In some instances, the coverage is obtained at regular rates. In other instances, the coverage is granted, but the client is rated, which means that the client pays a higher insurance premium or is offered a shorter benefit length or a longer deductible.
3.1.7. Benefit Length
The benefit length is the period of time which the insurance company will pay after the client starts receiving benefits for long-term care. Coverage is available for two years, three years, four years, five years, six years or unlimited. The longer the term of coverage selected, the more expensive the premium. Attorneys often advise clients to obtain three or four years of coverage. This enables the client to do public assistance planning and, under current law, all or most of the lookback period is covered by insurance. Because Medicaid, as we know it today, may not be available in the future, it may be well to advise clients to purchase as long a term of coverage as they are able to afford.
3.1.8. Guaranteed Renewability
It is important that a policy be guaranteed renewable. If a client purchases a policy when healthy, and is later diagnosed as having a condition such as Alzheimer’s, the client needs to have the assurance that his coverage cannot be canceled or his premium individually raised. Federal law now requires that qualified policies be guaranteed renewable.[71]
3.1.9. Home Heath Care
Most companies have comprehensive, “bundled” policies which include home health care. Some companies have home health care riders which can be added to the basic nursing home/assisted living facility coverage. At least one company has a policy which covers only home health care. Clients do not want to spend time in nursing homes. They would much prefer to stay at home. It is important to obtain home health care coverage so that the family can afford to keep the client at home.
3.1.10. Waiver of Premium
Some policies waive the payment of premiums when benefits are being received or have been received for a given period of time, typically 90 days. Premiums normally resume once benefits stop being paid.
3.1.11. Case Management
Some long-term care insurance policies offer a benefit option referred to as “case management.” Under case management a professional oversees the care and the services the insured would receive. The case manager may be an insurance company employee. This is managed care for long-term care insurance, and should be carefully analyzed. Other policies allow the client to choose his own case manager.
3.1.12. Adult Day Care and Respite Care
Most LTC policies provide benefits for adult day care services and respite care. Respite benefits allow for immediate coverage while an informal caregiver (wife, daughter, etc.) gets a break.
3.1.13. Quality of the Insurance Company
The quality of the insurance company is important. After paying premiums for a number of years, the client expects the insurance company to pay the claim when made. Because of the experience of Executive Life, Mutual Benefit Life and other insurance carriers which have experienced financial difficulties, it is wise for the attorney to counsel the client to look at the ratings of the insurance companies. Ratings services include the following:
- Moody’s Investors Service
99 Church Street
New York, New York 10007
Telephone: (212) 553-1658
Fax: (212) 553-4062
Website: www.moodys.com
- Standard and Poor’s
25 Broadway
New York, New York 10004
Telephone: 212-208-1527
Fax: 212-208-8571
- Duff and Phelps
55 East Monroe Street
Suite 3500
Chicago, Illinois 60603
Telephone: 312-368-3157
- A.M. Best
Ambest Road
Oldwick, New Jersey 08858
Telephone: 908-439-2200
Fax: 908-439-3296
- Weiss Ratings
4176 Burns Road
Palm Beach Gardens, Florida 33410
Telephone: 561-627-3300 or 1-800-289-9222
Fax: 561-625-6685
3.2. Policy Features
The features of the policy which determine cost are:
3.2.1. Daily Benefit
The daily benefit is the maximum amount of money which the insurance company will pay to the insured for each day of long-term care services.
3.2.2. Elimination Period
The elimination period is like a deductible. It is the number of days which the client is willing to pay privately before the insurance begins. Insurance is available which will pay from the first day of care. Other options are a twenty-day elimination period up to a 100-day elimination period or even 365-day elimination period. The longer the elimination period, the lower the premium. A 100-day elimination period usually makes sense. It can reduce the premium substantially at older ages, and Medicare and Medi-Gap Insurance may cover the 100 days, if the patient meets the Medicare requirements for a skilled nursing facility. If not, the client self-insures.
3.2.3. Benefit Length
The benefit length is the number of years the insurance company will pay the nursing home. The term begins after the client enters the nursing home.
3.2.4. Inflation Rider
A 5% compounded inflation rider is the most expensive, but affords the best coverage because the increases in nursing home rates are compounded.
3.3. Taxation
3.3.1. Income Tax Deduction
Under HIPAA, qualified long-term care insurance premiums are deductible from federal income tax as a medical expense up to certain limits.[72]
While payment for medical services provided by relatives does not ordinarily qualify for a medical expense deduction under I.R.C. §105(b), reimbursements through insurance to a relative for such care do qualify.[73] For example, if Dad, who has Alzheimer’s, hires his daughter, a licensed practical nurse, to care for him, payments from father to daughter are not tax deductible. However, if the insurance company pays the daughter, the payments are not counted as income to the father.
Eligible long-term care insurance premiums for a qualified long-term care insurance contract up to the following dollar limits for 2015 qualify as tax deductible medical expenses.[74]
Attained Age by Yr. End Annual Limit on Prem. Ded.[75]
40 or less $380
41-50 $710
51-60 $1,430
61-70 $3,800
Over 70 $4,750
Unfortunately, this deduction is largely illusory, because it is subject to the overall 10% floor of adjusted gross income on deduction of medical expenses. Most people who are healthy enough to purchase long-term care insurance do not have enough other medical expenses to deduct so that they can hit the 10% threshold. It is likely that the tax deduction will be attained only if one spouse is ill and the other spouse has the insurance.
3.3.2. Exclusion From Taxation of Benefits Under Qualified Contracts
Amounts received as benefit payments under a qualified long-term care insurance contract are treated as amounts received for personal injury or sickness, and as reimbursement for expenses actually incurred for medical care and are, therefore, excluded from income for tax purposes.[76] On flat indemnity policies, there is a limitation of $330 per day for 2015.[77] Amounts greater than this are tax-free to the extent they cover actual costs. The $330 figure will be increased to reflect inflation. It is not clear whether benefit payments made under non-qualified contracts are excludable from gross income.
- MEDICARE[78]
4.1. Requirements
Medicare will pay for nursing home care provided two requirements are met:
- Hospital. The patient must spend three days in the hospital and must be admitted to a nursing home within 30 days after discharge from the hospital.
- Skilled Care. The patient must be admitted to the nursing home for skilled care on a daily basis. Skilled care is defined as services that are so inherently complex that they can only be provided effectively by skilled individuals or under the supervisor of skilled personnel.[79]
4.2. Coverage
Medicare will pay for up to 100 days. However, there is co-insurance from the 21st to 100th day. For 2015, the co-insurance rate is $157.50 per day[80], which must be paid by either the patient or a Medi-gap policy. The 100 days of coverage are not guaranteed. This is a maximum, not a minimum. If the patient is receiving rehabilitation and hits a plateau, Medicare will be stopped.
- VETERANS BENEFITS
5.1. Federal
A Veteran with a service-connected disability of 70% or more is entitled to free lifetime nursing coverage regardless of means. Veterans who do not have a service-connected disability are means-tested as to payment. The VA does contract with public and private nursing home facilities, in addition to using VA facilities.[81]
5.2. State
5.2.1. General
New Jersey Veterans Administration operates three Old Soldiers’ Homes for New Jersey Veterans and their families. They are located in Paramus, Edison and Vineland. Veterans, spouses of Veterans, surviving spouses, and certain parents may be eligible.[82]
5.2.2. Fee
The Adjutant General determines an “Established Rate” each year. The individual pays a portion of the cost of care based on their monthly income and ability to pay.[83] The VA monthly nursing home fee is 80% of the resident’s net income, not to exceed the Established Rate. In addition, 12% of the remaining 20% of the resident’s net income (maximum $20 per month) is set aside in a Welfare fund at the institution, and the remaining balance is placed in a personal needs account for the resident. Net income is calculated after the deductions discussed below. Income includes all income except for service-connected disability compensation. If a resident sells his home and a portion or all of the proceeds from the sale are not reinvested in a primary residence, any income earned from the investment of any or all of the proceeds will be counted as income.[84]
Certain deductions are permitted to the community spouse. For example, the community spouse receives a flat $700 exemption for food, transportation, clothing, telephone and home maintenance.[85] In addition, deductions requiring verification are permitted for rent, first mortgage payments, real estate taxes and insurance, heat and electric, water and sewer, life insurance for burial accounts, and other extraordinary expenses.
5.2.3. Guardianship or Advanced Directive
A Guardianship or Advanced Directive is required for admission.
5.2.4. Resources
The resource limit for a single person is $24,000, and for a married couple is $110,000.[86]
5.2.5. Look-Back
The Veterans look-back period is effectively 36 months.[87]
- CONCLUSION
Financing nursing home care in New Jersey is a complex enterprise. The rules change quickly and are not always written. Medicaid case workers often feel they have an obligation to protect the public purse, rather than to assist the applicant by suggesting various strategies. Case workers are sometimes poorly trained and do not know various planning techniques. Planning for Medicaid financing of nursing home care offers an excellent opportunity for elder law attorneys to be of assistance to their clients.
J:\articles\Medicaid\2015\Financing Nursing Home Care in NJ 2015
Rev. 3-16-15
[1]N.J.A.C. 10:71-3.2.
[2]N.J.A.C. 10:71-3.4.
[3]N.J.A.C. 10:71-3.9.
[4]N.J.A.C. 10:71-3.10.
[5]N.J.A.C. 10:71-3.12(c).
[6]N.J.A.C. 10:71-3.12(a).
[7]N.J.A.C. 10:71-5.1.
