How Taxes Might Be Affected By Long Term Care Benefits

Long term care insurance policies offer a great deal of benefits that are exempted from federal taxation and most state income taxes. Premiums paid on the policies are treated like health insurance premiums, so they qualify for federal income tax deductions. However, there are limits based on age.

The federal government’s tax deductible limits are based on total annual premiums paid and the age of the policyholder. For people age 40 and under, the maximum annual deduction on long term care insurance is $360 for 2013. Those aged 41 through 50 have a maximum annual deduction of $680 while people from age 51 through 60 have a maximum deduction of $1,360. The deduction for people from age 61 through 70 is $3,640 while those over age 70 have a current maximum deduction of $4,550.

The tax-exempt status on premiums paid for long term care policies is different from those paid for life insurance plans. Life insurance premiums often times only are tax exempt when the benefits paid out from them qualify for income taxation. If a life insurance plan qualifies for tax exempt status when paying premiums, the benefits typically are taxed by the federal government and some state governments as income.

To qualify for federal income tax breaks and most state income tax breaks, a long term care insurance policy must be guaranteed renewable and not grow cash value over time. Such policies are underwritten by life insurance companies. The federal government currently does not tax benefits paying no more than $320 per day. Amounts above $320 might be taxed as income, but the amount is adjusted each year to account for inflation.

Generally, daily benefits that exceed the current $320 federal limit but do not exceed the daily cost of extended care will not be taxed due to the fact they are spent on care instead of amounting to additional income. Total insurance benefits are reported to the federal government by life insurers, who issue 1099 tax forms to policyholders. Policyholders then must claim any taxable amounts on a federal Form 8853.

The benefits can be exhausted quickly when looking at the average cost of care. A semi-private nursing home charged an average rate of more than $220 per day in 2012, which is equal to more than $80,000 per year and easily could exceed even the best year of earnings for most people during their working careers. An assisted-living facility is more affordable at about $44,000 per year in costs with other services costing more. Home health care costs ran about $21 per hour in 2012, making in-home care the most affordable of long term care services.


Advantages and Disadvantages of Short Term Insurance Plans

Short term health care insurance policies are becoming more popular by the day due to its flexibility as well as affordability. Many low-income households have no choices other than opt for these short term insurance plans especially when long term plans are not affordable. Although these temporary plans have their own set of limitations, these drawbacks are shadowed by several advantages that are offered by these flexible packages that make them extremely attractive, especially for those who can only afford low income health insurances.

What exactly are the disadvantages of short term health care coverage? Well, for one, it is extremely easy to obtain as application processes do not consume time, you could probably obtain approval within a day of applying. This makes the application process simple, thus many flock to health insurance companies get these packages. Another primary advantage is the low premiums, this would be especially attractive for those who cannot afford comprehensive health insurance plans. Temporary health care insurance plans also work perfectly for travellers who require insurance in the country of travel during vacations or excursions, as well as people who are between jobs or freshmen out of college. The flexibility of these plans allows you to choose how long you want to be covered, and lets you determine how much you want to pay for your premium (would reflect on the extent of coverage that you receive).

Nevertheless, these plans do come with their drawbacks as well. With these health care insurance packages, renewals are not guaranteed, thus once your policy expires, you would have to re-apply and hope to obtain approval once again. This could prove to be a little troublesome, as durations of the policy are normally between 30 and 360 days only. Short term health coverage also does not include optical, dental nor medical check ups, thus you might incur extra expenditure if you need medical attention on these.

As a conclusion, short term health insurance plans work well for those who are in a financial transition period, or needs insurance during travelling. If the limitations of these plans do not deter you, then you would be happy with what temporary health care insurance plans can offer for your benefit.


Insight on Term Insurance Plans

In today’s age, people always want to secure the financial future of the family, so they can lead a decent lifestyle even after their unfortunate demise. Term plan is the answer to secure your family against financial hardship, when you are not around. Buying a term insurance policy provides a sum insured to the nominee/beneficiary, in the event of death of the life insured.

Benefits/Advantages of buying a term plan

Death Cover: Term plans provide pure life cover and it becomes a must buy, if you are the only wage earning member in the family. In case of your untimely death, it pays an amount equivalent to the sum insured to the family, so their finances are not affected.

