Barbara Hanson won the 2008 National Sales Achievement Award from the American Association for Long-Term Care Insurance, a national training and advocacy group.

Hanson, a Felton insurance agent and member of National Association of Insurance and Financial Advisers Monterey Bay, is listed fifth in California and 49th in the nation. Some 40,000 people nationwide sell long-term care protection.

Hanson has 13 years of experience in the field. She previously worked in a skilled and intermediate nursing facility.

Long-term care can be very costly.  The average cost of a nursing home stay is $75,000+ a year and it can run much higher in major metropolitan areas. Care in your own home or in the home of a relative can be almost as expensive. Skilled nursing care averages $172 a day in California (2007), adult day care is $95 per day and up, and home care averages $90 a visit.

When you consider that 43 percent of seniors age 65 or older are expected to use a nursing home some time in their lifetime,[1] it becomes clear how important it is to consider the purchase of long-term care insurance.

Long-term care insurance coverage is tailored to the needs of each customer. Those needs include the cost of long-term care in the area where you live, the assets you need to protect; and the amount you are willing and able to pay out-of-pocket if you need long term care.

Because of the variety of customer needs and desires, long-term care insurance is not a “one size fits all” product, and the premiums will vary from person to person.  However, there are several ways to obtain whatever level of long- term care insurance protection you need, while also ensuring that the premiums are as economical as possible.

§         Purchase at an early age.
The older the age of the purchaser, the higher the premium will be for a given long term care insurance policy.  Purchasing at the earliest age possible will result in a lower annual premium, and usually results in paying less in total premiums over the course of a lifetime. For example, a 45-year-old man in good health could buy a long-term care insurance policy with a $150 daily benefit and a four-year maximum for less than $1000 a year. The same policy could cost a 55 year-old man nearly $1800 a year. If both paid premiums until age 85 and rates remained stable, the 55 year old would pay at least 20 percent more in total premiums would have $365,000 fewer benefits available at age 85.

§         Leverage your good health.
As with most life insurance policies, long- term care insurance policies have lower premiums for those whose health is good at the time of application. The longer you wait, the more you risk that your health will change. If your health changes, you could face higher premiums, or may not be able to purchase protection at any price.

§         Consider co-insuring future costs.
When considering a long-term care insurance policy, consider how much income you’ll have available each month from investments, pensions, Social Security, and other sources. If you are able to do so, you may choose to use some of this income to pay out-of-pocket for a portion of whatever long-term care you may need.

§         Select an appropriate elimination period.
The “elimination period” is the number of days covered care must be received before benefits begin to be paid under the policy. A longer elimination period usually means a lower premium. However, because most long-term care begins at home, look for a policy with a zero-day elimination period for in-home care.

§         Investigate a couple’s discount.
If spouses apply for long term care insurance at the same time, many insurers offer a discount on both policies. Some companies deny the discount if one is denied coverage, so be certain that the insurance company being considered will permit one partner to keep the discount, even if only one is ultimately insured. And note that a “couples” discount can also be extended to unmarried adults sharing a living space, depending on the insurer.

§         Look into staggered policy values.
Because women generally live longer than men, couples may want to consider obtaining less total coverage for a man, but extended coverage for a woman.  The resulting premium may be less than if both partners have identical policy coverage. A "shared" plan will help cover both if one needs more than the other.

§         Consult with a professional in the field.
Seek advice from a professional who works full-time in the long-term care insurance field.  They know when and how to apply each of these techniques.

       Barbara Hanson (831)335-4949  CA Lic. 0715625