[8]N.J.A.C. 10:71-4.1(d)2.
[9]N.J.A.C. 10:71-5.7(c); 79 Fed. Reg. 3593 (Jan. 22, 2014).
[10]2015 SSI and Spousal Impoverishment Standards, www.medicaid.gov.
[11]N.J.A.C. 10:71-4.5(c).
[12]N.J.A.C. 10:71-4.4(b)1i.
[13]42 U.S.C. §1396p(f); 2015 SSI and Spousal Impoverishment Standards, www.medicaid.gov.
[14]N.J.A.C. 10:71-4.4.
[15]N.J.A.C. 10:71-4.4(3).
[16]N.J.A.C. 10:71-4.4(b)3ii.
[17]N.J.A.C. 10:71-4.4(b)3iii.
[18]N.J.A.C. 10:71-4.4(9).
[19]N.J.A.C. 10:71-4.4(b)6.
[20]N.J.A.C. 10:71-4.4(b)4.
[21]Id.
[22]N.J.A.C. 10:71-4.6.
[23]42 U.S.C. §1396p(c)(1).
[24]N.J.A.C. 10:71-4.10(m)1; Medicaid Communication No.12-16 (Dec. 10, 2012).
[25]Id.
[26]HCFA Transmittal No. 64 §3258.4.
[27] 42 U.S.C. §1396p(c)(1)(D).
[28]N.J.A.C. 10:71-4.10(d).
[29] 2015 SSI and Spousal Impoverishment Standards, www.medicaid.gov.
[30]N.J.A.C. 10:71-4.8(a).
[31]I.R.C. §213.
[32]I.R.C. §7702B
[33]Rev. Rul. 87-106, 1987-2 C.B. 67.
[34]I.R.C. §151; Rev. Proc. 2014-61(3)(.24).
[35]I.R.C. §151; Rev. Proc. 2014-61(3)(.24).
[36]I.R.C. §151; Rev. Proc. 2014-61(3)(.24).
[37]I.R.C. §152(c) and I.R.S. Publication 502.
[38]I.R.C. §151; Rev. Proc. 2014-61(3)(.24).
[39]I.R.C. §152(a), (b)1 and Treas. Reg. §1.151-3(a).
[40]I.R.C. §152(c).
[41]Treas. Reg. §1.152-3(c).
[42]I.R.C. §151; Rev. Proc. 2014-61(3)(.24).
[43]I.R.C. §1015.
[44]I.R.C. §1014(b)(9).
[45]I.R.C. §454(c).
[46]78 Fed. Reg. 66413 (Nov. 5, 2013).
[47] I.R.C. §3306(b)(1).
[48]I.R.S. Publication 926 (Jan. 2008).
[49]I.R.C. §121.
[50]I.R.C. §2503. (b); Rev. Proc. 2014-61(3)(.35)(1).
[51]I.R.C. §2010; Rev. Proc. 2014-1(3)(.35)(1).
[52]N.J.A.C. 18:26-5.7.
[53] I.R.C. §2010; Rev. Proc. 2014-61(3)(.33).
[54]N.J.S.A. 54:38-1.
[55]I.R.C. §1014(b)(9).
[56]N.J.S.A. 30:4D-6F
[57]N.J.S.A. 46:2B-8.13a.
[58]I.R.C. §2041(b).
[59]I.R.C. §2041(a)(2).
[60]In the Matter of Mildred Keri, 181 N.J. 50 (2004).
[61]The Health Insurance Portability and Accountability Act of 1996 (HIPAA).
[62]N.J.A.C. 11:4-34.1 to 34.13.
[63]J. M. Wiener, L. H. Illston & R. J. Hanley, Sharing the Burden: Strategies for Public and Private Long-Term Care Insurance, 6 (Brookings Institutions, 1994).
[64]Longevity and Retirement Survey Fact Sheet, American Council of Life Insurance. Survey conducted between August 12 and September 10, 1997.
[65]J. M. Wiener, L. H. Illston & R. J. Hanley, Sharing the Burden: Strategies for Public and Private Long-Term Care Insurance, 14 (Brookings Institutions, 1994).
[66]Health Insurance Association of America LTC Market Survey, 1996.
[67]I.R.C. §7702B.
[68]I.R.C. §7702B(c)(2).
[69]I.R.S. Notice 97-31.
[70]I.R.C. §7702B(c)(4).
[71]I.R.C. §7702B(b)1(C).
[72]I.R.C. §213(d)(1)(D).
[73]I.R.C. §213(d)(11).
[74]I.R.C. §213(d)(1)(D).
[75]I.R.C. §213(d)(10); Rev. Proc. 2014-61(3)(.25).
[76]I.R.C. §7702B(a)(2).
[77]Rev. Proc. 2014-61(3)(.44).
[78]42 U.S.C. 1395 through 1395xx; 42 C.F.R. Pts. 405 through 489.
[79]42 U.S.C. 1395 through 1395xx; 42 C.F.R. Pts. 405 through 489.
[80]Medicare 2014 &2015 Costs at a Glance, www.medicare,gov.
[81]42 C.F.R. 409.31(b)(3), 409.33(b), 409.35.
[82]N.J.A.C. 5A:5.1 et seq.
[83]N.J.A.C. 5A:5-5.2 and 5A:5-5.3.
[84]N.J.A.C. 5A:5-2.1.
[85]N.J.A.C. 5A:5-5.3.
[86]N.J.A.C. 5A:5-2.2(c); Application for Admission (2014).
[87]N.J.A.C. 5A:5-3.1(a)1iv(3).
The post FINANCING LONG-TERM CARE IN NEW JERSEY first appeared on SEONewsWire.net.]]>If your message doesn’t contain a call to action like, “Click here for further information on term life insurance,” potential customers have nothing to do. So of course they leave.
If you want to keep the relationship alive and fresh, get to your point right away. If you are doing a survey for a product, say so up front. If you are fishing for information to find an opening to talk about Medicare supplements, ask an indirect question. Ask the customer how they feel about recent changes in Medicare. If they do not understand it or know they lack coverage, you have found a concrete way to help them.
This isn’t hard work. It’s smart work.
Benepath is the leading provider of exclusive life insurance leads. To learn more, visit http://www.benepath.net or call 1-866-368-0377
The post Getting your message seen online: Part 6 first appeared on SEONewsWire.net.]]>
In any divorce, each party has to be smart and also realistic in terms of what the new reality of their life will be post-separation and post-divorce. The money that was spent on a life together is now being split to maintain 2 separate lifestyles. Before you sign your marital settlement agreement, consider these potential mistakes that you will want to avoid:
- Settling for less in the division of property and assets than you are entitled to in order to obtain more child custody or visitation.
These are 2 separate issues and one should not be contingent on the other.
- Underestimating your monthly budget and needs.
You must be realistic in what you will need to not only financially survive but live a semblance of what your marital standard of living was.
- Trusting your attorney to know or determine what is financially best for you.
Although your attorney can offer you sound legal advice and information, you must also be knowledgeable of your finances and take responsibility for your financial future.
- Making money decisions one-at-a-time.
It is best in divorce proceedings to consider the big picture of what the impact of child support, spousal support and division of property will be as they relate to taxes, inflation, and related issues. You should strive to work out a “global” settlement on all financial issues together whenever possible.
- Failing to prepare for future problems.
Although there is generally no legal requirement for life or disability insurance to be required as a guarantee on child and spousal support in the event of death or inability to work. However, given that term life insurance is generally very affordable nowadays, an agreement that the payor of support will maintain sufficient life insurance to act as a guarantee on the support is reasonable and smart. Generally, the party paying support wants to make sure that their children (or hopefully spouse too) are protected in such an event. In the alternative, such a life insurance policy can be maintained at the expense of the supported party (payee) for the same reasons.
- Failing to work out how debts and liabilities will be paid off.
In most divorces, it is best for the parties to try to pay off all debts of the marriage from the assets in the divorce so that both parties can start out with a clean slate. Otherwise, failing to do so can come back to haunt you. If you have joint debt with your spouse, most creditors are going to come after both of you if such debt is not paid and could care less about what your divorce judgment says.
- Not determining how to handle post-divorce financial matters.
The division of pension and other retirement benefits as well as transfer of accounts and obtaining health insurance after you no longer qualify to be on your spouse’s coverage are several issues that need to be addressed in your divorce judgment, so that there is no doubt about how they will be handled. Avoiding vagueness and ambiguity regarding such issues will save you a lot of headache after your divorce is completed.
For further information or to schedule a consultation with Orange County divorce attorney Gerald Maggio of The Maggio Law Firm, please call (949) 553-0304 or visit www.maggiolawfirm.com. The Maggio Law Firm is an experienced divorce and family law firm serving the Orange County and Riverside areas and neighboring counties, serving clients with legal issues including divorce, legal separation, prenuptial agreements, divorce mediation, and other family law issues.
The business of death is expensive, and potential clients would be well-advised to carry final expense life insurance to protect their families from the final bill.
These days, funeral costs can run as high as $10,000, paid out in three parts to a funeral home, a cemetery and a headstone manufacturer. It can be a significant financial burden for a person to pay such bills all at once, especially while grieving. It only makes sense for families to have a final expense insurance policy in place to cover those expenses. As an agent, you have an opportunity to work the leads you receive and to help educate people on the reality of the costs for end-of-life services and burial.
