How to Compare LTC Insurance Policies. Long term care insurance policies help provide for the cost of long-term care required for an extended period of time due to old age, chronic illness or disability. It covers care not generally covered by Medicare or Medicaid. Insurance companies around the country offer different long term care policies, thus, it is vital to compare each policy from one provider to another. Here are some tips that will help you compare LTCi policies and find the best fit for you.
Cost of Insurance
Generally the cost of long term care insurance is based on your age at the time the coverage starts and the type of coverage you choose to have. Your place of residence also affects the premium. Another factor that adds to your LTCi cost is the inflation protection rider. Inflation protection is a very useful addition because it protects your policy against the rising cost of care. To compare costs, you can request for a long term care insurance quote online.How to Compare LTC Insurance Policies
Compare Long Term Care Insurance Coverage
Choose a long term care insurance provider that offers a wide variety of care options like assisted living, home health care, nursing home care and adult day care. Since caregiver costs are expensive, find out if the policy covers in-home care. Also, make sure that the “assisted living” clause is defined broadly in the policy.
Evaluate Payment of Benefits
Another important aspect you must consider when comparing LTCi policies is how providers pay the benefits. Determine from each provider the benefit eligibility criteria that you must meet before the company will pay the benefits. Usually, these are based on you function everyday like how many activities of daily living (ADLs) you are unable to perform or whether you have a cognitive impairment. Examples of activities of daily living or ADLs are bathing, eating, dressing, using the bathroom, continence, and moving from a bed or chair.
On a national scale, the median annual cost of a nursing home’s private room is $90,520. Since 2012, the cost of home health aide services also has risen by 2.3 percent. With long term care (LTC) costs becoming more expensive every year, it is important to plan ahead how you plan to pay for long term care services as early as possible. Aside from using your savings or qualifying for government funded long term care insurance like Medicaid, long term care insurance can help ease your worry about long term care expenses.
Have a Secure Life after You Retire. Are you retired already? Are you still working, but you are near retirement age? This is the time to make plans for your future when you cannot work anymore.
Retirement plans can be claimed from ages 62 to 70. You may be content with your retirement payments as a reward for your previous work and for reaching senility. However, you can even increase the money from your retirement plans. Emily Brandon, an author of retirement and social security articles in US News, shares these tips to secure your retirement. Have a Secure Life after You Retire
Just Wait, and Get it Later The Social Security Administration notes that 66 years of age is the right time to get maximum amount of Social Security. If you claim it at a younger age, you will receive less. As a retiree, you do not have to rush with your retirement payments unless you need them immediately.
If you have a healthy body and lifestyle, you can even delay collection of your financial benefits. Daniel Goldie – the president of Dan Goldie Financial Services in California – mentions that as you get older, the amount of your retirement money increases. He adds that as years pass, this growth will not stop.
Not One, but Two Claims You can benefit from two types of retirement payment. One is based from records of your previous work. The other is based on payments that can reach half the money received by the higher-earning spouse. This tip is applicable for people of married status. However, some retirement plan providers may require you to be married for at least 10 years.
In fact, you can claim them both – although not at the same time. One way is to receive spousal payments, and delay your retirement compensation. When the latter has accumulated, this may be the right time to acquire it.
Take Care of your Medicare When you are eligible for retirement, sign up to Medicare as soon as possible. You may even subscribe three months before you turn 65. By delaying Medicare, you may increase your premium costs by 10 percent per year since the eligible retirement age. Your job before retirement may include health insurance plans. If you are still working, take note to sign up eight months before retirement to avoid penalties.
Control Your Spending Retirement payments enable you to sustain yourself while not working. However, it is better to avoid constant or mismanaged spending. A time may come that you lack the money to sustain yourself, and consider that you are a retiree. Gordon Tutor, a certified financial planner for Wealth Analytics, advises to carefully assess your expenditure along with the retirement plan payments you receive.
Some retirees consider investing in stocks so they can get additional money. However, the stock market has an unpredictable nature. As an investor, you may even lose money instead of gaining more. It is recommended that you should pursue safer investments that guarantee financial security. Keep in mind that you are retired from work.
As you approach retirement, it may seem as the end of the road. Think of it as a beginning and as an opportunity. Life after retirement can be a pleasurable one, as long as you manage your retirement plan carefully.
Important Steps to Financial Freedom. Who hasn’t wished of winning the lottery and taking home millions of dollars to buy that new luxury car, a nice beach front house, or maybe finally go to that family dream vacation? It’s really wonderful to imagine that you have the financial resources you need to have a good, comfortable life. It’s everybody’s goal to have financial freedom and be able to do what they want without worrying about money and where they’ll get it.
However, simply raking in millions from lottery winnings doesn’t guarantee that you’re made for life. You still need to have a good spending and saving habit and follow a sound personal finance management plan in order to make your money work for you.
With that said, the question now is what is real financial freedom and how do we achieve it? Most financial experts and family financial planning books and articles would define financial freedom as having a continuous flow of money or income in your bank account, eliminating the need for you to put in hours and painstakingly work everyday of your life. This is referred to as “passive income”, or money that works for you, instead of you “actively” working for it.