Fulfill Financial Objectives: In case of untimely death of the life insured, a one time lump sum payout equal to the sum assured helps accomplish major financial goals like child education and marriage. The payout from a term insurance plan also helps pay off debts such as home loan or car loan.

Ensures Regular Income: Some term plans are available with lump sum payout plus monthly income to the family, when you are not around. These types of term plans help your family meet the regular expenses with ease.

Attains Maturity Amount: Typically, term plans do not offer any maturity benefit, but TROP plans offer the maturity benefit, and thus, returns the paid premiums at the maturity of the policy, provided the insured survives through the policy term.

Opt for Additional Coverage: You also have the option to choose riders with a term plan. Riders such as Accidental Death Benefit, Disability rider, Critical Illness, and Income benefit Rider help enhance protection to your base policy.

Major factors to consider before buying a term plan Want to buy a right term plan that can ensure the financial well-being of the family? Following are the key aspects you should consider prior buying the plan.

Adequate Cover: Choosing a right cover amount ensures that your family gets the payout that can cover day-to-day and other major expenses like children’s education/marriage, paying off debts, etc. Buying a plan with an inadequate cover is of no importance.

Policy Tenure: It is advisable to choose a policy tenure, so you can pay off all major financial liabilities. Avoid choosing a shorter policy that may end up when cover is required the most. It’s best to opt for a policy that offers flexible tenure options, so you can choose tenure depending on your protection needs.

Consider Inflation: When looking to buy a term plan, it is advisable to make an estimate about the inflation and then get a life cover that can easily cover your family’s financial expenses at a time say 20 years from now. You may consider the inflation rate while picking the sum assured for the policy.

Claim Settlement Ratio: Claim Settlement Ratio gives you an idea for the number of claims settled by an insurer. Higher ratio signifies that the insurer is reliable, when it comes to settlement of claims. It is thus advisable to choose an insurer that has the highest claim settlement ratio.

Choose Riders: When it comes ensuring financial protection for the family, you never want to compromise it in any manner. Choosing right riders with the term plan always boost protection. Riders help enhance protection, provided you have opted for the most appropriate rider/s. Riders are available on payment of additional premium, so choose it wisely.

Read Policy Terms: It is advisable to go through the policy benefits & inclusions and term & conditions, so you can assess the suitability of the plan for your family. Choosing the right term insurance plan would help build a secure financial future of your family.

Compare Plans Online: Prior buying a term plan, it is essential to compare plans from several insurers. Comparing plans online provide you an option to explore various term plans & its benefits. It helps you figure out a plan that would be the best fit. Insurance comparison portals such as helps you make an easy comparison. You can also buy it from there with huge discounts.

Assess your protection needs, choose a term plan and invest with the right insurer is the key. Insure your life and ensure your family’s protection.


ARP Long Term Care Insurance Policies

ARP is the leading non-profit membership organization for people fifty years old and older in the United States. According to ARP, the best type of long term care (LTC) insurance policy, which may cost you thousands of dollars a year based on your age and your health status when you apply for it, is one which:

* It is clearly explained when you will be eligible for coverage
* It is clearly explained just how your eligibility for claims will be determined
* Requites no hospitalization time to make you eligible to start receiving benefits
* Will be automatically renewed for as long as you pay the premiums, and will allow you to stop paying premiums once benefit payout begins.
* Has one "reasonable" elimination period (like a deductible; ARP defines "reasonable" as 90 days) for the life of the policy (having an elimination period keeps your premiums lower)
* Definitely covers pre-existing conditions that were disclosed when you applied
* Gives you options for inflation protection
* Permits you to downgrade your coverage if you can't afford the premiums on your current level of coverage
* Will cover Dementia
* Will pay for not less than one year of nursing care and home health care services
* Gives you the right of recision with no questions asked for a full premium refund during the first 30 days that you have the policy

ARP provides LTC policies which are underwritten by the Metropolitan Life Insurance Company (MetLife). These are considered to be some of the best LTC policies in the business, as MetLife agents are highly trained and MetLife has superior assets and claims paying strength. ARP advises people who are interested in buying the best long-term care insurance policies consult either a professional and licensed insurance agent or a financial planner. If these professionals don't advise you, you run the risk of being tempted into not including some of the most important features such as those listed above because the sales agent will try to sell you on lower premiums. Lowering your premiums at the expense of any of these most important features is not worth it.