Not sure how to find final expense leads? There are number of ways, and one of them is to generate your own, but in general, your best source will be a lead generation company. Before you buy any leads, determine which demographics you wish to approach and make a list. That list may include seniors, short-term insurance policyholders, term life insurance holders and perhaps those who are not eligible for traditional insurance.
Most seniors do not buy life insurance once they have retired, but they do see the value in insuring their funeral and burial expenses. Since policy coverage is relatively inexpensive, you have a good selling point to make conversions. Short-term holders usually have insurance in place for particular life events, such as the duration of a mortgage.
Many of these potential clients are interested in insuring their final expenses as well When term life insureds outlive their policy terms, they like to have burial coverage in place. And those who cannot get traditional insurance tend to depend on their savings. Final expense insurance is a good option for them to avoid spending their inheritance and estate savings on their own burial costs.
Benepath is the leading provider of exclusive health insurance leads to agents across the United States. To learn more, visit http://www.benepath.net or call 1-866-368-0377
The post You Can Generate Your Own Final Expense Leads, but Why Bother? first appeared on SEONewsWire.net.]]>Before getting a life insurance quote, take the time to compare prices. Do not rush from company to company, searching for the cheapest price. Fact is, prices vary and no one insurance company is able to offer the best premiums for every situation or person. It takes time to find what you want and it also takes patience to winnow out the ideal policy to suit your needs. You will find yourself asking many questions, and that is the only way to completely understand what you are buying and why you are paying the price quoted. Do not skip this important part of the process.
Those who want to buy cheap life insurance typically end up not buying enough coverage. That means should you die suddenly, there may not be enough money in the policy to replace the pay check your family counted on. Ask yourself this question before you buy life insurance: How much capital would your dependents need to live the life they have become accustomed to and to move forward in safety and confidence? If you do not know the answer to that question, find an income replacement calculator online. It will outline how much insurance is needed to provide your family with the income you earned while alive.
Do not buy the wrong kind of life insurance. The most inexpensive policy available that offers income protection is term life insurance. Do not settle for anything else.
Above all else, get more than one opinion on what life insurance policy would work for you. The agent’s commission is already built into the policy premiums, so it does not matter what insurance company you buy a policy from. However, if you have advice from several agents, you can determine what would work the best for you, based on the advice provided. Never buy the first policy you find and always compare advice.
The post There Are Four Common Mistakes People Make When Buying Life Insurance first appeared on SEONewsWire.net.]]>The problem is – how to determine which type of life insurance is the best for them? What are the options? The prices? How does the coverage differ? All are good questions, but before you lay it all out on the line for potential customers, encourage them to get started on a search for whole or term life insurance. Have them explore the options of each type of policy. This allows them the chance to put together a list of questions to ask you.
Just for the record, a “term” life insurance policy is for a set number of years, which is any number of your choosing, based on what works the best for your clients. The word “term” means it expires at the end of the term chosen, not at the end of the person’s life. That being said, the term may be extended after it matures. Just remember, that if the customer chooses to renew, or extend the policy, chances are that the premiums will be higher. If the policyholder passes away during the term of the policy, those named as beneficiaries receive the benefits of the policy.
Term-life premiums are relatively low to begin with, largely because the policies only offer death benefits, which means premiums are dependent on how long a policy runs. Thus, for a short term, there are lower premiums.
On the other side is a whole-life policy, one that extends to the end of an individual’s life. As expected, there are higher premiums for this kind of coverage, because there is cash value on the premiums paid. If the customers want to ensure that premiums stay the same for the run of the policy, they should consider buying a fixed term-life policy.
A bit confusing to say the least, but if you take the time to explain the various options you have available for your clients for both types of policies, they get a feeling of what would suit their lifestyle and point-of-view. Term coverage can be a good choice for the younger crowd, due to lower premiums and the ability to get involved in investments, which would grow their portfolio. Also the death benefit is tax-free.
Whole life does not offer the benefit of being able to save on premiums and invest the savings, and there are taxes to be paid on the cash value, as that money is considered to be income. However, what your customers choose is solely dependent on what they want to accomplish, the type of coverage they are comfortable with and what each policy provides when they pass on.
Benepath is the leading provider of exclusive life insurance leads. To learn more, visit http://www.benepath.net or call 1-866-368-0377
The post Whole or term-life insurance – which is best for your clients? first appeared on SEONewsWire.net.]]>Not many people think too much about buying term life insurance online versus in person. In fact, when they get online to ask for quotes, they are looking for a deal, not considering how an insurance company sets its policy prices. Here is a bit of information that might come in handy for you and make your life a little be less expensive when it comes to term life insurance.
Most of us use the Internet to pay our bills online, check car insurance rates, trade stocks or whatever other financial transaction that they need to do. And we all know you can certainly track down term life insurance quotes online. However, did you know that when term life quotes were first uploaded to the Internet that term life insurance rates dropped by almost 50 percent? They dropped because the big boys on the block now had to compete with one another because everyone now had their rates out in the open where all and sundry could see them.
It used to be that if someone wanted this type of insurance, they only saw the price listed on a proposal brought to them by an agent. It was not easy to compare rates unless you had more agents come to your home, write offers and provide a quote. In short, price transparency —- thanks to instant quoting/comparing —- has changed the pricing of term life insurance.
By the way, this drop in pricing is also applicable to health insurance quotes online. The prices have dropped for the same reason, competition. Look for a reputable insurance company, one that deals with a reputable network. Compare pricing online by asking at least three providers for quotes, whether you are searching for health insurance or term life insurance.
Price comparisons are the gold in your online shopping journey for insurance. Take the time to cross check and compare and you will find a deal. It just takes a bit of patience, and by all means, if you do not understand what a quote includes or why it seems to be different that other companies, pick up the phone and ask. It’s your money, your health/term life insurance policy and you want to know as much as you can before you buy.
Learn more at benepath.com
Despite what you may think, older Americans can buy term life insurance.There is a myth that older people cannot… http://p.ost.im/dpwwAJ
The post Life insurance rates vary for seniors first appeared on SEONewsWire.net.]]>There is a myth that older people cannot get term life insurance. That is not true, as elder Americans can and do buy term life insurance policies in their sixties to early seventies. In fact, in some states you may be insured until the age of 75. Generally speaking though, the mean age for this kind of insurance is 70, but when you want to buy it, simply ask the agent for any parameters that exist. They can offer you various options to make an informed choice.
Just to be clear, it is difficult to obtain insurance on an on-going basis once an individual has reached the age of retirement. Nonetheless, term life insurance is a great option to cover you for death expenses. So, what do you need to consider when you are contemplating buying term life insurance?
Consider how long your children would need your income, how long your spouse would depend on your income until their social security and/or retirement benefits begin arriving and calculate when your mortgage could possibly be paid off. Most individuals definitely want to make sure their mortgage expenses are taken care of.
The other benefits of term life insurance is that it covers death expenses, can take care of the transfer of a business to your next of kin, provide the cash for estate taxes, and of course, as discussed above, handle mortgage expenses.
Now that you have decided you would be interested in purchasing term life insurance, what information do you need to provide your agent? Usually the facts an insurance company needs to know are how is your overall health, and what is your family medical history, how much you weigh, whether you are female or male, how tall you are, your medical history, including drug use, cholesterol levels and blood pressure and if you have pre-existing conditions, what are they? Typically, you do need a physical, but there are plans that do not require a medical. You just need to choose which one suits your circumstances the best.
Before you research policies, write down what you need. Call an insurance agent and ask questions. This is the quickest way for seniors to find what they need, without having to spend too much time online getting multiple quotes —- than may be confusing. It’s not hard to buy term life insurance when you are older, and it should not be a painful process. Find an agency and agent that understands your needs and work closely with them to get what you want.
Learn more about life insurance at http://www.benepath.com.
People buy things from your insurance website because they feel they know you, appreciate your experience, your education, credentials, your style of writing and explaining insurance policies or they like your smile. Whatever the reason people do buy insurance from you, you can be certain it was not your logo or the pictures of the inside of your office. People like dealing with people. It’s the personal touch that makes a difference.
In short, you do not want your insurance website to end up being a buffer or barrier between you and your potential customers. You want it to be an extension of who you are. This is even more important if you have more than one insurance agent on staff. Each person that deals with the public needs to be known. You want everyone in the office to be a part of your online presence.
If you want to score large in the insurance industry, you make sure people know who you are personally. Your hobbies, the organizations you belong to, why you chose to sell Medicare supplements or car insurance or term life insurance or health insurance. You want them to see you doing the things you love, even if that is riding a horse in back country trails. The real you is what you want to convey to potential customers.
In sharing a part of who you are with those who visit your insurance website, you have opened the door to more personal contact; heightened the potential for visitors to stay and get to know you and buy something. By showing people who you are, the real you, you have a cutting edge advantage over your competition, because you become more personable, approachable and someone people want to know better. The advantages to this strategy? You likely sell more insurance. It does not get any better than that.
Ready to Quote is an insurance marketing company focusing on search engine marketing and <a href="http://www.readytoquote.com“>insurance websites. Learn more at http://www.readytoquote.com/ or call 1.800.504.8593
The post Your Insurance Website Is Really About You first appeared on SEONewsWire.net.]]>“Term life” is an insurance policy for a fixed period of time that you decide upon. You pay premiums, but they are far less expensive than other kinds of life insurance plans. If you make it a point to find out what factors affect the price of premiums, you can do the math and see if you are able to reduce your premium costs even further. It is definitely possible, provided you take the time to shop around for a deal.
