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Check Your Insurance Coverage and Other Things

Written on January 13, 2012 by Thom Cooper in Insurance

By Roy Whited

In a recent press release the Ohio Lieutenant Governor and the Department of Insurance Director ,Mary Taylor, are encouraging Ohioans to check insurance coverage and policies related to winter weather. Taylor reminded Ohioans the winterizing homes and cars will likely save time and money.

Taylor stated “It is important for all of us to check our vehicles and property for winter.” She encourages everyone to review their insurance policies. To better understand coverage options and the claims process, contact the Ohio Department of Insurance, Consumer Services Division.

Director Taylor suggests Ohioans review insurance policies and communicate with their insurance agents. Ohio Department of Insurance representatives are available to answer questions and explain the claims process by calling toll free 1-800-686-1526. For more detailed list of tips check out www.insurance.ohio.gov

Now, while you are in the mood to check on things, why not take time to check on what plans you have made to protect and preserve your assets.

Check your health care Powers of Attorney to make sure they are HIPAA friendly.

Check your business or general Power of Attorney to make sure it is adequate.

Check with other family members or close friends to make sure someone knows if you have a Living Will.

Check to see if your home and other assets can be protected from the cost related to a long term stay in a nursing home, assisted living facility or home health care.

Call our office today to schedule a time for a review. 1-800-798-5297.

NOVEMBER IS LONG TERM CARE AWARENESS MONTH!

Written on November 1, 2011 by Thom Cooper in Insurance, Long Term Care Insurance

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By Roy Whited

Start the conversation with your spouse, parents or family today!

November is long-term care awareness month. If you haven’t started the conversation with your spouse or your family about the importance of proactive planning and how it can protect your assets and their family’s well being, November can be the perfect time.

Transferring this risk to an insurance carrier and protecting your assets from the devastating cost of long term care can make good economic sense. For more information about what choices are available for you as a consumer you can visit the website of the State of Insurance Department or you can just call our office at 1-800-798-5297 to schedule a free consultation.

For those of you who can’t afford the cost of long term care insurance or can’t qualify for the insurance you should learn about what other planning options are available to help protect your money and your home. Call 1-800-798-5297 for a free consultation with one of the Elder Law Attorneys of the Cooper & Adel Law firm.

What is the risk? What are the odds?

Odds of having a serious car accident. 3 in 900, less than 1%
Odds of having as residential fire. 7 in 900, less than 1%
Odds of being admitted to a critical care unit. 21 in 900, less than 3%
Odds of needing long-term care. 630 in 900, approximately 70%

Odds are calculated using statistics from public sources that are deemed to be reliable. For more information on the sources you can call our office 1-800-798-5297.

(Taken in part from Westland Financial Inc.)

A free coffee for your thoughts about senior care services

Written on August 25, 2011 by Thom Cooper in Health, Insurance

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By Kathy Cooper

I don’t know about you, but when I plan to buy something new, like a TV or a blender, the very first thing I do is check the reviews on Amazon.com. If a reviewer is either very positive or very critical of the product, I take their review into account. If there are too many negative reviews, then I will probably not buy that product. Further, a lot of positive reviews are often more important to me than saving a few dollars. I also try to endorse products on Amazon.com that I like and you can be sure that I give my $.02 if I don’t.

Now you have the opportunity, according to Elderlaw Answers, to tell about your experiences and give your review about healthcare service providers … and get a free Starbucks coffee as part of the bargain. You have to have some hands-on experience and you have to sign up on the site, but it’s free. Here’s the link: http://www.caring.com/review_submissions/giftcard?utm_source=aaron

Will this make a difference in the overall scheme of healthcare providers and what they do day to day? It looks like this website is just getting started, but I hope so. I hope this is only the beginning of senior websites that give you the opportunity to make a difference with your reviews. If you know others, please add them in our comments.

After all, these reviews can help us all get our ducks in a row!

Life Insurance… Do you have enough coverage??? Time for an Audit.

Written on March 29, 2011 by Thom Cooper in Important Documents, Insurance

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By Megail Gaumer

When it comes down to it, who really knows whether or not you have the right insurance? Unless you yourself are an insurance agent the truth is probably very few of us.

