Long-term care insurance doesn’t have to cost a lot.  A new survey says that a 55-year-old can expect to pay $723-per-year for a base level of protection if they are married or $1,060 if they are single.

At about $20 per week, an individual can purchase a pool of money of about $172,000 to pay for long-term care services in the future. Wait until age 65, and the cost estimate increases to $63 per week based on age, higher coverage level to keep pace with inflation and lack of a good health discount, according to the American Association for Long-term Care Insurance.  “Over half of all individual applicants are between ages 55 and 64, and one third purchase a daily benefit of between $100 and $149,” the survey found.

 While the cost of a policy will reflect your individual needs and preferences, here are some basic facts about the cost of  long-term care insurance:

 Age – the younger you are the less the cost of your premium will be.  That’s why it has become popular to purchase LTCi in your 50s.rather than in your 60s or at retirement.

 Health – if you’re healthy you can get a discount of about 10-15% depending on the insurance company.  The more health issues you have, the higher the cost of the coverage, or you may find that you don’t qualify at all. 

Partner discount – almost all companies offer a spousal discount – a discount of about 30% if you both apply and are approved for coverage.  But that benefit can extend to people living in the same household whether domestic partners, or family members (sisters, mother, daughter etc) living together.

 Loyalty discount – some companies will provide a discount if you own another type of policy with them (health insurance, annuity, life insurance etc.). 

 Family health history – If you have a family history of chronic disease such as Alzheimer’s, MS, Parkinson’s, stroke, etc. you may want to purchase a higher level of coverage (daily benefit and years of coverage).

 It is important to know the cost of long-term care coverage in your area (or where you will be living when you retire) since that will be the basis for deciding the daily benefit amount.  And whether you want insurance to cover most of the cost of care or whether you want insurance to cover a portion of the cost of care and you’ll pick up the rest.

 But one of the most important things to do in buying long-term care insurance is to get rates from different companies.  Rates vary dramatically, and some companies have better rates at certain ages than others.  An agent knowledgeable in long-term care insurance can help guide you.

 And remember, long-term care insurance funds long-term care.  You’ll benefit from first having a plan for long-term care – do you want to stay at home as long as you can?  Will you move to a continuing care community?  What roles will family play in your care? Having thought through questions as these will help you determine if long-term care insurance is right for you and the right level of coverage.

So don’t let fear of high costs keep you from looking at long-term care insurance. If you end up needing care the costs can be astronomical– and  then it’s too late to consider insurance.

 Baby boomers will be leaving metropolitan and suburban areas and heading for rural and small-town destinations seeking lower living costs and a higher qualify of life, a new government report predicts . The U.S. Department of Agriculture’s Economic Research Survey predicts the number of boomers between 55 and 75 living in rural areas will increase from 8.6 million to 14.2 million between 2000 and 2020.

 If you are one of those baby boomers who think you might be heading to a small town, keep in mind that those towns will be facing a rising demand for housing, transportation, health care and retail to support the growth.

 Health care costs can especially be impacted – and they are not necessarily less expensive.  Long-term care costs, for example, can be higher where there are fewer sources of care and more demand.  See the Longevity Alliance report on the Hidden Costs of Moving for more information about how moving can alter your health insurance costs.  These are often the kinds of costs we forget to factor into a move to a new area.

 And if you have a Medicare Advantage plan you may find that you will have to switch to Original Medicare and a Medicare Supplement plan since network plans are generally less available in rural areas.

 And if you are planning to move and work remotely, remember the technology connections aren’t always as accessible in rural areas.  You may find yourself back on dial-up.

 Marketwatch listed 15  counties that are in the top 50 areas expected to grow.  

So if you’re considering moving to get away from it all, you may find yourself in a hot new community surrounded with people just like you.

Thinking of going  rural, what’s driving you to head to the country?

Who would have thought the words Britney Spears and Alzheimer’s disease  and long-term care would appear in the same sentence.  Yet as researchers from Cleveland Clinic are finding some new and interesting ways to help identify those most at risk for Alzheimer’s.  The researchers found that when people are shown a picture of popular people, like Britney Spears or Johnny Carson, their brain acts very differently than someone who is not at risk, according to an article in Time Magazine.