Many people are not fully aware that term life insurance is really a death benefit — money that goes to your family should you die. You want to live a rich and rewarding, long life, and to do this you need to pay attention to your lifestyle habits, as they affect the price of your premiums.
If you smoke, drink alcohol, take recreational drugs or are obese, your policy will likely cost more, as people who do smoke, drink, take drugs and are morbidly obese are at double the risk to die earlier than those who abstain.
Another factor that determines premiums relates to pre-existing health conditions such as cancer or arthritis. People with these diseases can find term life insurance, although it often takes longer to do so and their premiums tend to be higher due to their health issues.
Along with pre-existing health conditions, insurance companies also take your family history into consideration. This means they ask if there are any hereditary diseases that run in your family, such as heart disease. Although there is not much you are able to do about a hereditary health issue, you can make the best of what you have and strive to stay as healthy as possible.
Work in a high-risk occupation? That affects life insurance premiums as well, as some jobs may result in accidental death. For instance, those who work in a facility handling toxic waste, work in the construction industry, law enforcement, or fight fires.
In the final analysis, term life insurance policies are good for anyone, as they are simple to understand and not complicated. If you are not sure they are for you, ask an agent and find out more information.
The post Term Life Insurance is Cost Effective and Simple first appeared on SEONewsWire.net.]]>Term coverage is, once again, temporary life insurance for a designated number of years, which usually ranges anywhere from one year up to 30 years. However, it may also last until you reach 65 or 70. If you outlive your policy, coverage ends. If you pass on while your policy is still in force, your beneficiary gets the death benefit.
Not familiar with instant quoting insurance websites? Call a local, licensed agent or if you’re a bit more technologically adept, call the companies listed online directly. Or, surf a website that offers multiple quotes. This gives you access to an enormous network of insurance carriers and there is something for everyone.
Click here and get a health insurance quote, visit http://www.benepath.com
Term life insurance serves a valuable purpose in everyone’s life. It is there to cover off those “what happens if” moments we all face when we contemplate our mortality. Stick local and you also get better personal service, something we badly need in this isolating world of technology.
Click here and get a health insurance quote, visit http://www.benepath.com
There are thousands of websites online that can provide you with life insurance quotes. Chances are you won’t want to visit them all, but looking at least four of them is a good way to start, and a way to find the information you need to make an informed buying decision. Many people are confused when they get on the Internet to begin looking for term life insurance quotes. Why? Because they do not understand some of the terms.
First of all, what do you get when you ask for quotes for term life insurance? What you are asking for is pricing for temporary life insurance. It will provide you with various options to pay, varying length of coverage, options for premium payment, names of companies quoting and their financial strength rating. Financial strength ratings are good to know, as it tells you how solid the insurance company is financially —- meaning whether they will pay on a claim or not and be there when you need them.
Do you know what term coverage is or means? Term coverage is, once again, temporary life insurance for a designated number of years, which usually ranges anywhere from one year up to 30 years. However, it may also last until you reach 65 or 70. If you outlive your policy, coverage ends. If you pass on while your policy is still in force, your beneficiary gets the death benefit.
If you are not familiar with instant quoting insurance websites, you might wonder how to get your free quotes. For those who don’t like computers, you can call a local, licensed agent or if you’re a bit more technologically adept, call the companies directly that are listed online. You may also surf a website that offers multiple quotes. This gives you access to an enormous network of insurance carriers and there is always something for everyone’s needs.
Now that you have the quotes, just what to do you do with them? You compare them and to do that you need to consider several things, such as: How much coverage do you need? How many years do you want the coverage? What can you comfortably afford to pay? Most people want to save money. So, to do that, get multiple quotes before selecting a plan. Check out the carrier’s financial strength rating. Stick with your budget, no matter what and buy your policy as soon as possible, before the rates go up.
To learn more click here and get a health insurance quote, visit http://www.benepath.com
Even if you don’t really think you would convert your policy, it only makes sense to have that option available to you, in case something in your life changes and you need to convert it. And we all know how unpredictable life can be on occasion. So just be prepared by having various options at the ready for the future.
Is converting a rigmarole? No, actually it isn’t. You need to find out if you can convert, because it lets you do that without having to offer proof that you’re in good health. So should you develop a serious illness in the months just prior to the end of your insurance terms, you may be able to convert to a whole life policy and not get stung too badly on premium payments. If you don’t have the ability to convert, that is a whole other can of worms and it could well be expensive too.
Be aware that there are some insurance companies that offer low premiums, but do not offer the option to convert. While that might be a nice touch up front, and get you interested in their policies, it won’t do you much good it you want to have the option to convert. Never buy an insurance policy without knowing what it does cover and what it does not, or what it offers and what it does not. Also, don’t compare a policy with the conversion option to a policy without the conversion option. That is apples and oranges, and does not work.
The long and short of it is that you want what is best for your family, and if that involves term life insurance that may be converted to whole life later, then you may wish to go that route. Always do your homework. Ask questions. Then, ask more questions. You have choices and it’s best to make decisions based on solid information, not just pricing.
Clelland Green is with Benepath.com, a leader in providing health insurance quotes. Benepath provides individuals, families, and businesses with affordable health insurance quotes in just a few mouse clicks. To learn more, visit http://www.benepath.com.
The post Find out if your term life insurance has a conversion rate first appeared on SEONewsWire.net.]]>This can never be said enough: “Always read your insurance policy.” While that statement typically tends to elicit loud groans, it is vitally important you know what is within the four corners of any insurance policy you buy. This is why you need to read the policies and compare rates before you buy something. You also need to have a general idea of what you want in terms of an amount for your policy. Don’t get too uptight about choosing a number, because there really isn’t a magic number.
Generally speaking you need somewhere between ten and twenty times your income when choosing term life insurance. That is not a hard and fast rule. It is just a suggestion, as everyone’s situation is different. Some people will add up everything they make, no matter from what source. Others will just figure out a number based on their monthly paychecks. In short, you need to decide for yourself how much coverage you want. Or, if you wish, discuss that with an insurance agent and get some other suggestions. It’s pretty much up to you as to how much you want and need.
How long do you need your insurance? Again, that choice is up to you. Having said that you may choose anywhere from 10 to 30 years. Usually, younger people choose the 30 year policies, largely because they get a low rate for a longer period, but again, every situation is different. Some like 20 or 25 year plans if they have young kids. The point is you have choices and quite a lot of them, to make anything possible. In other words, you have flexibility and that is important.
Be aware that term life insurance rates are different for every company, and that is not unusual. Just do your homework, shop around, see what fits and go from there.
Many companies offer a wide variety of incentives to their customers as well, such as return of premium or a yearly renewable policy if that is more suitable than a long-term policy. If you want something, chances are it is out there for you to find with a bit of online searching.
Buying term life insurance is a big decision and one that you need to take time deciding on what you want. The last thing you need is to end up with a policy that ultimately costs you more than it should. Yes, it happens if you don’t watch what you are doing, ask questions and stay informed. Truly, it is your life —- insurance policy.
Clelland Green is with Benepath.com, a leader in providing health insurance quotes. Benepath provides individuals, families, and businesses with affordable health insurance quotes in just a few mouse clicks. To learn more, visit http://www.benepath.com.
The post There is no magic number when it comes to life insurance rates first appeared on SEONewsWire.net.]]>The real question when it comes to having term life insurance is whether or not you cannot afford to have it. It’s a bit like the question about having health insurance. Have it and you’re covered and your bills won’t necessarily break the bank. Don’t have it and you may face medical bankruptcy. Admittedly, term life insurance is not about your health in the same way as health insurance is, but it is about your life and providing for others in the event of your death. In short, ensuring financial security for those left behind.
What many American do not realize is that term life insurance quotes are actually some of the most cost-effective around. Check it out online and see what we mean. There are a plethora of different policies to choose from, so you are not tied to just one or two and therefore stuck with what the company is selling. And, one thing to understand before you start looking for term life insurance is that the way they are structured guarantees lower premiums that can fit just about anyone’s budget. You also get to choose your term, so if you don’t feel comfortable being tied to a long policy, this may be just what you need.
Remember, before you buy anything, understand what you are buying. Sure, you don’t like reading policies and the legalese, but it is vital that you understand what your policy will and will not cover. So, know your lifestyle and what kind of coverage you are looking for before you fork over cash.
Term life insurance is considered to be the original life insurance, and it is, when it comes down to brass tacks, really fairly straightforward. You have the option to make payments at a fixed rate over the period of time you choose to be covered. When that period is completed, the coverage ends. The reason the premiums are so low is because the risk to the insurance company of paying out is lower than with a universal life policy.
Term life insurance may be chosen for a period of a year and on up to 30 years if they wish. Should the insured pass away within the term period, the beneficiaries receive a payout. If the insured is alive at the end of their term, they may extend their coverage. So actually, you have the control over what works the best for you.
Don’t let uncertainty stop you from finding out about the direct benefits to you of buying term life insurance. You will be amazed at what is possible these days when it comes to keeping costs lower.
Clelland Green is with Benepath.com, a leader in providing health insurance quotes. Benepath provides individuals, families, and businesses with affordable health insurance quotes in just a few mouse clicks. To learn more, visit http://www.benepath.com.
The post There are term life insurance quotes to suit your budget first appeared on SEONewsWire.net.]]>Many Americans have misconceptions about term life insurance, and in fact, about life insurance in general. They think getting it is a jinx, and might mean they will die earlier, that it is too expensive, that it is only for a limited time, and that they have no control over the contents or dispersal. None of these myths are true, but they are heard so often, people think they are the real deal.