How much coverage do you need? Depending on your life style and health when you first purchased your policy, do you have enough coverage now? Do you have too much?

At the stage in your life, would the premium you are paying be better put to use elsewhere? Perhaps long-term care insurance, possibly borrowing from your life insurance policy to pay for your long-term care policy while allowing you to keep the death benefit offered by your life insurance too.

The latest life expectancy tables (2006) may tell you that you could purchase more life insurance for less premium, or lower your premium but keep the same amount of coverage.

Is your policy a “self-eating watermelon”? Will your rate of return on your policy eventually not be enough to pay your premium?

How sound is the company you’re insured through? The financial stability of your insurance company should be looked at every few years.

An insurance audit will reveal potential problems as outlined above, If you would like to speak with someone about reviewing your current policies please contact us at 1-800-798-5297.

Planning Alternatives for Long-Term Care and Veterans Benefits

Written on February 8, 2011 by Thom Cooper in Insurance, Veterans

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By Attorney Mitch Adel

In a recent story in the Columbus Dispatch it was reported that while most believed that one of the causes of budget problems in Ohio was a result of the state paying nursing homes under the Medicaid programs, it was actually shown that the cost of the state pays for nursing home care has not increased since 2004. While the actual cost of a nursing home has increased since that time, the State acknowledged paying less for that service as an increasing number of people are seeking alternatives for their long term care, like assisted living or at home care. After discussing the issue with some of the clients of the Cooper law firm, they said they preferred planning for those alternatives to nursing homes, but understood the need for those services and reasons for protecting their assets.

One of the most preferred alternatives to nursing homes with our clients is caring for their family members in their own homes. While, the state of Ohio does have programs for at home care, unfortunately the amount of care they provide is very modest, in most cases those programs include a maximum of 20 hours a week. Fortunately for a good percentage of our clients that are Veterans or widows of veterans we have found that the the VA Aid and Attendance Pension benefit is a much better fit. Married veterans that qualify can receive $1,949 a month to be used to pay for medical expenses including bringing caregivers into the home. (A single veteran is eligible for $1,644 a month and the widow of a veteran is eligible for $1,056 a month)

One of the best fits for this benefit and at home care that we frequently use involves parents hiring their children to care for them. Families can obviously hire outside professionals to care for their loved ones at home, but, parents can also pay their children to care for them at home with monies received from the VA. I urge that if you do use this technique as your medical expense in the qualification of benefits you follow the appropriate formalities. Failure to do so might result in the VA demanding an overpayment. I have unfortunately had to represent families in dealing with the VA where the family could not prove the actual arrangement and as a result owed a back payment to the VA of thousands of dollars.

A few easy steps to ensure you are not involved in those VA demands is to make sure that you have a legally binding contract of care, even if signed between family members and making sure that you can prove that payments under such agreement have actually been made. Looking at these steps individually:

Personal Care Agreement- The risk of not having a legally binding contract of care agreement is magnified in the event that the person receiving the care at home eventually needs other state benefits including Medicaid. If there was no agreement in place that could be proven to the state, the monthly payment amounts would be viewed as gifts or transfers in return for no value and could preclude qualification for state Medicaid benefits.
Payments under a Personal Care Agreement- Being able to prove payments were made means that the person receiving the care, must be prepared to be able to show the VA cancelled checks to the caregiver and alternatively the caregiver must be prepared to show that they received the income and that they are filing this income with their annual income taxes.

If you are interested in alternative planning options to nursing homes or veterans benefits, please get in to see one of our qualified staff members as soon as possible.

Can’t keep up with Long Term Care Insurance Premiums?

Written on February 7, 2011 by Thom Cooper in Insurance, Planning

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By Robin Crouch

Long term care insurance helps provide for the cost of care for individuals that are no longer able to perform basic daily activities such as dressing, bathing, eating, toileting, walking, or getting in and out of bed.

Coverage costs can be expensive and the rates increase with age. A 55 year old couple buying three years of $150/day coverage that adjusts with inflation could pay $2800 per year today but could pay as much as $4150 per year by the age of 85, a thirty year investment of approximately $103,500 that would provide benefits of $219,000. You are purchasing a pool of money to be used at a later date that you may never need. But considering the potential costs of long-term care, it may be money well spent.