Unlike many other research projects, this isn’t about curing Alzheimer’s’ but rather being able to identify those with high risk and finding ways to delay the onset of the disease.

It is estimated that about five million* Americans suffer from Alzheimer’s disease, and about 360,000 people are newly diagnosed every year. Alzheimer’s affects about 10 percent of people ages 65 and up, and the prevalence doubles roughly every 10 years after age 65. Half of the population ages 85 and up may have Alzheimer’s.

The financial cost of caring for someone with Alzheimer’s disease can be overwhelming and is estimated to be about $50,000 per year in direct medical expenses. When indirect costs such as lost wages and decreased productivity of sufferers and their caregivers are included, the annual costs of Alzheimer’s rise astronomically.

If your family has a history of Alzheimer’s, long-term care planning is extremely important.  Long-term care insurance is one way to help shift some of the costs from your family to an insurance company.  If you have a family history of Alzheimer’s consider a longer policy period (5+ years or more or lifetime coverage,) if you can afford it.  With this disease the option of staying at home for long-term care is often not possible.

If you are at risk for Alzheimer’s, Longevity Alliance recommends you develop a long-term care plan early and consider long-term care insurance as part of your plan to fund that care.  A diagnosis of Alzheimer’s make you ineligible for long-term care insurance.

For more information on Alzheimer’s go the Alzheimer’s Association.

As summer winds down, it can be a perfect time for baby boomers ,empty nesters and retirees to head out on vacation.  With gas prices moderating and hotel and travel deals abundant, it doesn’t have to break the budget.

 Check out travel discount sites for special rates on hotels, resorts, cruises and escorted tours.  If you are a member of AAA  or AARP  or Costco   you’ll find some specials through their websites.  If you’re looking for a fall beach rental, you’ll also find special rates on more properties than usual. 

If there is a particular hotel or resort you’ve been angling to stay at, this might be the year.  Call the property directly and ask what special rates or deals are available.  The more flexible you can be around dates, the better chance you have to land a deal that works for  your budget, too.

 Looking for an “all American” vacation?  USA Today lists 10 places to find true Americana   The Albuquerque Hot Air Balloon Festival in October sounds like the perfect thing to lift the spirits!

If you are an optimist, you just might be more prepared for retirement than those with a less sunny outlook.

While you might think a pessimist would be more worried and therefore more active in planning for retirement, research from Fidelity Investments found just about the opposite to be true.

The data show that investors with a more pessimistic outlook are less likely than those with a more optimistic outlook to expect a comfortable lifestyle in retirement (61% of pessimists, 83% of optimists). They are also more likely to be concerned about risks to their retirement income, such as Social Security benefits being reduced (45% of pessimists, 33% of optimists).

That sense of optimism carries into how well couple plans for retirement, too.  The Fidelity research shows that in 89 percent of couples, one partner is generally more optimistic than the other and the more optimistic they are, the more involved they are in the retirement decision-making process. In this situation, ongoing communication becomes even more critical to their overall financial success as a couple.

For example:

• Pessimists are twice as likely as optimists (25% of pessimists, 12% of optimists) to invest with the goal of preserving money and will accept considerably lower returns, while optimists are more likely to invest with the goal of creating an equal balance of capital preservation and investing for returns (39% of optimists, 25% of pessimists).
• When asked about their initial reaction to the recent market volatility, twice as many pessimists as optimists report “feeling a sense of panic and wanting to pull out of the market” (22% of pessimists, 11% of optimists), while significantly more optimists than pessimists say their gut feeling was to “stay the course” (77% of optimists, 57% of pessimists).

 So, if you are more pessimistic by nature see if it is holding back some of the actions you should be taking to have a more secure retirement.  If you’re spouse is the more optimistic, why not let some of  his/her power of positive thinking flow into your retirement plans?

When a loved one falls, you can see the physical injuries—but the emotional injuries are often just as severe. New technology may help those recovering from a fall feel more confident and be more active.

 More than 25 percent of elderly limit their activities after a fall, refusing to go on walks outside, or visit friends out of the fear they may fall again. Home monitoring – being able to track a person’s movement and get them help when they need it – is an important advancement since it has the potential to reduce cost of care and keep more people at home longer.

 Falling is the leading cause of death from injury for people age 65 and older.