Here is the truth. You, the buyer, may decide on a plan that suits your specific needs and then set a specific time on when and how much you want to pay for premiums. In short, you dictate what your want and ultimately purchase, not the agent. You just need to remember that a term policy is for life coverage only and you may buy terms for up to 30 years. If the insured dies, the policy pays out to the beneficiary the face value.
Where do you start your search for the right kind of term insurance; insurance that you are happy with and at ease with, knowing it will do what you wish it to do on your death? The best place to start a search is online, as this gives you enough choices to compare the various policies available. Can this be a confusing process?
It can be, as inevitably there will be terminology that is baffling and not as clear as you would like it to be. Just pick up the phone and call the agent. Cut directly to the chase. Tell them what you want, how you would like to achieve your goal(s) and let the agent make recommendations based on their intimate knowledge of the products they carry.
You will get a good sense of what is out there by comparing the details of what you find. The best policies will offer you solutions that are affordable and let you revise things as needed. Keep in mind that not all term life polices do offer those features, and if you want them, you should ask for them specifically. You also want to ask what renewable means when it comes to term life insurance policies.
Interestingly, so many people are so intently focused on the buying details that they forget to re-evaluate and update their policies every few years. Let’s face it. Life changes for everyone, and there is no sense in having a policy that suited your needs 20 years ago when your whole lifestyle is completely different now. For instance, you may now have adult children and a second wife and the beneficiary on the policy is still your first wife. These things need to change.
Clelland Green is with Benepath.com, a leader in providing health insurance quotes. Benepath provides individuals, families, and businesses with affordable health insurance quotes in just a few mouse clicks. To learn more, visit http://www.benepath.com.
The post Term life insurance insures for a specific time first appeared on SEONewsWire.net.]]>If you want to protect your family when you die, then you will want to consider taking out term life insurance. It provides you and your family with peace of mind and the security of knowing everything is looked after in the event of your death. Emotionally, you couldn’t ask for a better deal. Financially, you wouldn’t ask for a better deal. All the way around, term life insurance is very appealing.
It’s appealing for the fact that you and your family have security. Term life insurance offers you protection for a specified period of time. This product actually came into being because the insurance industry knew people wanted temporary coverage for a period of years to protect their family – whether that was the kid’s education or their spouse’s ability to keep the family home. Term life insurance offers priceless security and it’s very simple and reasonably priced.
Is term life insurance simple? Indeed, it is. Go online and look around and get a no-obligation and free quote right away. Yes, that’s right, you can get instant quotes with a few clicks for term life insurance policies. You can shop by budget, by need, by personal preferences, by company, by agent preference or whatever suits your fancy. You can buy a policy online, pay for it online, download it and print it out. How easy is that?
Flexibility? You want flexibility, right? Well, when you’re in the market for term life insurance, you have a whole lot of flexibility. For instance, you can get policies for anywhere from five to 30-year terms. It’s literally up to you to choose. In some cases, you may be able to convert term life insurance into a permanent life policy. There are so many different things you can do, that you will wonder why you didn’t think to do it earlier.
There you have it – term life insurance is flexible, simple, reasonably priced and offers you great security and peace of mind. You couldn’t ask for much more than that.
Lesley Reuben writes for Life Insurance 2.0. To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote, visit http://www.lifeinsurance2o.com
The post Term Life Insurance Offers Priceless Flexibility first appeared on SEONewsWire.net.]]>When people are looking to buy term life insurance, most often they are buying it for financial coverage. Well, coverage for what, you ask? The answer to that question is you may choose what you want to cover. That might just be credit card debts, the kid’s college education fund, your mortgage, or yes, funeral expenses. Many opt to cover funeral expenses simply because, when it comes to dying, the bill is staggering.
These days, death is a lucrative business, with cremations ranging from $1,500 to $3,000. The costs can be higher if you have any special requests. It used to be that cremation was the least expensive method to handle the last wishes of a deceased, but no longer. Burial will cost even more, as it includes the cost of a plot (expensive enough on its own), a casket, the opening of the grave, reinforcing the walls to receive the casket, the funeral itself and the grave closing. If you want a headstone, that is even more.
Surely, the funeral costs can’t be that high? Unfortunately, they are, and just a few examples include the payment up to $500 to open the grave site, at least $1,000 to prepare a vault and anywhere from $500 to $5,000 for a headstone. The casket itself is perhaps the most expensive item your family would deal with, even if it did happen to be cardboard, which is an option nowadays. Generally speaking, people choose metal and that may range up to $2,000 and more.
Don’t forget there are also the funeral home fees. Those range from embalming to storing the body to getting burial permits and issuing death certificates. This may run around $1,500 or more. Often, if you are quoted on what a funeral may cost, if you speak to two different people, you get two different quotes. Pay attention to what you are told.
If you have flowers, music, a minister, transport and any other special services, add these things to your costs as well. As you can see, there’s a good reason why people buy term life insurance to cover their funeral expenses. The sad thing is that when someone dies, stress is high, emotions are high and anxiety surrounding how to pay for the expenses runs rampant. This is why you would want to take care of that stress for your family and make sure you have a term life insurance policy.
Got questions? Ask an expert term life insurance agent or broker for answers. It will be the best call you ever made.
Lesley Reuben writes for Life Insurance 2.0. To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote, visit http://www.lifeinsurance2o.com
The post Term Life Insurance Covers What You Need It To Cover first appeared on SEONewsWire.net.]]>If you’ve been searching the Internet for cheap term life insurance, but haven’t had any luck, you may be looking in the wrong places. There are good places and bad places to land. Suffice to say, if you want the latest scoop in what’s doing with term life insurance, then you need to go to a leader in the industry. And yes, you can so find them online. Shoot for a website that has all the latest web 2.0 technologies and you will know the minute you get there, you will be well served.
Are you alone in your search for term life insurance that suits your lifestyle? No, as there are hundreds of others trying to find something that’s right for them. They too have yet to find the right website to answer their questions. You want a site that has everything right at your fingertips, even the ability to call the agent right away. That’s the true definition of elegant service from a term life insurance professional.
Some things you need to know before you start looking for term life insurance are the basics, like you have to go through a process that calculates your insurability. That will mean providing answers to some questions so the agent can figure out your rate. The base rate is calculated on a number of factors which may include things like whether or not you smoke, take part in extreme sports, ride a motorcycle and your medical history. These factors will affect you rates in various ways. Always be sure to ask your term life insurance broker how they affect you.
If you want reasonably priced term life insurance, do your homework. Yes, it’s just that simple. Do the research and then track down the right company. And you’re right, there seem to be hundreds of them out there in cyberspace, but all of them are not created equal. If you do your research, you’ll find this out very quickly.
You will want a company with a good credit rating, affordable policies, good customer service and extensive knowledge of their products. You will also need to know approximately how much coverage you need. Typically, people tend to under or overestimate their coverage needs. Just remember that there are quite a few companies that will issue term life insurance policies of approximately $250,000 to $500,000 for about $20 a month. This doesn’t happen in every case, but the point is that it is possible.
Lesley Reuben writes for Life Insurance 2.0. To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote, visit http://www.lifeinsurance2o.com
The post Term Life Insurance Will Protect Your Family first appeared on SEONewsWire.net.]]>Joint Life policies are most common with married couples and business partners. They provide peace of mind by ensuring that either party will see a financial cushion should something happen to the other individual.
What Types of Joint Life Policies Exist?
Joint Life Policies can be divided into two types: So-called “first to die” policies and so-called “second to die” policies.
First to die policies are paid out when the first insured person passes on. Some people prefer this option because it can help not only pay funeral and burial expenses, but it can be used by a spouse to handle car and mortgage payments or children’s college costs. In addition, business partners often go for this type of coverage because the money can be used to buy out the deceased partner’s shares or pay for the general costs of running the business after either party passes on.
A second to die policy is also known as a survivorship policy. The payout occurs when the second person dies. It is often used when parents want to provide an inheritance to children. Surviving family members can use the money to pay off mortgages or other loans.
Like other types of insurance policies, Joint Life policies often come in Term or Whole Life versions.
Term life insurance provides coverage at a fixed rate of payments over a specific period of time or term. The rates vary depending on the age of the individuals.
Whole life insurance is a policy in which the premium stays the same for the whole length of the policy. It includes a loan value that builds over time.
Whether you are considering Joint Life Insurance or not, finding the right policy can be an overwhelming process. Finding the right agent, however, can make the decision a cinch.
Lesley Reuben writes for Life Insurance 2.0. To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote, visit http://www.lifeinsurance2o.com
The post The Basics of Joint Life Policies first appeared on SEONewsWire.net.]]>One of the ways to get the most bang for your life insurance policy buck is to set up a life insurance trust. Under normal circumstances, if a policy holder dies, the payout will be subject to estate taxes. But such taxation can be avoided if the policy holder transfers ownership of the policy to a life insurance trust. Depending on the particular policy, this could save beneficiaries tens of thousands or even hundreds of thousands of dollars in taxes.
More Specifics on Life Insurance Trusts
While Life Insurance Trusts offer the advantage of avoiding estate taxes, they do carry less flexibility.
-For example, when you set up a Life Insurance Trust, you cannot change the beneficiary of the policy because the trust will become the beneficiary. The insured cannot be the trustee of his own Life Insurance Trust, although the insured will designate the beneficiaries of the trust.
-Another drawback for some is that you can’t borrow against the policy any longer. If you do, then you go back to being deemed the owner of the policy for estate tax purposes.