I know a woman in her 90s who purchased long term care insurance twenty-five years ago as part of her estate plan. She was very secure with the knowledge that she would be able to pay her own way, and gloated about it to her friends all the time. As part of her estate plan, with a local attorney who is not an Elder Law Attorney, she began gifting $10,000 per year to each of her five children, outright. Did I mention twenty-five years?

I spoke to her recently and she said that her premiums had increased so much that she could no longer afford the long-term care policy and quit paying it, she no longer has the means pay for an extended nursing home stay, and the five children still want theirs. She has become very bitter over the entire matter, I didn’t have the heart to suggest that she should have consulted an Elder Law Specialist.

If you already own a long-term policy you may want to review your options. Statistics show that only 8% of those with three years of coverage exhaust their benefits. switching from an unlimited policy to a three-year benefit saves as much as 39%, spouses can save as much as 40% when both purchase coverage. Adding a nonforfeiture clause could ensure continuing long-term coverage even when you stop paying the premiums.

If you already have a policy and are worried about keeping up with the payments, there are other options available to you. Give us a call or consult with an elder law specialist in your area.

If you think Long Term Care is expensive in Ohio…

Written on July 13, 2010 by Thom Cooper in Estate Planning, Insurance, Long Term Care Insurance

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by Attorney Thom L. Cooper

The monthly average cost a long term care stay in Ohio is $6,023 per month according to the Ohio Department of Job and Family Services. That works out to $72,276 per year. However if you want to see where we might be headed, let’s look at the cost of some of our trend setting states nearby. According to a recent Genworth Financial Survey. A semi-private room will set you back $100,923 in New Jersey, $110,980 in New York, and $126,108 in Connecticut. Want a private room, add about 10 percent. And…if you think that is high, Alaska, may be a nice place to visit but don’t have a medical emergency there and go into a nursing home since a semi-private room there will deplete your savings at the rate of $218,453 per year!

How much is your home worth?
How long to go through it with a long term care stay?
Who can afford this?

And…to make it worse. If you go into a nursing home, or receive in home medical benefits, in Ohio and the State helps pay the bill they will put a liens on your home for these costs. It is no wonder that people are desperately worried about this problem.

There are things that can be done to protect your home…but you must act now since there are time limits which must run to fully protect your home. But….these time limits don’t start until you act!!

For help…

…but please act now.

Your home and assets are at stake.

For a copy of the Genworth study see:

http://www.genworth.com/content/products/long_term_care/long_term_care/cost_of_care.html

Beware of Insurance Scams

Written on May 4, 2010 by Thom Cooper in Insurance

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Insurance fraud The information below was taken mostly from a news release by the Ohio Department of Insurance on Monday April 26, 2010.

Potential Life Insurance Scheme Thwarted

Insurance Director Revokes California Agent’s License

COLUMBUS – If someone offers to give you money to take out a life insurance policy on yourself for the purpose of selling it to an investor, they are probably involved in a stranger-originated life insurance (STOLI) scam, which is illegal in Ohio. Ohio Department of Insurance officials recently stopped such a scam from taking place.

On March 16, 2010, Ohio Department of Insurance Director Mary Jo Hudson revoked the insurance license of Alex Kozonshvili of California for alleged violations of Ohio insurance law, including misrepresentation and untrustworthiness.

The Department’s investigation revealed that in August 2008, Mr. Kozonashvili allegedly submitted a universal life insurance application to Prudential Insurance Company for $9 million worth of coverage for a 74 year old woman from Cleveland. In the application, he misrepresented where she lived and claimed that she had assets worth $12.5 million. The agent allegedly offered the potential victim at least $8,000 to participate. The potential victim lives on a fixed income of less than $1,000 a month. Fraud was suspected and reported to the Department.

Director Hudson is encouraging seniors to be on the lookout for these types of schemes so they don’t become victims.

