Long Term Care Insurance Association Extends Consumer Awareness Campaign

The latest extension of the national campaign to heighten awareness of the importance for long-term care insurance planning focuses on smart and affordable ways to plan in the “new economy”.
          

The special insert appears in the current issue of Kiplinger’s Personal Finance magazine according to Jesse Slome, executive director of the American Association for Long Term CareInsurance responsible for the Fresh Perspectives on Long-Term Care Planning awareness campaign.
          

“We must recognize that we live, work and sell in a new economy and that doing things the same old way simply won’t generate desired results,” declares Slome.  “It is vital to educate consumers that taking advantage of alternate policy design strategies can make this important protection far more affordable than many people think.”
          

One million Americans will see issues of the national personal finance magazine during August and September according to Slome.  “We believe a campaign focused on those individuals who are most likely to actually plan for long term care is a far more effective use of limited dollars,” Slome a leading long term care insurance expert explains.  With support of leading long term care insurers the Association has been placing a series of consumer education inserts into leading publications.  “Each insert has a highly targeted message designed to educate and generate interest in learning more about LTC insurance,” Slome adds.  Reprints of the inserts have been made available by supporting insurers.
          

The current insert suggests consumers consider leaving off traditional inflation protection.  “The old five percent compound inflation standard makes coverage more costly than many are willing to spend,” Slome notes.  “Our belief is that some coverage is always better than none and if selecting a different option or purchasing a higher daily benefit and foregoing inflation protection may make sense for some consumers.”

           

The Association plans to run one additional consumer insert during November’s Long Term Care Awareness month.

New Form Of Long Term Care Insurance Attracting Younger Buyers

The sale of asset-based long-term care insurance protection continued to grow significantly according to research by the American Association for Long-Term Care Insurance the national trade organization.   According to data gathered from leading long term care insurance providers, premium increased nearly 20 percent and the number of covered lives increased 13.5 percent.

           

"We expect the sale of asset based or linked LTC products will continue to grow as they offer some highly attractive benefits to a category of buyers looking to protect their retirement savings," states Jesse Slome, AALTCI's director.  "The growth of sales will only continue as more large players enter the marketplace.”  Pacific Life recently introduced a universal life insurance policy that provides long-term care benefits.
           

According to the Association's annual study of new policy sales, more than half (53%) of male buyers were under age 65.  In the prior year’s study, only 48 percent were under age 65.  The percentage of women buyers under age 65 also increased to 50 percent, up from 44 percent in the prior year.
           

"We are seeing two market conditions fueling growth,” Slome explains.  “Younger buys facing a long time horizon before needing care favor the money-back provision of these policies and older buyers are being priced out of the market for traditional long-term care insurance making this a more attractive option.”   “At a time when long-term care is increasingly top of mind, these life insurance-based solutions avoid the ‘use it or lose it’ risk associated with traditional long term care insurance,” says Chris Coudret, CLU, ChFC, Vice President, OneAmerica one of the nation’s leading insurers offering linked benefit solutions.  “In most cases, people make a single payment, effectively removing the risk of future premium increases.”

           

For 2011, the Association study found that the initial single premium face amount of policies purchased was $100,000 or greater for nearly three-quarters (73%) of new policies.  In addition, the vast majority (96%) of new Life+LTC policies issued did not include a benefit increase option that bumped up available benefits to keep pace with inflationary growth of costs.  By comparison, the Association's study of traditional individual long-term care insurance policy sales, found that in 2011 some 96 percent included a growth option.

           

The complete findings will be published in the Association's 2012 Long-Term Care Insurance Sourcebook.  Founded in 1998, the AALTCI is the national trade organization established to educate both consumers and financial professionals about the importance of long-term care planning.

Younger people are starting long term care insurance planning

A year ago, the majority of individuals who contacted the Association looking for long term care insurance information were age 70 or older.  In fact, we got our share of calls from 80 year olds frustrated that they couldn't find a long-term care insurance company willing to speak with them.  Only a few will and most are understandably highly selective in terms of the risks they will be willing to accept.