-If you wish to set up a Life Insurance Trust, you will also have to find or hire a trustee to oversee the trust. Banks and trust companies are good options.
-Also, Life Insurance Trusts are irrevocable. That means that once you set up and fund the trust, you will not have the ability to get the policy back.
-There are limits on when you set up a Life Insurance Trust, too. You cannot transfer an existing policy to the trust unless you live for three more years. If the insured dies within those three years, estate taxation will kick in. If the insured dies after that three-year period, he or she will be taxed not on the entire face value of the policy but will be deemed to have made a taxable gift in the amount of the cash value of the policy.
There are many things to consider when setting up a Life Insurance Trust, but many people find the difficulties to be well worth the benefit of knowing that 100 percent of the policy will be going to the beneficiaries.
If you are thinking of setting up a Life Insurance Trust, you should speak with life insurance and financial experts.
Lesley Reuben writes for Life Insurance 2.0. To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote, visit http://www.lifeinsurance2o.com
The post Getting More From Your Policy With A Life Insurance Trust first appeared on SEONewsWire.net.]]>There are many reasons one would choose to give this way. A gift of a paid-up policy can provide tremendous benefits to the institution, be it a church, university or other not-for-profit.
Typical donors have outgrown the need for insurance protection, have paid the policy for several years, want to ensure the completion of a significant gift and use this gift of life insurance as part of a comprehensive financial plan.
“Before you consider donating your life insurance, be sure to confirm the donation is even possible,” said Mark Lublin of Life Insurance 2.0. “First, you should ensure that the organization is a bona fide nonprofit—that it’s a 501(c)(3) organization. Ask for certification.”
Then ask someone at the organization if they will accept the life insurance as a gift. Some charities find insurance policies are more trouble than they’re worth. So double-check.
It is possible to receive a tax deduction from the gift, but the receiving non-profit has to be both the owner and the beneficiary of the life insurance policy. The Internal Revenue Service will not allow you to subtract the cash value of your policy from your taxes if you name the charity as the beneficiary but not the owner.
Third, decide whether you want to donate a term or whole life policy. Term life insurance policies do not cost as much, but they are also less enticing to charities because when the term expires on them, they are essentially useless. Whole life policies cost more, but they have a cash value that builds up the longer that premiums are being paid on them.
“There are plenty of advantages of naming a charity as the owner, beneficiary, and premium payer of a life insurance policy,” Lublin said.
It is important to mention that for a tax deduction you may not ultimately be able to claim the entire market value of a life insurance policy given to a non-profit. In fact, it is only meant to be understood as a starting point.
Lesley Reuben writes for Life Insurance 2.0. To learn more or to compare
life insurance quotes, compare term life insurance, or get an instant life
insurance quote, visit http://www.lifeinsurance20.com
Choosing to buy life insurance while you are young, healthy and strong may seem silly to some, but it is important to note that younger people receive lower rates from insurance providers than older people. Why not pay for life insurance while you are financially secure and are able to receive a more favorable rate on a premium?
One of the options a young person might want to consider is term life insurance. Term life insurance gives coverage to a person at a fixed rate of payments over a specific period of time – or term – usually anywhere from 10 to 30 years. The rates vary depending on the age of the individual who is insured.
If the insured individual passes away during the coverage period, the beneficiaries get a cash payout. If the policyholder lives longer than that time period, however, they can renew at a higher rate or convert the policy into a permanent life insurance policy, sometimes without getting a new medical exam.
Because of their affordability, term life insurance plans are popular with younger people.
Even if you are just graduating from college, it may be a good time to consider a life insurance policy. If you are just starting a family or are thinking of doing so soon, it is important to consider who will take care of your loved ones should some unforeseen illness or accident impact you. How will they be provided for? A life insurance policy can bring peace of mind.
And even if you are not considering having a family yet and are still single, you still have others who depend on you. If something unexpected were to happen to you, your death would have a heavy financial effect on your family members. Life insurance could help to reduce this impact.
Also, as a young adult you likely have accumulated student loans that would need to be paid off after your death. A co-signor is legally responsible for the debt even if you pass on.
When we think of life insurance policies, we usually think we should wait until we are older to consider such an option. Yet the truth is that it is never too early to plan for the future and the unforeseen. The younger and healthier you are, the more attractive the life insurance rates.
To learn more about Boston MA life insurance, visit http://www.lifeinsurance20.com/.
The post It’s Never Too Early To Consider Life Insurance first appeared on SEONewsWire.net.]]>As tragedies can occur without notice, life insurance should be secured so that loved ones will not have to face financial ruin as well as an emotional loss. Dealing with the death of a loved one can be emotionally taxing and families should be able to mourn the loss of loved ones without having to worry about paying the bills.
Life insurance is one of the most effective tools for dealing with lost income, as it can deliver a designated amount of money, which is usually free from income-tax, to a family at the time they need it the most. Life insurance is particularly important for those who have children that will need to be provided for. A person’s death can dramatically change the ability of the surviving spouse to pay for rent, save for children’s college funds, and to maintain the family’s standard of living. In addition, a surviving spouse or partner may need to work less in order to take care of the children or may need to secure child care, and this can be costly. Families who consider these issues and obtain a life insurance policy will be prepared to deal with the death of a provider. While it might be tough to assess how a tragedy might change the lives of an individual’s loved ones, it would be even tougher for those loved ones to face financial hardship on top of their loss.
Even those who think they are in perfect health and too young to think about the need for life insurance, it is never too early for those who act as providers for other people. Family members who rely on a provider’s salary for food, clothing and shelter will still need these things even in the event of something tragic.
Although securing life insurance can seem like a scary prospect because it highlights one’s mortality, it should also provide a sense of comfort. Individuals can rest assured that if something unfortunate were to occur, their families would be protected and provided for. Deciding on the right life insurance policy for one’s circumstances can be tricky, and individuals should give careful thought to how they can best protect their dependents.
To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote or term life insurance quote visit Lifeinsurance2o.com.
The post LifeInsurance 2.0 Encourages You to Do It for Them first appeared on SEONewsWire.net.]]>There are a great number of health aspects that can affect your ability to qualify for term life insurance, and these same aspects can have a profound effect on your rates. If you do not have a clear understanding of how these aspects of health can affect your life insurance premium, you may have a hard time figuring out why your rates may be higher than comparable policies for healthier people. It is important to understand how alcohol, smoking and weight can all affect term insurance and how they affect premium rates.
Alcohol consumption can have an effect on your insurance premiums. While many people may think it is impossible for an insurance company to judge their alcohol consumption, they have several ways to assess an individual’s relationship with alcohol other than by reviewing the health questionnaire. As many companies require a physical, they will use the information gathered during the process to assess your alcohol consumption. Another way that insurance companies look for unhealthy levels of alcohol consumption is through the individual’s driving record. If you have any alcohol related incidents on your record, most life insurance companies will see you as an elevated risk and will most likely adjust your premium for a policy as needed to reflect that liability.
Smoking habits can also have a great effect on your insurance premiums. To accurately assess your smoking habits, the insurance company will likely require a questionnaire as well as a physical exam. The medical evaluation will be the easiest way for companies to uncover your smoking habits, as smoking leaves behind numerous chemicals in your body. During the physical, companies look specifically for these chemicals and will use this information to determine how much of a risk you are.
Being overweight or underweight may cause you to see some form of increase in your life insurance premiums. Term life insurance premiums are affected by weight because of the health-related ramifications. If you are underweight or overweight, then you are potentially putting yourself into a health risk situation. The amount of deaths caused by obesity is rising and life insurance companies do not want to take risks on those who are obese. Maintaining a healthy weight can help keep your rates down, but straying too far away from that healthy size can cost you a lot.
By controlling these lifestyle habits that pose a risk to insurance companies, you can help control the amount you will pay for life insurance. You should consult an expert life insurance broker who can offer you advice on how to get the lowest premiums.
To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote or term life insurance quote visit Lifeinsurance2o.com.
The post Control Your Life and Your Insurance first appeared on SEONewsWire.net.]]>Individuals take out life insurance policies because they want to ensure that their families are protected even after their death. While most life insurance is secured with this good intention, sometimes the coverage in a single life insurance policy is not sufficient to meet all the needs of a family, especially when there are a large number of dependents and the financial commitments are high.
Fortunately, there are a number of options available to families that will increase their life insurance amounts. One of the most popular ways to get such insurance is through an employer. Most employers who offer their employees a benefits package will provide a basic amount of life insurance to all of their employees. This coverage is almost always guarantee issue that does not require any medical information. The employer may decide on a flat amount for all employees and may offer an amount that is equal to one times the employee’s yearly salary. While most employer-provided group life insurance does not cover more than one year’s salary, some policies may allow you to multiply that coverage at your own cost. You could, for example, choose to purchase additional life insurance that is three or four times your yearly salary. By obtaining the supplemental group life insurance your employer offers, you can provide extra financial security to your family.
The great benefit of securing supplemental coverage through a group life insurance policy is that you are likely to pay a lot less in premiums for the policy than you would if you purchased an additional individual life insurance policy or increased your coverage on an existing one. The premiums are substantially lower because the life insurance company is writing a single policy for a large group of people.
It is important to remember that group life insurance is not meant to provide for your family on its own. It is meant to supplement life insurance policies you already have. A group plan is simply a great way to supplement any individual policies you may have separate from your employer. If your employer gives you the opportunity to increase your group life insurance amount, you’ll want to carefully consider the cost as well as what coverage you already have before making a final choice.
