True Mom Confessions

Mommy Magic

Long Term Care Insurance Questions

Long Term Care Insurance Questions

As a Mom, I worry about my kids all the time. As Ive grown older I have started worrying about my own mother as she ages. I have such a great relationship with her and want what’s best for her. I’ve noticed in the past few years that her health has slipped a bit. She now takes several medications like blood pressure and arthritis meds and it just got me to thinking that she one day might not be able to care for herself and need help. I’m a mother of three and would not have time to take care of her as well so I researched Long Term Care Insurance. I found a site where you can compare companies and they mailed me the Long Term Care Insurance information. Here are a few questions I had with the agent:

1. Can Long Term Care Insurance be used for in home care with my children as caretakers?

2. Is the initial pool of money the amount that is reserved before Medicaid kicks in?

3. Does the Long Term Care Insurance benefit amount compound along with the amount of the total pool that can be use?

4. Does Medicare pay the first 90/100 days?

5. Can I have three beneficiaries and can it be set up to go directly to them and not go through probate?

6. Is there an extra charge for designating someone to be notified in the event of a lapse?

7. Is there an extra charge for a Long Term Care Insurance nonforfeiture benefit?

8. How did you derive the figure of 2 months prepaid? Do I get all of the Long Term Care Insurance premiums returned if I am denied coverage?

9. How much of a percent do you personally and does the company get annually from my payments?

10. Can I get Plan A for 3 years? Can I up the pool of money on Plan B? Or up the $150.00/day on Plan C and have coverage for 3 or 4 years? Ideally, I would like a starting pool of around $270,000.00, 3% compound increases, 90 day waiting period, for 3 or 4 years of coverage.

11. If it turns out that I die before needing care i.e. fatal heart attack, do my beneficiaries get anything back out of the money that I have paid in?

12. Would you purchase this Long Term Care Insurance for yourself or your parents?

Answers to the Long Term Care Insurance questions:
1. Benefits can be used at home but they don’t allow kids to be paid unless they work at a home health care agency and the agency pays them. This is industry standard because of the high cases of fraud that occurs so almost no one allows it. A company called ABC-Low-end insurance company does but they are expensive and have a 54% financial rating score vs. Mass Mutual’ s 98%. I’ve sold LTC since 1998 and years ago they allowed family members to be paid on some policies. To date, I have never had a client use that benefit and get their kids to take care of them because they all have ended up wanting the kids to manage the care not provide it.
2. Yes, you can use your entire pool of money and that is used before Medicaid. This is a OH Partnership plan too so may offer assets protection equal to benefits paid if you happen to use up all the benefits.
3. Yes.
4. Medicare and Supplement may pay the first 100 days of nursing home or re-had care provided you meet their criteria such as having a three day prior hospital stay, entering the facility within 30 days etc.
5. They use to have a return of premium rider that could be added but no longer offer that option. You can leave the beneficiary blank.
6. No, they actually encourage to add a person.
7. Yes, it adds about 10% to the cost. However, we don’t advise paying the extra premium because the stats say that 99% of people keep their LTC policy. You’d probably pay an extra premium and never use that benefit.
8. It’s their monthly rate times two. All deposit premium will be credited to your account once approved and they will send you a bill less the entire deposit. Yes, if declined or you simply change your mind, you’ll get all the deposit premium back.
9. We make it a practice to not get into commission numbers.
10. See attachment for Mass Mutual vs John Hancock. On the four year plan I bumped up the daily benefit to 180/day to try and get your pool as close to your goal of $270,000 as possible but that of course ups the cost. If you go with the three year plan and wanted a 270k pool you’d have to start off at 240/day which would be really expensive.
11. The estate would get any unearned premiums as in say the annual premium was paid and the person died three months later, Mass Mutual would then refund the other nine months’ worth that were not used.
12. Yes, Mass Mutual is the clear play, especially for females, because all other companies like Hancock penalize you for your gender and charge you more. Male rates might be a bit lower with Transamerica so I’d look at that one but unless there was a significant price savings with Trans, I’d absolutely go with Mass Mutual because they are the only company that has not jacked up rates on old customers and have the highest financial strength ratings.

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Want to know how hard it is to be a mom? Read on!

“You are going to be a mom!!!

Oh, that’s the most wonderful thing that could ever happen to you!” This is one of the most typical and common reactions that you will get when you tell anyone that you are pregnant and going to be a mom. Everyone will be quick to tell you how it is going to be one of the most amazing and life-changing experiences in your life and how you should just relax and enjoy it to the fullest.

However, no one tells you the flip side and of course there is one to this situation just like to any other. To be frank, motherhood initially is a major phase in learning. The journey from discovering you are pregnant, to battling morning sickness to constant doctor visits to the fear and pain of labour and finally bringing a baby into this world is long and tiring. If you thought the labour was the worst part, think again. Once your baby is here you turn into a machine. Yes, a machine that feeds, burps, cleans and soothes the baby. Magically you learn to function on 2 hours sleep per day. Suddenly you become an expert on baby first aid.

No one realises the emotional turmoil you are going through. For first time moms, it is completely normal to feel inadequate in motherhood. Your emotions can range from happiness to pride to depression to frustration. While on one hand you are supposed to be mastering the art of taking the best care of your baby, on the other hand, for your own sanity it is important that you handle the complicated tangle of emotions inside you. As someone rightly said, the hardest part of being a mother is knowing how to handle your own emotions.

Of all the emotions felt, guilt is the paramount. Guilt of not knowing how to do things, guilt of not liking your child when he/she embarrasses you or throws a tantrum, guilt of not feeling that exhilarating feeling of happiness every time of the day, guilt of not giving enough time to your husband and so on. It seems never ending. And what makes it even harder is that everywhere you look around, mommies seem to be managing beautifully.

The first and foremost thing to do is to accept the fact that there is absolutely no need to go on a guilt trip. Everyone is going through the same experience whether or not they share it out aloud. No mommy is born an expert and we all learn as we go. It is ok if the house is untidy, if your baby has pooped over the bed sheet, if there is puke over your best tee shirt. It seriously is ok! A thumb rule for new mommies is to “Let Go” of certain things and not worry. As we grow older and more experienced, we learn that all worrying does is to add on to the number of wrinkles on our face – nothing else.

Who said being a mother is easy??? Motherhood is exhausting and stressful. Deal with it. But yes, for most of us, even if we know how hard it is, would we still want to do it all over again? 9 out of 10 times yes of course! It is absolutely ok to not love each and every second of the experience.

It’s the Mommy Magic after all.

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