Well, slowly I have been witnessing a change.  We started seeing inquiries from more folks in their young 60s and more in their mid to late 50s.  But all of a sudden (meaning the last two or three months) we are fielding calls and questions from consumers in their 40s and even a few in their late 30s.

This is a pretty seismic shift in the world of long term care insurance marketing and certainly will impact how a product is sold.  After all, convincing someone in their late 50s and mid 60s that they need to plan for when they reach the age of 80 is reasonable to accomplish.  For someone who is 40, that is literally an entire lifetime away.

First, what do I think is responsible for what's happening?  To be honest, I hope it is a result of the year-after-year studies published by the American Association for Long-Term Care Insurance that explained the percentage of applicants declined for health reasons and the importance of applying at younger ages when you can still qualify.  It could be that agents have "picked off the low hanging fruit" in terms of marketing to 60 and 70 years olds.  Or, it coule be that younger people are being solicited and a percentage are using Google to find expertise and validate the claims.

What we'll want to see if whether more younger people actually apply and buy.  The year-to-year change in buying ages from 2009 to 2010 was statistically insignificant.

One of the more interesting observations that have caught my attention.

Milk, Cheese, Dairy Products May Cut Diabetes Risk

Harvard scientists have identified a natural substance in dairy fat that may substantially reduce the risk of type 2 diabetes.

According to the researchers, the compound, trans-palmitoleic (TP) acid, is a fatty acid found in milk, cheese, yogurt, and butter. It is not produced by the body and so only comes from the diet.  Diabetes is an increasingly common condition that can result in disability for older individuals according to the American Association for Long-Term Care Insurance.

A report in the Annals of Internal Medicine explains that TP acid may underlie epidemiological evidence in recent years that diets rich in dairy foods are linked to lower risk of type 2 diabetes and related metabolic abnormalities. Health experts generally advise reducing full-fat dairy products, but TP acid is found in dairy fat.

The researchers examined nearly 4,000 participants and followed them for 20 years in an observational study to evaluate risk factors for cardiovascular diseases in older adults. Metabolic risk factors such as blood glucose and insulin levels, and also levels of circulating blood fatty acids, including trans-palmitoleic acid, were measured using stored blood samples in 1992, and participants were followed for development of type 2 diabetes.

At baseline, higher circulating levels of TP acid were associated with healthier levels of blood cholesterol, inflammatory markers, insulin levels, and insulin sensitivity, after adjustment for other risk factors.

During follow-up exams, individuals with higher circulating levels of trans-palmitoleic acid had a much lower risk of developing diabetes, with about a 60% lower risk among participants in the highest quintile (fifth) of TP acid levels, compared to individuals in the lowest quintile.

Support for the study was provided by the National Heart, Lung, and Blood Institute and National Institute of Diabetes and Digestive and Kidney Diseases of the National Institutes of Health and the National Institutes of Health Office of Dietary Supplements and National Institute of Neurological Disorders and Stroke.

Free Guide Offers Tips On Living With Dementia

A free informational guide Living with Dementia is available for free download from Homewatch CareGivers.

According to  the World Alzheimer's Report and the American Association for Long-Term Care Insurance (AALTCI) reports, over 35 million people worldwide suffer from Alzheimer's disease and other forms of dementia.

Without a significant medical breakthrough related to dementia care that number could double every 20 years, and by 2050 could affect over 115 million people, explains Jesse Slome, executive director of AALTCI.

"Based on our 30 years of caregiving experience we know that when someone receives a diagnosis of Alzheimer's or dementia that it suddenly involves more than just the patient," said Leann Reynolds, president of Homewatch CareGivers. The Guide to Dementia was prepared to arm families and caregivers with free information and resources, which might not otherwise be provided, that can educate them and provide a roadmap for the difficult journey they face.