To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote or term life insurance quote visit Lifeinsurance2o.com.
The post Bridging the Gap with Group Coverage first appeared on SEONewsWire.net.]]>If you’re like many single men and women, part of a group that represents nearly 40 percent of America’s population, you may feel that you have little need for life insurance. After all, if you have no spouse to protect in the event of your premature death, you are not likely to have many financial obligations. While this may be true for some, many singles need and would greatly benefit from securing life insurance policies.
Just because you are single, does not mean that you are alone and do not have people who depend on you. Your death would likely have a profound financial effect on your family members and having life insurance can help reduce this impact. If you are a young adult, you may have accumulated student loans that will need to be paid off after your death. In these days, many education loans are taken out in the names of other family members, and parents are generally the co-signers. Under law, a co-signer would be fully obligated to pay 100 percent of a debt if the other signer is unable to do so. Obtaining a life insurance policy can help protect your family members from having to shoulder this financial burden on their own, in the event of your premature death.
When you pass away, there will be final expenses that must be taken care of. Sometimes these expenses can cost thousands of dollars. These obligations could fall on your parents and other loved ones and cause them undue stress. Securing a life insurance policy now can take this pressure off of your loved ones.
If you are a single parent, you should also make sure that you secure life insurance. As the sole breadwinner in your household, you are responsible for the support and care of your children. If something happened to you, other family members may step in to help, but this may place a significant financial burden on them. As a single parent, you already know the cost of maintaining your children’s standard of living, and when you die your income will die with you. A life insurance policy can ensure that your children will be provided for in your absence.
An expert life insurance broker can discuss your options with you and help you choose a policy that will provide an adequate amount of coverage.
To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote or term life insurance quote visit Lifeinsurance2o.com.
The post Life Insurance for Singles first appeared on SEONewsWire.net.]]>In today’s troubled economy, high-risk investment strategies have threatened the financial stability of some life insurance companies and thus the safety of policy benefits. As a result, many policyholders may be concerned with the company’s ability to pay out benefits. This nervousness may be enough to get them to choose another life insurance provider that can provide more stability and better coverage.
Another important reason that people lose confidence in their existing insurer is because their needs may change, and they may not feel that their existing insurer will be able to provide them with affordable options for increased coverage. Just be advised that any change in your personal circumstances since you first acquired life insurance may require a different strategy than the one originally pursued and getting increased coverage at an affordable price is not guaranteed.
When considering policy replacement, you may also wish to explore the possibility of amending or converting your current policy to a newer product within the same insurance company you have now without any loss of rights or accumulated cash value. If, however, you have already made the choice to switch to another life insurance company, be sure to check out the insurer’s industry rating, as determined by an independent rating service, before committing your funds to the company.
If you are considering replacing or changing your existing life insurance policy, you first should carefully assess your needs and determine what is in your own best interest for the long-term. You should also consider the interests of those you are protecting and factor this into your decision.
Deciding how much insurance you need, how long you will need it for, and which policy will provide the best coverage is crucial to your financial security and your loved ones’ future. If you’ve lost confidence in your existing life insurance policy insurer, it might be a good idea to shop around and carefully consider all of your options. An expert life insurance broker can help you find a new policy that will fit your needs.
To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote or term life insurance quote visit Lifeinsurance2o.com.
The post Lost Confidence in Existing Insurer first appeared on SEONewsWire.net.]]>Purchasing a life insurance policy is not something one should do quickly without considering all of the options. Those who are interested in purchasing policies need to take time and review their needs as well as the needs of their family members. Oftentimes, many people prefer not to think about life insurance at all, as it forces them to consider an unpleasant subject. They only do so when they have had a recent brush with death. Waiting to buy life insurance until a critical moment can be costly for families, and individuals should consider buying a life insurance policy as soon as possible. Doing so will help secure their families continued survival and prosperity.
Life insurance policies should not be static documents; instead, these documents should change as the needs of one’s life changes. As such, life insurance policies should be reviewed at least once a year, so that they will accurately reflect the policyholder’s needs. In order to properly assess their needs, individuals should consider the following questions when reviewing their policies:
Should life insurance be purchased to pay for funeral expenses or should funeral expenses be paid from accumulated cash? Funeral expenses can often run in the thousands and not all families may be able to pay these sums out-of-pocket. A life insurance policy could help families cover these expenses and alleviate the financial burdens associated with one’s passing.
Should a policy be taken out to cover estate taxes? Although the estate tax has been repealed for 2010, this is likely to change in 2011 if Congress takes no further action. As such, the estate tax in 2011 could be costly for some families, and they may require a life insurance policy to help cover their estate taxes.
Should insurance be purchased to leave a lump sum for family members? If so, how much should be left? While some beneficiaries may be able to handle large sums of money, others may find doing so difficult and may need to have the life insurance distributed as income. If the policyholder chooses to provide income, should this income be for the beneficiary’s lifetime or should it be for a set number of years?
Having insufficient life insurance can have devastating effects on a family. Asking these questions when reviewing one’s life insurance policy or when purchasing a new one will help individuals decide what kind and how much coverage is right for them.
To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote or term life insurance quote visit Lifeinsurance2o.com.
The post LifeInsurance 2.0 Encourages Annual Review of Life Insurance Policies first appeared on SEONewsWire.net.]]>When you are young, single and on your own, you may not even consider purchasing life insurance. This is because life insurance is generally designed to provide income and security to those who are financially tied to the insured, such as children or a spouse. However, there are several reasons why you might consider a life insurance policy while young and single. For one, life insurance premiums are likely to be low when you are young and in good health. Also, you may have dependent parents you wish to provide for and obtaining a life insurance policy when you are young will offer them security.
After you get married, you will want to plan for your family’s continued security. It’s a good idea to secure life insurance at this point because you are now financially tied to someone else, and your death may have significant impact on his or her security. You and your spouse will need to decide what the right amount of coverage is and whether or not you wish to purchase whole life insurance or term life insurance.
Once you start a family, you will need to consider purchasing additional coverage that takes into account all of the expenses associated with raising a child. Raising a child can be expensive, and you should consider things such as the cost of college tuition when deciding on how much coverage to add to your policy. You may even wish to consider purchasing a small life insurance policy for the new addition to your family. This can give you extra piece of mind in case of a tragic event.
After your kids grow up and move out of the house, you may have different life insurance needs. You will no longer have to worry about providing for their college education and may wish to pursue a policy that has less coverage. You will, however, still need to retain life insurance to provide for your spouse and may even choose to keep the policy you had, so that you can use the benefits in your estate plan.
Once you reach retirement age, your life insurance needs are likely to change once more. You may just need to secure enough coverage to ensure that your spouse will be financially stable and to cover any remaining debts you might have. A larger amount might be necessary if you plan to leave this money to your adult children, or if you want to use it to help with your estate taxes.
As you go through the different phases of your life, your life insurance needs are likely to change. An expert life insurance broker can help you decide what kind of coverage is right for you right now.
To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote or term life insurance quote visit Lifeinsurance2o.com.
The post The Cycle of Life and Life Insurance first appeared on SEONewsWire.net.]]>When couples get married, one or both of them may already have an existing life insurance policy. If this is the case, you and your spouse should contact your insurance company immediately to inform them of your new status and to change your beneficiary. It is often the case that couples have existing policies through their employers. If this is the case, you may wish to speak with your company about what options are available now that you are married. Most group life insurance amounts are adequate if you are single, but they may not be able to cover your needs as a family. Also, these policies will not go with you if you change jobs, and this could jeopardize your family’s future.
If you have secured your own life insurance before getting married, most life insurance companies will allow you to add your spouse to your existing policy. Doing so is a good idea for families, as it ensures that the family is covered if either spouse passes away. Also, if both parents are included on the policy, it guarantees that any children will be well taken care of in the event that both parents pass away.
If you and your spouse did not have coverage at all before you got married, your change in status could actually help you find a low rate for you and your spouse. You and your spouse can plan for your future together and determine what kind of policy you need, and the amount necessary to secure your future. Young couples can often get better quotes than singles or older couples and should take advantage of this as soon as possible after getting married.
There are a variety of life insurance options open to newly married couples. Couples should consider their options by comparing policies and rates or consulting with a licensed insurance agent who can help give married couples the peace of mind they deserve.
To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote or term life insurance quote visit Lifeinsurance2o.com.
The post The Happy Couple first appeared on SEONewsWire.net.]]>When applying for life insurance, your medical history and background will be of great importance to the insurance company. Depending on your age, you may have to complete a paramedical exam or a full medical exam. Regardless of whether this exam is required, you will first have to complete an application that asks for your full medical history and background information on your lifestyle.
Life insurance underwriters will take family history into account when considering whether or not to offer insurance to an applicant. Much of their concern will be with inherited diseases, like heart disease, diabetes, and various types of cancers, that pose a significant risk to the applicant’s health. The appearance of certain conditions in one’s immediate family (parents and siblings) can suggest a higher likelihood of the applicant contracting the disease. Therefore, it is imperative that you fully disclose all information about your family’s medical history, so that the underwriters can get an accurate picture of your health risks.
You will be required to provide information regarding your personal lifestyle habits such as smoking and drinking, and these answers may affect your application for life insurance. The rational behind this is that unhealthy habits take a toll on your life. Most life insurance providers will ask about the amount that applicants smoke. The more you smoke, the greater your chances that you will be required to pay a higher premium.
