TAKING CARE OF YOUR FUTURE...AND THEIRS
Doug Hering Insurance, LLC
I'm Doug Hering. I am located in Colorado Springs, Colorado. I am an independent agent working with Summit Financial Group of Tulsa, Oklahoma.
I solve problems for my clients.
Love is a primary motivation for buying most insurance. You love your family so you buy life insurance, long term care insurance or use insurance products to create cash flow.
My approach to insurance solutions is to take a consulting approach and find out what a client wants and needs.
Watch the video interview below for more about my approach to insurance.
Phone and Email
I come to you. I am available to meet any time, days or early evenings.
I am located in Colorado Springs, Colorado, 80920.
Serving clients in
Denver and surrounding areas
Specializing in group benefits, long term care planning and cash flow planning using whole life insurance
Get a FREE article explaining the Long Term Care insurance buying process
Long Term Care Solutions
Protect your assets and provide care for yourself and/or your spouse. Use LTCi, Annuities or permanent life insurance.
Personal Credit Line
Called Infinite Banking or Bank on Yourself, I can show you how to use a customized life insurance policy to create your own pool of cash.
Working with organizations to develop a comprehensive benefits plan that can include health, dental, life, Accidental Death and Disability and other options.
See my life insurance buying tips here
Read my blog for more information about possible solutions to your insurance needs.
Long Term Care Insurance and other options
Long Term Care costs have increased over the years and as people live longer, they are more likely to need Long Term Care of some sort at some time in their lives. You may be in your forties and looking at the distant future or in your sixties and realizing that you haven't saved enough money in case you have long term care needs. Long Term Care insurance (LTCi) is one way to meet those needs. Many people see Long Term Care insurance as nursing home insurance, but it also covers in home care that can keep you out of a nursing home.
Long Term Care insurance protects assets for those who want to avoid the Medicaid system and to protect their loved ones from having to provide care or to exhaust their resources. It also protects assets that you wish to leave to heirs.
Long Term Care insurance takes many forms and can be customized to individual needs and risks. Only after a consultation with an agent who can tell you all of your options should you decide on your plan of action.
What are my options?
There are many product options in the Long Term Care insurance world.
First, there are the true Long Term Care insurance options, such as:
Traditional Long Term Care insurance that is a use it or lose it proposition, but it available with the benefits of state partnership (to be discussed below)
Asset based Long Term Care insurance that is a little more expensive, but has guaranteed premiums and a guaranteed return of premiums.
Second, if a true Long Term Care policy isn't what you want, there are annuities and permanent life insurance policies with Long Term Care riders that can provide cash to be used for any long term care expenses.
The alternative to protecting yourself using an insurance policy or rider is to either save for yourself or to resort to Medicaid. For most people, these are not good options.
How do I decide which option is best for me?
The only way to make a decision is to sit down with a knowledgeable agent and review all options. Each policy has a variety of options so that changing the inputs, changes the policy cost and what risks are covered. No one can give you a real quote on what you need without a consultation.
In order to provide quotes on a variety of products, we begin with basic information such as birth dates and general health. Then you can choose a daily or monthly benefit amount. The benefit amount is the amount you would like the policy to cover daily. For example, if you are primarily concerned about home care, you might choose a number such as $100 to $150 per day. If you want to cover an average nursing home stay, you might choose $200 to $300 per day. You can also choose any portion of those amounts if you plan to save a significant amount yourself.
You also will need to choose the duration of benefits you want to cover. The average nursing home stay is eighteen months. Home care needs may last longer.
You also have the choice of inflation factors. This may seem a bit complicated, but the main impact of the inflation factor is to ensure that the benefits you purchase today will have the same purchasing power later when they are needed.
Another factor that will affect cost is the elimination period. The elimination period is the span of time beginning with a confirmation of qualification for benefits and the time the policy will begin paying benefits. For example, you might be able to cover a year of care yourself, but have the policy pay after the first year of care. Typically an elimination period will be at least 90 days.
Why would I choose an annuity instead?
An annuity can make sense for someone who isn't convinced they don't need Long Term Care insurance, but want some coverage against the chance that they will need additional income for care expenses.
An annuity earns income tax free. A good Long Term Care rider doubles the monthly payment from the annuity, often for a period up to five years. An annuity can make a great conservative addition for people nearing retirement or in retirement. They can also be purchased with retirement account assets without any tax penalties.
Should I choose an asset based policy or a traditional Long Term Care insurance policy?
You should consider a number of factors when choosing the type of policy and only after reviewing illustrations of each type of policy. My blog has a lot of information about these policies.
The benefits of a traditional policy are lower cost to begin with and partnership benefits with the state. The partnership program allows a policy holder to keep assets equal to the benefits paid by the Long Term Care insurance policy once the policy runs out and the policy holder applies for Medicaid.
An asset based policy is more expensive and the premiums are guaranteed. Normally, these policies are purchased by transferring assets from an investment to the Long Term Care policy. These policies have a whole life or annuity underlying the LTC insurance. They guarantee cash accumulation, return of premium and a life insurance benefit.
The only way to know which is best for you is to examine the policy illustrations side by side.
What are ADLs?
ADL stands for activities of daily living. These are the triggers to receive benefits from your Long Term Care policy.
The most common requirement is that you cannot perform two of the six ADLs below:
Eating (eating by yourself)
Transferring (getting in and out of bed or in and out of a chair)
Continence (controlling your bladder and bowels)
In addition, these are long term care benefits, so any short term issues will not be covered by the policy. Doctors must diagnose you as having a condition that will last more than a year.
One other note is that dementia trumps everything else. Almost all policies will pay benefits if a person is diagnosed with Alzheimer's disease or dementia.