Long Term Care Annuity
Several plans intended to provide for long term care annuity can be found through ways based on an elderly individual's overall state of health and monetary situation. Such a plan is intended to provide the financial support that is required for long term assistance, whether the aid be from an assisted living center or a nursing facility. Whatever the needs that exist, a plan can be found that will help to provide care where required, "Now also when I am old and grayheaded, O God, forsake me not; until I have shewed thy strength unto this generation, and thy power to every one that is to come" (Psalm 71:18).
People who are quickly approaching the golden years are finding themselves with the possibility of needing a long term care annuity plan. The cost of retirement homes and other full time facilities do not come at a cheap price. People find themselves in need of care that is most likely going to cost a significant amount. Those who have not adequately prepared might find that the funds set aside for retirement are quickly eaten up by the health costs of a spouse. There are precautions that can be taken in order to ensure that the transition from regular to assisted living is a smooth and painless as possible for all involved.
An annuity can come in a variety of forms and is essentially made up of a series of payments that are to be paid over a predetermined amount of time. The amounts of payments depend on the amount that is left over from the process of paying the premium required in order to establish an account. A long term care annuity is basically a similar plan in which the payments go towards the care of a senior citizen who requires assistance, either with medical needs or living expenses. There are two main types of annuities, those which are differed, and others which are classified as immediate. There are most often, two funds involved in an annuity that is deferred, with the one generating interest going towards the funding for seniors, the other set aside as a cash fund. In order to be able to qualify for such a plan there are a few requirements that must be met. First of all a person is required to be under the age of eighty-five and those with pre-existing health conditions such as Parkinson's disease or suffer from a verified case of dementia need not apply as they will not be approved.
Qualified individuals are most often able to find a plan that will provide them with sufficient coverage to cover, on average, a maximum of three years. Those who are considered to be ineligible do not have to lose hope as there is a long term care annuity plan that will work for them. If a person requires full time care and simply cannot afford the costs, need only pay a single premium and in most cases are able to receive coverage indefinitely. There are many factors that are considered when choosing the right plan for an individual.
Advantages and disadvantages can be found with any long term care annuity plan. For example, one of the main advantages for those with a pre-existing health condition is that the qualification process for an annuity is often easier than qualifying for insurance. Also, people who might not require the entirety of the funds received in payments and end up leaving a portion are able to bequeath the remainder of the amount to surviving family members. A major disadvantage is that a single annuity in some cases is simply not enough to pay for complete care over a significant amount of time. The risk of complications with taxes should also be taken into consideration as well.
Regardless of the pros and cons, senior citizens who expect to require financial assistance should look into long term care annuity. Whether or not the entire amount will be depleted depends entirely on the needs and overall health condition of the individual who requires the care. One who has a generally clean bill of health is more likely to find the process easier than those who are either sick frequently be suffering from an untreatable illness. No matter the condition of state of health, a plan can be found to work for anyone.
Time inevitably moves forward and ever passing years add age and wisdom to all. The ones who have seen many years pass would be wise to exercise stored up knowledge in preparations for the unknown. The future cannot be seen, and people do not know if or how much care they will require as senior citizens. Precautionary steps made in preparation of the future should not be taken lightly, but rather looked to as necessary actions towards ensuring the financial stability of the future. A long term care annuity plan can help to guard against possible costs and can act as a safeguard to protect a person's other assets and methods of funding. Those who are interested in beginning such a plan should seek the advice of a financial advisor.
Due to the amount of people who require a long term care annuity, many programs have been established to help. Such programs are generally run and overseen by experts in the field who are familiar with all processes involved and can provide the attention necessary to find the best plan every customer regardless of any potential financial condition. Many businesses have been started by those who feel that seniors require the best care possible and such annuity plans can do just that.