 You have probably seen the advertisements for Personal Emergency Response Systems (PERS) like the one that says “Help I’ve fallen and can’t get up”. While this technology has advanced over the past few years, it requires the individual to wear a button that they can push to get assistance.  A monitoring box in the home picks up the alert and calls the emergency response center. 

 The next generation of home monitoring systems is far more advanced.  Sensors attached to the wall are able to register activities in the home, such as when the person gets out of bed and whether she stops at her medication dispenser, and can alert loved ones to deviations in routine that might indicate an accident or illness. The caregiver is updated by an electronic computer report every morning.

Monitoring systems such as these aren’t found in many homes yet. And for some, privacy is an issue.  But this type of system can bring peace of mind to long-distance caregivers and continued independence to an older person.  The basic package can range from $50 to $85 a month for the motion sensors and remote monitoring system.

Paying for a System

A PERS can be purchased, rented or leased.  Neither Medicare nor Medicaid (in most states) will pay for the equipment, not will most insurance companies.  Purchasing generally costs between $200 and $1500 plus a monthly fee of from $10-$50.

For individuals with long-term care insurance, some policies allow you to use your benefits to pay for “transition” assistance.  It may also include minor home modifications that assist you in staying at home longer. Check your long-term care policy or call your insurer.  If you are purchasing long-term care insurance and staying at home for as long as possible is important to you, check to see if your policy includes a transition expense allowance.

 Here are some tips from the FTC   if you are shopping for a PERS.

• Check out several systems before making a decision.
• Find out if you can use the system with other response centers. For example, can you use the same system if you move?
• Ask about the pricing, features, and servicing of each system and compare costs.
• Make sure the system is easy to use.
• Test the system to make sure it works from every point in and around your home. Make sure nothing interferes with transmissions.
• Read your purchase, rental, or lease agreement carefully before signing
• Ask if the monitoring center is available 24 hours per day, 7 days per week.
• Ask about the average response time and staff training.

Medicare beneficiaries got some good news this week:  only a slight increase in rates on their Part D prescription drug plans in 2010.  The average rate paid is expected to increase to $30 from $28 in 2009 based on bids submitted by Part D plans, according to to the Centers for Medicare and Medicaid (CMS).

 “Although most Part D plan should have relatively stable premiums, all beneficiaries should compare their current coverage with the plans that will be offered in 2010 when information becomes available in October,” recommended Jonathan Blum, acting director of CMS’ Center for Health Plan choices.

 Premiums and benefits for Medicare Advantage plans and more details on Part D plans will be announced in September. Specific  rate and benefit information about plans is usually available in October and open enrollment period for Part D and Medicare Advantage plans begins Nov. 15.

If you are turning 65 or shopping for a new Medicare health plan you can find more information at Medicare Made Simple.

Baby boomers and seniors — if your retirement plan counts on returning to work, you might want to do a bit more planning before you retire.  We just completed some research with retirees that found many new retirees thought they might go back to work someday.  But  few of them are considering re-entering the job market any time soon. 

The national survey, conducted by Harris Interactive for Longevity Alliance,  found that:

• Among retirees, 43 percent of them “seriously considered the possibility of someday going back to work” when they first retired.
• Only 16 percent of retirees say that they are currently considering leaving retirement.
• “Changes in personal finance” is a major consideration that would force a retiree to think about going back to work, with 42 of percent of retirees citing it as a factor.
• “Changes in healthcare coverage” is also important, at 29 percent.
• More than one in five retirees (22 percent) are thinking about how their lifespan could affect whether they go back to work.

 “These findings reflect the same kinds of sentiments we’ve been hearing from our customers,” says Longevity Alliance CEO Steve Zaleznick. “Retirees are very cautious right now, but not panicked. Their reluctance to rejoin the workforce only underscores the need for them to plan very carefully for the rest of their retirement.”

 So what do you do if you are planning for retirement now? Here are some suggestions:

• Make sure you understand what your income needs will be in retirement,
• Do a Social Security benefit calculation so you know what working a few more years means to your monthly income.
• Make sure you have a plan to cover the three big financial risks in retirement:  health care expense; long-term care costs, and outliving your money (longevity risk).

 “People understand that situations change and they are often open to going back to work for a variety of reasons,” he continued. “As economic conditions improve they should keep their eyes out for opportunities they might consider for either personal enjoyment and/or to respond to retirement income and health expense financing concerns.”