Achieving passive income is possible through investements that you make early on while you’re young and have a full capacity to work and earn. As you know, as we get older, our ability to earn also decreases since we might not be as physically strong and healthy to do more work. That’s why retirement planning, healthcare insurance, and building a “nest egg” are all important financial matters we should deal with as early as possible so that whatever extra money we make or have can be placed in wise investments to create that passive income that will then lead to our true financial freedom.
Before diving into various personal finance workshops, seminars, or consulting with a financial adviser to start creating passive income, there are some important steps to financial freedom that we should do now, in the present, to make sure we get to follow a good path into creating that passive income in the future.
Get out of Debt Create an “emergency fund” in your bank account equivalent to 2 months of your monthly household and personal budget. Set aside another fund equivalent to 6 months of your income. This will be your “long-term” savings that you can invest in higher yielding investments. After building up your emergency and long-term fund, you can now start creating passive income by looking at real estate investments, retirement plans or options, and other speculative stocks and high risk investments. Just a word of caution: don’t go into any investment that you do not fully understand or promises too high of a return or interest. Chances are you’re going to lose money and regret it in the future.
Things You Should Do Now for Your Retirement; Contrary to what many people believe, retirement planning doesn’t need to take place when you’re in your 50s or 60s. It’s actually best to start thinking about it the moment you’re able to get your first job or earn your first dollars. Why? Well, frankly it’s because nobody said that you’re supposed to retire only when you’re old. Early retirement is possible, though a lot of us only dream of it. It is something achievable by any average employee or working professional as long as he or she conscioulsy plans for it.
Here are some things you should do now in order to set the ball rolling for your early retirement:
Do your homework and set out a retirement plan A lot of us want to retire early, but few are able to make the necessary plans, strategies, and sacrifices in order to achieve that goal. Stop day dreaming and start laying down a plan that will work for you based on your income, lifestyle, and financial priorities.You have to have a savings plan, a good and realistic budget plan, and of course an investment plan that you can build up through the years leading to your retirement. Nobody gets to go on early retirement and be financially secure without putting considerable hours studying personal finance management books, talking to financial experts, and just really devoting a lot of their time and effort in figuring out a retirement plan they can stick to now and far ahead into the future.
Check your spending habits and try to spend less This is probably the advise that people don’t like hearing the most. After all, we would like to enjoy our money since we worked so hard for it. But this is also one important sacrifice we should do now while we’re still young and able to earn good income. By spending less we get to have more to put away for savings and possibly future investments for early retirement.
Save and Invest
If you’re able to spend less, then you should have more money for savings and investments. The whole idea of retiring early is based on creating savings now, while you’re young, and letting that “pool fo money” grow on its own through the years so you could enjoy the fruits of your labor during retirement. Create more income streams As an added back up plan to ensure you have the money to push your retirement savings, try to create more income streams besides your full-time job. Why not explore your hobby or passion and see if you can turn that into another potential money-earner. If you have a lot of spare time, then get a part-time work in your community. Having extra income gives you a better chance of saving more for your retirement.
Is a There a Perfect Time To Invest; Is a There a Perfect Time To Invest? It is almost impossible to tell when the perfect timing in investing is. Well, it is a different situation if you have a time machine or a crystal ball, but that does not exist. Waiting for the right time to invest is also hard to do because you might be waiting for that perfect moment but you did not realize that it just slips right by you giving you missed opportunities, and if you get too aggressive in investing, it might lead to regret. Instead of finding the right time, why don’t you just stick with staying power and discipline to achieve success in investing? Here are some tips one can use to help them about investing:
Investment stages are as follows
• Choosing and owning a variety of investments will definitely be a smart move on your part. Many investments affect each other, like if bonds increases, it will affect other investment like shares to go down. If you own both of these investments, you can gain from bonds and you can absorb the losses from the shares.
• For those who do not want to take high risk in investments, you could try the “dollar costing averaging”. This requires you to contribute to your portfolio at different prices over a period of time. By making small and often contributions will spread out the cost of investment. This will even out the highs and lows of the average overall price.
Is a There a Perfect Time To Invest
• Is a There a Perfect Time To Invest; Is a There a Perfect Time To Invest? It is almost impossible to tell when the perfect timing in investing is. Well, it is a different situation if you have a time machine or a crystal ball, but that does not exist. Waiting for the right time to invest is also hard to do because you might be waiting for that perfect moment but you did not realize that it just slips right by you giving you missed opportunities, and if you get too aggressive in investing, it might lead to regret. Instead of finding the right time, why don’t you just stick with staying power and discipline to achieve success in investing? Here are some tips one can use to help them about investing:
Investment tip is as follows
• Is a There a Perfect Time To Invest? Review and research everything. You cannot just load investments in your portfolio. You must be smart to what kind of investment you are going to push through. Investments are like plants which need to take care of properly and should be nourished with much attention. If ever you made a mistake, everyone makes a mistake every now and then, better make sure you do not make the same mistake twice! A professional investor would never make the same mistake twice because they learn from it. It is wise to review your investments thoroughly every month or so or even weekly, just to make sure you know every inch of it. So to sum this up, the secret to good investing is thinking ahead, discipline and make sure that your portfolio does not have any unrelated asset classes and better make sure to think long term. Do not wait for the right time, if you found an opportunity, seize it if you see it is worth it, and do not let this become a missed opportunity.