ARP has now also entered into a relationship with Genworth to provide a portfolio of long-term care coverage with limited features and benefits. These are group plans that offer coverage for significantly lower premiums. ARP group plans for LTC have fewer options than an individual plan would. The prominent features of these group plans include:

* Either a 3 or a 5 year benefit period (benefit multiplier).
* A three-year plan will only pay out 75% of your total benefit to cover home care costs.
* A 90 day elimination period for all care: this means that on average you'd have to pay approximately $ 18,000 out of your own assets and / or savings before your benefits would kick in.
* No survivorship benefit option. On individual LTC policies this is an option that states that if both spouses have a policy through ARP for 10 years and neither one has a claim during that time and one spouse dies, the surviving spouse keeps their LTC policy without having to pay any more premiums .

While this new ARP / Genworth group LTC plan may be right for some people who think they would like their long-term care insurance to have lower premiums, the limitations in features and benefits could make these policies more expensive in the long run if a policy holder needs to make a claim. It's always vitally important to remember that especially when it comes to long-term care insurance you get what you pay for. Higher premiums (with respect to your age and health status) now means greater benefits later on should you ever need to make a claim against the policy.

Auto Loans

Longer Auto Loan Term: Is It Right for a Bad Credit Car Buyer?

Auto loans are tricky. A single error can ruin your financial stability and earn you high interest rates in the future. So, it is important that you understand every aspect of the loan process and make a wise decision.

When it comes to analyzing the multiple aspects of an auto loan, loan term takes a backseat. If you are in the loan market and confused over choosing the perfect auto loan program, do not commit the mistake of ignoring the loan term.

What are the Different Auto Loan Terms offered by Lenders?

A couple of years ago, the recommended term offered by lenders was 5 years or 60 months. However, the time has changed. Today, you can easily obtain 8 years or 96 months loan. Also, there have been instances where you can keep making payments on an auto loan for 9 years or 108 months.

Is a Longer Auto Loan Term considered as a Boon for Bad Credit Car Buyers?

If you are a bad credit car buyer, you will obtain higher interest rates than a good credit car buyer. Lenders understand that higher interest rates will make monthly payments difficult for you. So, they provide longer loan terms to make monthly payments bearable. Does it mean a longer loan term is a boon? It’s time to understand the financial effect of it.

The Interest Amount

If you have bad credit history, lenders will provide you with high interest rates. And, higher interest rates over a long period of time means higher amount of interest.

The Upside Down Situation

If you obtain a short-term auto loan, you will be in an upside down situation for the first couple of years. But, if you opt for a longer loan term, you will owe more than the car’s worth for several years. It is because you will make smaller payments every month.

The Selling/Trade-In Problem

If you are in an upside down situation, your car has no equity. It is difficult to sell such a car and buy a new one. Also, it is a challenging task to trade-in the car for another vehicle.

The High Maintenance Cost

If you opt for it, you will face difficulty in selling the car. And, if you keep using the car for several years, you will have to take care of increased maintenance cost such as higher repair cost and greater fuel expenses.

When is a Longer Auto Loan Term recommended to Bad Credit Car Buyers?

It makes financial sense in the following situations:

1. If you have received very low interest rates on the loan

2. If you can opt for substantial down payment and reduce the chances of an upside down situation

3. If you use your car for a very long time

There is nothing wrong in opting for a longer auto loan term. But, it is important to ascertain your situation before making a decision. Remember to look before you leap.

Wealth Building

Make Money Fast – A Blueprint For Building Longer Term Wealth

This method of making money fastHere we are going to look at a way anyone with a bit of seed capital can build long term wealth.

You don't need a lot of capital and you don't need to rely on luck and finally, you don't need more than average intelligence – all you need is a willingness to learn and apply your knowledge.

relies on doing the following:

1. Having desire and believe and learning

You need to want to make money and have a burning desire to be successful and accept the responsibility for doing so.