Long Term Income ProtectionIn times of economic uncertainty, long term income protection becomes a real priority. In the wake of bank failures, corporate mergers, layoffs, and plant closings, Americans are taking a hard look at not only how to save money for retirement, but also how to guarantee income in the event of a debilitating accident or injury on the job. When workers are injured, suffer chronic illnesses, or opts for maternity leave; the bills will keep on coming. And in the case of a single-income home, making ends meet without disability insurance or payroll protection is next to impossible. Mortgages, payments for one or more vehicles, college tuition, credit card debt, utilities and basic living expenses are all in jeopardy of not being met, unless workers have a second source of steady cash. Disabled employees can become overwhelmed by a flood of debt in a relatively short period of time. "So shall they fear the name of the Lord from the west, and his glory from the rising sun. When the enemy shall come in like a flood, the Spirit of the Lord shall lift up a standard against him" (Isaiah 59:19).
Fortunately, for most workers who are still employed, companies offer a measure of security in the form of state-mandated business insurance. Accidents happen; and when they do, employees usually rely on employer-provided plans, such as workers' compensation and unemployment insurance to tide them over until recovery. Workers' compensation insurance pays hospital and rehabilitation, along with a small portion of an employee's income, until doctors release them to come back to work. The state honors labor laws by compensating unemployed workers who were not fired from the job, but laid off due to a lack of work. Disabled employees may purchase additional personal coverage or take advantage of employee benefits packages which provide long term income protection while recuperating. Insurance adjusters take into account the nature and extent of the employee's injuries or disability and calculate compensation based on a percentage of fulltime earnings.
Long term income protection guarantees that disabled individuals and their families can maintain the same standard of living as health improves. Insurance agencies work with employers to draft coverage which will enable injured or disabled workers to meet mortgage obligations, pay for automobile loans, and cover expenses for food, clothing, and ongoing healthcare. Insured persons typically are compensated in amounts which equal to or are a percentage of their pre-injury income. In cases of severe work-related injuries where the employer is at fault, judgments can be awarded compensatory with personal injuries. Such judgments would have to be agreed to by the employer's legal advisors or in the courts, in the case of a personal injury dispute.
The Human Resources Department, Benefits Manager, or employee assistance program will review a worker's application for long term income protection. Applications will include the employee's name, address, phone number; and a complete report of the accident or injury. Medical records detailing the nature of treatment, prescribed medication, rehabilitation or therapy, surgical procedures performed, or follow-up treatment will become part of the applicant's packet. Requests for review can be faxed, emailed, or mailed to the employers long term income protection provider for consideration. After undergoing the underwriting process, whereby insurance providers determine the amount of compensation, applicants are apprised of a settlement, which can be accepted or rejected. Depending upon the disabled worker's condition and circumstances, provisions may include future increased payment options, as healthcare needs increase. Lifetime and catastrophic benefits may also apply in cases of a severely debilitating injury or chronic illness. Compensation may also decrease or be eliminated totally as patients recover and are able to resume working.
The importance of long term income protection cannot be overstated. The loss of financial support suffered by a primary breadwinner who is injured on the job or temporarily or permanently disabled can derail a family's ability to be sustained. Injured or disabled workers can be in jeopardy of losing homes, vehicles, retirement funds or college savings. Without long term income protection, many workers face bankruptcy, foreclosure, repossession, or eviction. Spouses and children may be faced with having to replace household earnings without the necessary job skills or education to compete in today's workplace. Having a plan in place before an accident or injury occurs is just plain good common sense. And while some workers may balk at having payroll deductions taken out to cover disability insurance premiums, the decision to safeguard future earnings in the case of an unexpected injury is a wise one and well worth the cost.
Families which benefit from long term income protection can go on living as they are accustomed. Mom and Dad can afford to send the kids to college or plan on retiring with funds in place for the golden years. And the dream of owning a home doesn't have to die due to short-term or debilitating illness or injury. In spite of plant closures, bank failures, and company layoffs, workers can still get financial assistance until future employment can be secured. Some labor laws and regulations require states to provide unemployment checks for up to two years. Additional coverage outside of the workplace may be purchased to aid in maintaining the family lifestyle. New hires should confer with Human Resources and employee benefits administrators to make sure that disability insurance provides adequate income during periods of unemployment due to accident or injury. While Workers' Compensation and unemployment laws vary from state to state, employers should provide new hires with detailed information as part of the benefits package. Employer-provided policies are an invaluable asset as workers recover from short- or long-term illness, accidents, or injuries which adversely impact their ability to make a living.