“STOLI transactions involve someone betting on your life” said Director Hudson. “We want Ohioans – especially our senior citizens – to be cautious about any kind of scheme that involves someone offering you money or a low-cost loan to take out a life insurance policy on yourself. We want people to empower themselves with knowledge about insurance, which exists to protect them, not as a vehicle for fraud or financial exploitation. In this case, the good work of the underwriters and investigators at Prudential Insurance and our fraud and enforcement investigators protected someone from potential harm.”

For more information about STOLI, visit www.insurance.ohio.gov/Consumer/Pages/STOLI.aspx.

Ohioans who believe an agent is committing fraud or misconduct should call the department’s fraud hotline, 800-686-1527. Information about agent fraud and misconduct can be on the Department’s website, www.insurance.ohio.gov.

The new estate tax can bite

Written on May 3, 2010 by Thom Cooper in Estate Planning, Insurance, Taxes

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Tax_Debt_Small I would never have believed two years ago that it would be possible for us to be going back to a 1 million federal estate limit. But, in spite of many legislative bills and resolutions it appears to be helping.

How did we get here? Under the 2001, Bush tax cuts, the amount exempt from estate taxes went up gradually over 8 years then took a big jump to $3.5mil in 2009. In 2010, both the federal estate tax and 2010 the federal estate tax was eliminated for one year only.

After the Bush tax cut expired at the end of 2010, the estate tax is scheduled to return in 2011. At the same unfavorable rights applied ten years earlier, before the Bush tax cuts. In 2011 the amount that is exempt for federal estate tax will be $1mil and the tax on the rest will be 55% as a base, and go as high as 60% and this tax is imposed on all of your assets including your life insurance, IRAs and fair market value of all of your real-estate including farms.

It is true that money that goes to a spouse is exempt from federal estate tax. But be careful, leaving money to a spouse only serves to double your estate, resulting in even more taxes being collected when the second spouse dies.

Most of those outside Congress in Washington, assumed that some type of political deal will be struck before the estate tax disappears in 2010 and comes roaring back in 2011. That has not been the case in spite of much grumblings and proposals.

Many of my clients have told me, “I never thought that I would be here facing a catastrophic estate tax, where between state and federal taxes, up to 70% of my estate could be lost to taxes.”

There are things that can be done. We suggest that you come in and visit us and we’ll provide suggestions as to what you can do to reduce this estate tax from falling on you.

We would suggest that you come in before you face the devastating effect of losing your money to this tax.

Frequently Asked FINANCIAL Questions & Answers: Part 1

Written on February 23, 2010 by Thom Cooper in Asset Protection, Insurance, Investments

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lock_money_annuity

Over the past several months our office has been receiving an increasing number of clients calling with question about various financial and insurance products. Most of these questions have been related to how certain products work and especially as to how these products may or may not fit into the clients overall plan to avoid taxes, reduce probate cost and protect their assets from being lost to the cost of aging, including the cost of a nursing home stay, assisted living or home health care.

Listed below are a couple examples of questions received and answers that hopefully will help clear up certain misunderstandings. ……

Question: Is an annuity product protected from being lost to the cost of a nursing home stay if the annuity has waiver of surrender charges?

Answer: No. The waiver of surrender charges in the event of a nursing home stay is just that, a waiver of the surrender charges should you need to cash in your annuity to help pay for the cost of your nursing home stay.

Please note: The only annuities that are protected against being lost to a “nursing home spend down” are those being used in conjunction with other legal documents, such as a trust. If anyone tells you that they have a stand alone financial product, such as an annuity, that will gives you nursing home protection it is not true. If you have any specific questions in this regard, please call Sandy Workman at our office for a more detailed explanation.

Question: I was recently approached about a single premium whole life insurance policy and was told the death benefits would not be taxable when I die. Is his correct?

Answer: Most life insurance death proceeds are not subject to income tax or Ohio death tax if paid to a named beneficiary. However, if you are the owner of the life insurance policy, the death proceeds are included in your gross estate for federal estate taxes. These death proceeds may or may not be taxable depending on the size of your estate or when you die. With larger estates, these taxes can usually be avoided by using a certain type of trusts.

Our plan is to continue to provide answers to frequently asked questions as part of the blog postings. Should you have any questions at all, please contact us at 1-800-798-5297.