The guide covers the following:

- Definitions of dementia and what those definitions mean both clinically and personally
- In-depth tips for communicating with loved ones experiencing dementia
- Communication issues to watch out for as the symptoms of dementia progress
- In-depth tips for helping family members with dementia around the house
- Practical tips for understanding and dealing with behavior issues related to dementia
- Self-help and wellness tips for family caregivers

"Our goal is to support families by providing information and resources," Reynolds added. "We want this guide to be one of the resources that helps family members and caregivers deal with the numerous issues that arise from living with dementia."

23 Million Seniors Can Expect Less From Social Security

The combination of rising Medicare premiums and no annual cost-of-living adjustment would reduce Social Security payments for about 23 million of the nation's seniors.

The decrease in 2011 according to The Senior Citizens League represents two-thirds of the 37 million seniors who receive Social Security benefits.

The estimate is based on the group's recent survey of more than 2,400 seniors. Half of them said they received lower Social Security benefits after Medicare premium deductions this year, due to the lack of a COLA for the first time in 35 years.

The same situation is expected next year, because the Social Security Trustees and Congressional Budget Office have predicted that inflation will again remain too low to pay a COLA. Medicare premiums, on the other hand, are expected to increase.

Another year of no COLA will put Social Security benefits through the wringer said an expert. After paying their Medicare health insurance premiums, seniors will have even less to spend on other essentials. This will force many of them to fall below the poverty line.

Forty-seven percent of those surveyed said their annual Social Security benefits were reduced by at least $132 in 2010; about ten percent reported that their benefits dropped by more than $840.

The Senior Citizens League strongly supports legislation that would provide an emergency COLA or guarantee a minimum average COLA to prevent the erosion in Social Security benefits.

This is simply more proof that aging Americans must plan for their own future including retirement savings plans and long term insurance protection states Jesse Slome, executive director of the American Association for Long-Term Care Insurance.  For more information and a free on reducing the cost of insurance, visit the organization's website.

Study Examines Falls Among Seniors

The risk factors for indoor and outdoor falls for older adults are different, according to a new study.

Researchers at the Aging Research of Hebrew SeniorLife, an affiliate of Harvard Medical School, reported a fact that is often missed when the two are combined.  Their findings may affect how falls prevention programs are structured.

The scientists noted that indoor and outdoor falls are both important.  But they note that  people at high risk for indoor falls are different in many ways from those at high risk of outdoor falls.

The findings which were published online in the Journal of the American Geriatrics Society, found that indoor falls are associated with an inactive lifestyle, disability, and poor health, while outdoor falls are associated with higher levels of activity and average or better-than-average health.

Older adults who fell outdoors were somewhat younger than those who fell indoors, more likely to be male and better educated, and had lifestyle characteristics indicative of better health. Those who fell indoors had more physical disabilities, took more medications, and had lower cognitive function than those who fell outdoors.

The study examined nearly 800 men and women, age 70 and older, from randomly sampled households in the Boston area. Study participants underwent a comprehensive baseline falls assessment, including a home visit and clinic examination. Falls were reported on monthly calendars submitted to the researchers. Over a nearly two-year period, 598 indoor falls and 524 outdoor falls were reported. When a participant reported a fall, a structured telephone interview was conducted to determine the circumstances.

A fall the scientists report is not necessarily a marker of poor health. In fact, almost half of all falls occurred outdoors, and people who fell outdoors had the same or better health than those who did not fall at all. Second, epidemiological studies of risk factors for falls in older people may be hampered when falls are combined, with important associations between risk factors and indoor and outdoor falls potentially being missed. Third, intervention programs need to be tailored differently for people more likely to fall outdoors than those who tend to fall indoors.

According to the American Association for Long-Term Care Insurance, seniors who fall suffer moderate to severe injuries, including hip fractures and traumatic brain injuries. At least half of these falls occur outdoors.  Falls are a leading cause for needing long-term care.