The value of our house has traditionally played a key role in retirement planning.  Cashing in that big gain would help bankroll our retirement lifestyle.  But the crash in home values has changed that for many people.  In fact, turned it upside down.

 A grim report from Deutsche bank says that the number of people with underwater mortgages (the house is worth less than the mortgage) will nearly double by 2011 to 48% of homeowners.  Those hardest hit are people who purchased between 2003 and 2006. 

If you find yourself in this position, here are four tips for dealing with lower home values and planning for retirement: 

1.  You only realize the loss if you sell.  So the longer you can stay in your current home, the better. Experts say 5 to 7 years may help you get back to an even position.  If you were thinking of selling because of issues around aging, there might be home modifications you can make that make it easier to stay in your home. The good news is that more of us say we want to stay in our home as we age.  So plan now on how to make that a possibility.   Or if assisted living or a continuing care community is right for you, find out what kinds of deals they are making for homeowners.  Many are cutting back on deposits or making special arrangements for those where the real estate market is slow.

 2.  If you were thinking about paying for long-term care services from gains from the sale of your home, now might be the time look at long-term care insurance.  The younger and healthier you are the easier it is to qualify and the less expensive the policy will be.  Make sure you look at a policy that includes care at home.

 3.  Don’t dip into the equity.  Over the past decade, many people used their house as a piggy-bank funding new cars, vacations, additions to the home, education and more.  First, distinguish the needs from wants.  Then look for other sources to fund the needs.

 4.  Review your financial plan and, if necessary, adjust your expectations about the value of your home if necessary.  Maybe it’s not as bad as you think.   And if you don’t have a financial plan, now’s a good time to get one.

 This article from Smart Money provides some good information about home values and what to watch for that can impact the value of your home

 Advocates have long encouraged consumers to monitor their credit reports as a way to detect identity theft.  But, your credit report has information that also affects whether you can get a loan – and how much you will have to pay to borrow money. And auto insurers have been using credit score as a predictor of risk for a number of years.  And, employers often check credit score before they decide whether to offer you a job. So an error in your credit report can cost you.

 Getting Your Report

You should get a copy of your credit report to: 

• make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job 
• help guard against identity theft. That’s when someone uses your personal information – like your name, your Social Security number, or your credit card number – to commit fraud. Identity thieves may use your information to open a new credit card account in your name.

 The Fair Credit Reporting Act requires each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – to provide you with a free copy of your credit report, at your request, once every 12 months. The three companies have set up one central website, toll-free telephone number, and mailing address through which you can order your free credit report. See the box for web, phone and mailing address.  Make sure if you request a credit report you only use this information.

 Only One Official Site

Many other websites claim to offer “free credit reports,” “free credit scores,” or “free credit monitoring.” But, be careful. These sites are not part of the official annual free credit report program. And in some cases, the “free” product comes with strings attached. For example, some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a trial period ends. If you don’t cancel during the trial period, you may be agreeing to let the company start charging fees to your credit card.

 These sites often look like the official site at http://www.annualcreditreport.com. Some use terms like “free report” in their names; others have website names that purposely misspelled  in the hope that you will mistype the name of the official site. Some of these “imposter” sites direct you to other sites that try to sell you something or collect your personal information.

If you want to order your free annual credit report online, go to : http://www.annualcreditreport.com , or go to the FTC’s website (http://www.ftc.gov) which has a link to it. Once you have filled out certain information , you will be directed to individual websites operated by the three nationwide consumer reporting companies..  You may get offers to buy additional products or services while on the companies’ websites, such as credit scores or credit monitoring products, but you are not required to make a purchase to receive your free annual credit reports. You’ll have to pay extra to get your credit score.  But, your credit report is free

 If you get an email or see a pop-up ad claiming it’s from annualcreditreport.com or any of the three nationwide consumer reporting companies, do not reply or click on any link in the message – it’s probably a scam. http://www.annualcreditreport.com  will NEVER send you an email solicitation for your free annual credit report, use pop-up ads, or call you to ask for personal information.  

 Take the time to check your credit report.  If  you find an error, notify the credit agency that issued the report.  They are required by law to investigate items that are disputed.