‘Milton Jones’ Category
April 23, 2012 by Milton Jones
Okay, so you’ve become aware that your life’s savings is at risk in the game of Long Term Care. You know about the “spend-down” rules before getting public financing. So how do you plan? You could buy LTC insurance. In the landscape for Private Long Term Care Insurance, there are two major alternatives: • The Health Insurance Chassis, and • The Life Insurance Chassis. We will first explore the Health model. Let’s say you’ve looked around and determined that $150 per day is about the realistic starting point for cost of Custodial Nursing Home care. Furthermore, assume you are a couple age 60 and 58 respectively. So what would you expect to pay for such coverage? It depends on a lot of variables. Some people will buy a two-year maximum benefit plan, while others insist on a lifetime benefit. The average nursing home stay is 30 months, but who’s average? Then there’s the matter of Inflation. The government insists that everyone buying LTC insurance be offered Inflation Guard as an option. For example, 5 percent compound increase in benefits. I can tell you from experience that costs of care have more than doubled in the past 15 years. Mutual of …Read More...
February 8, 2012 by Milton Jones
The Debit Man, with his large leather bound collection book, was a familiar figure during much of the 20th Century. He would make his rounds through the neighborhood, collecting small insurance premiums in cash and recording the transactions in the homeowner’s premium receipt book. Along with the milkman and the Watkins peddler, home service insurance thrived until fairly recent times. If you owned this kind of insurance, it was not unusual for the Debit Man to appear at your door every week. Typically, the policies were of $500 or $1,000 face amounts, and premiums might be 25 cents a week, per policy. Perhaps there was a $1,500 policy on the father, $1,000 on the mother, and $500 on each of the three children. The official name for these weekly premium policies was “Industrial” insurance, and has its roots in the changing society brought about by the industrial revolution. As people left their small farms to work in the factories, they also left behind the inherent security of their farm. Living in crowded cities, families often did not have money to properly bury their dead. Existing life insurance policies called for an annual premium, which few people could afford. In answer …Read More...