Weight is something that you will also be required to disclose and will be considered in your application. You may be asked about not only your weight but also your eating and exercise habits. The increasing prevalence of obesity and its direct effect on other medical conditions means life insurance providers are now more likely to consider overweight people a greater life insurance risk and prone to higher premiums.
There are life insurance plans for those who may be considered too high risk to qualify for a standard life insurance policy. The coverage for these policies is usually smaller with limited benefits and the premiums may be higher.
While it may be tempting to lie about your health issues or lifestyle choices, it’s important to tell the truth when applying for life insurance. If the company discovers that you lied about a health condition or lifestyle choice, it can increase your premium rates, cause your policy to be cancelled, and even cause the beneficiary’s claim to the death benefit to be denied.
To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote or term life insurance quote visit Lifeinsurance2o.com.
The post Disclosure of Medical and Background Information first appeared on SEONewsWire.net.]]>In what is considered to be a very innovative move, Life Insurance 2.0 has hit the Internet with a very different way to do the business of buying life insurance. “We have taken the concept of buying life insurance as being a pain and turned it into something very creative and interactive,” said Mark Lublin, President of Life Insurance 2.0. Lublin isn’t kidding. The Life Insurance 2.0 website is one of the first to offer consumers “everything from soup to nuts,” and then some.
Life Insurance 2.0 not only offers convenience, but also the ability for people to compare life insurance companies, financial ratings, products and pricing for virtually all life insurance companies in one location on the site. “The site is comprehensive and robust offering complete transparency, plus offering all the quotes anyone could need all in one location,” added Lublin. This is something the Internet has never seen before – a complete quoting engine that offers quotes for virtually all insurance companies in the marketplace. Lublin acts as the broker for online life insurance. Think about that for a minute –quotes from virtually all insurance companies online. “There won’t be anything missed when a customer wants to buy life insurance on the Life Insurance 2.0 site,” Lublin pointed out.
There is no sales pitch to be seen on this site, no pushy insurance salesmen and no biased recommendations. What visitors to Life Insurance 2.0 see online is what a consumer gets in the final analysis – simple, straightforward, honest, complete and clear quotes for every company. This is a new way to purchase life insurance, and one that allows people to make a truly informed decision about what type of life insurance will suit them.
“People still have the option to talk with the broker; we actually recommend having that brief conversation to be sure all bases are covered,” said Lublin, “People can call in or e-mail at anytime and a licensed representative will be available to discuss any questions or issues they may have about the various options they are considering.”
“On Life Insurance 2.0 people can even find the financial ratings of an insurance company, something that indicates the stability of the company and their ability to pay out on a claim. Only deal with highly rated and stable insurance companies,” commented Lublin.
The days of working with the typical life insurance salesman are coming to an end. Life Insurance 2.0 offers expert level service and support online, and is run by a knowledgeable and experienced broker who understands companies, products, pricing and the marketplace he represents. “Our website is pro-consumer and offers complete services for the intelligent buyer. Our list of products is comprehensive and people don’t just “shop” onsite, they actually have the ability to “buy” online as well,” explained Mark Lublin, President of Life Insurance 2.0.
To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote or term life insurance quote visit Lifeinsurance2o.com.
The post The Most Innovative Way to Buy Life Insurance Online first appeared on SEONewsWire.net.]]>It’s not hard to find the ratings of a life insurance company; just look them up on the Internet. “Ratings will give an indication of the company’s ability to pay claims in the event of an actual loss. Those ratings reveal the financial viability of the company and give you a good idea of how reliable the company would be during any transactions” said Mark Lublin, President of Life Insurance 2.0.
There are three main rating agencies that provide insurance company ratings; they include A.M. Best, Moody’s and Standard and Poor’s. Ratings are not a difficult system to figure out, as they use letter grades to reflect the financial strength and stability of the insurance companies. “Put another way, having a rating of at least an A would be considered a good grade, and so on down the line,” added Lublin.
It should go without saying that when trying to select an insurance company, only stick with companies that have “A” ratings. In most instances those are the companies that have demonstrated stability over the years. Choosing one rated “A” means the confidence of knowing they will pay out on any claims made in the future.
Checking ratings isn’t the only way to take the pulse of an insurance company. There are other methods of checking a company’s strength as well. Hit the Internet and locate all the public information on the web. Granted much of this may be supplied by the company and may not have what you want to know, but it’s a place to start.
Another method to find out about the company is to ask an insurance broker about their reliability. “This word of mouth method is often even more valuable than anything found online, as it gives you real life anecdotes. In addition, don’t be shy about contacting the company directly and ask them about their financial situation,” indicated Lublin.
While that might sound like a completely silly thing to do, consider this: if no one in customer service or any other employee wants to talk about how the company is doing financially, consider this to be a red flag and make decisions accordingly.
Once all the information has been gathered about a variety of insurance companies, say three to start with, it’s time to make choices. “A life insurance policy is a major life decision and a significant investment, so choose wisely after all the facts are in and analyzed,” recommended Lublin, President of Life Insurance 2.0.
To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote or term life insurance quote visit Lifeinsurance2o.com.
The post Only Deal with Highly Rated & Financially Stable Life Insurance Companies first appeared on SEONewsWire.net.]]>For those who realize, it’s the responsible thing to do. Having life insurance in place to protect loved ones and your business is the foundation of any financial plan. Take a moment to review your “human life value” and protect your life. This isn’t meant to be a depressing reflection, but you really do need to know that if something happens to you, that your family won’t be left high and dry.
This is a tough decision to make during a recession, let alone a financial crisis, because people are tightening up their finances and trying to make do with less. The last thing many people want to spend money on is life insurance. It just adds to your expenses and you wonder if you can really do without it for now, and perhaps renew in the future when things pick up economically.
The fact of the matter is that life insurance policies don’t need to be expensive and yes, you can actually get a policy with great benefits and coverage for a very affordable rate. The key to getting what you want and can afford is to speak to a life insurance broker that values the customer and provides expert service.
When you search online for an independent life insurance broker, look for one who knows the true reality of life and pulls no punches when it comes to telling you the complete unvarnished truth about shopping for and buying life insurance policies. In other words, a person who will tell you like it is, not tell you what you want to hear. That’s important when it comes to making a complex decision like what type of life insurance will work best for you.
When you shop online for quotes, make sure you find a site that provides multiple quotes and shows you everything you need to know to decide about various policies. Once you have rates, compare them to other companies. Make a list of questions you want answered and then once you have found a comprehensive site that offers sterling service, make that phone call to the expert broker and discuss your questions and concerns.
Make sure the site you choose is reputable, legitimate and above all else credible. Look at their content, their testimonials and how the site is laid out. Find out how many companies they deal with, as this will give you an idea of just what kind of a deal they can give you. The more companies they represent, the better chance you have of getting a life insurance policy that fits you like a glove.
To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote or term life insurance quote visit Lifeinsurance2o.com.
The post Life Insurance and the Financial Crisis first appeared on SEONewsWire.net.]]>Been there, done that? Wondering what all the jargon on your life insurance policy actually means? Welcome to the wonderful world of shopping for and buying life insurance. It isn’t the easiest stuff to deal with, but if you take the time to find the right independent insurance broker, you will ultimately wind up the winner.
Let’s take Guaranteed Level Term Life Insurance. What the heck does that stand for and why should I care?When referring to level term life insurance, it mainly means the way a premium is guaranteed and set up for term life insurance. Now there’s another new word – term insurance. Term Life Insurance only gives you coverage for a defined period of time which is called a term.
Basically when your “term” comes to an end, your policy’s guaranteed premium ends as well. You should be aware that there is no cash value accrued inside of this type of policy; in other words what you are buying is pure coverage. Of course there are things that need to be explained in further detail, particularly after you have made an informed decision as to what policy will work for you.
If you have chosen Guaranteed Level Term Life Insurance, make sure to ask your independent broker all the questions you possibly can in order to thoroughly understand what your policy does for you and its terms. Before you do that though, browse top-notch online insurance websites for the best and simplest explanations.
Buying life insurance doesn’t have to be complicated and in fact, if the insurance broker is making it difficult to understand, then don’t walk away, run. You need simplicity and an explanation you can identify with when dealing with life insurance policies and their contents. You also need objective, straightforward and trustworthy answers on what your premium will be.
Typically, the premium paid for life insurance policies relates to the type and amount of coverage, and the premium goes up as you get older. However, with a Guaranteed Level Term Life Insurance policy, you pay the same amount every year, not a bad deal considering that all other types of insurance coverage premiums increase yearly. Knowing you will be paying the same amount every year is a security blanket and gives you piece of mind that your rates won’t change unexpectedly.
Level term life insurance policies are fairly popular because of the fact you pay the same thing every year. It’s a real benefit to know that you won’t get a bill in the mail for an increased premium and there you are, unable to afford the payments.
Here is another thing that many policyholders really appreciate: the guaranteed renewable feature that lets you know your policy automatically renews yearly even after the initial term expires. Will your premium rate go up if the policy expires? Most likely it will, but ask your expert insurance broker to find out.
If you aren’t sure that level term insurance is for you then ask yourself if you prefer not having to worry about premiums getting hiked up every year. This, of course, lets you plan ahead. If that’s what you like, the security of knowing what you will be paying at all times, this is the life insurance for you.
To learn more or to compare life insurance quotes, compare term life insurance, or get an instant life insurance quote or term life insurance quote visit Lifeinsurance2o.com.
The post Guaranteed Level Term Life Insurance No Premium Increases first appeared on SEONewsWire.net.]]>