2. You need some seed capital

You need a few thousand dollars to get started.

You are going to put one of the most powerful tools to build wealth quickly and its leverage:

3. Leverage

Leverage simply allows you to trade much more money than you actually have.

For example, you have $ 3,000 and you can leverage this to $ 600,000 at a leverage of 200: 1.

You can use this cash and you wont have to borrow it – it's given to you in the industry we are going to look at.

4. Risk Control

When leverage is used you must have effective risk control and this means running your profits and cutting your losses quickly.

5. Your method

Your method will involve simply looking at graphs and spotting repetitive chart patterns, that occur all the time.

6. Time

Learning this method of making money fast will take about 3 weeks and then you need just 30 45 minutes a day to make money fast.

So what is the opportunity?

The opportunity is trading global FOREX markets.

Before you say I couldn't do that!

Consider this:

In an experiment legendary trader Richard Dennis, took 14 people who had never traded before and showed them how to trade in just 14 days.

These traders known as "the turtles", went on to become some of the most famous traders of all time and made millions.

You Can Learn a Method To Make Money Fast

Everything about trading can be specifically learned and you can learn to make money fast by trading global FOREX and all the information you need is available free on the internet.

The worlds Most Exciting Way To Get Rich

The FOREX markets move in trends and currencies reflect the underlying health of the economy.

If you look at any chart or graph you will see they move in a sustained direction for long periods of time.

Your aim to make money is to buy strong currencies and sell weak ones.

As one currency rises another must be falling and vice versa creating constant opportunities for profit.

If you have the willingness to learn you can soon be the making profits and building long term wealth.

Wealth Building

Wealth Building 101 – For the Long Term

Whenever we read about building wealth or even attend a seminar for that purpose, we usually start by assessing our present financial status. When Building Wealth by Russ Whitney was first released in 1994, it was hailed as a cutting-edge, comprehensive book that offered a step-by-step plan to reach financial independence and build long-term wealth.

With a successful wealth building strategy comes the understanding of what kinds of diversification offer you the protection you need from taking great losses in the short and long term. As far as courage goes when it comes to wealth building, many people tend to be like the cowardly lion from the Wizard of Oz.

Most of the people I talked to have college degrees, but they didn't know the basics of wealth creation. Sure, you could fail and that's what stops most people succeeding, but if you have the right method and the right attitude, you can win in building wealth. Once you have set the goals for your wealth building, the next step of financial planning is to lay down a feasible and precise plan.

They say "If you can't defend you won't win no matter how good your attack is" and it's the same in creating wealth. The first and utmost important thing for wealth building is that you have to have a big enough nest egg to grow your money no matter what strategies you use – real estate investing or stock market investment. The key is to maintain a will do mindset, use what you've got that may have more value to others, and find inspiring ways to have other people invest in your wealth building program.

The key ingredient that separates winners from losers is discipline and playing the odds at the right time, if you adopt the mindset to succeed, have confidence and are prepared to take calculated risks you can win in what is probably the most lucrative of all ways to build wealth fast. To build wealth you need to balance the risk reward and aim for the highest reward, with low downside risk.

Land in the right location tends to appreciate at a strong upward rate, with very low downside risk and tends to have far better risk reward for example than mutual funds. Its not just the upside potential it's the fact that it tends to lack downside risk. When you invest you want to compound your money and make your money do the work of making more money and this means not aiming for the biggest growth but the best growth you can with low downside risk.

Consider this, if you make 100% on 5,000 you have $ 10,000 but do the same again and you have $ 20,000 and this exponential growth can build huge money in time. Building wealth means finding out what you can do, and what you can do to make money with the skills that you have. Financial growth involves the ownership of multiple money producing assets that flow to you, not money draining assets that flow from you.

One of the least utilized techniques for building wealth is to set aside money in separate accounts.Another important aspect of building wealth is to know what to do when the money does start to come in. If you are unsure of where to start and feel like you just aren't cut out for wealth building, there are programs that will instruct you further.

Once you have a goal, created a plan, and disciplined to execute the plan, the strategies and the techniques you learned from wealth building seminars or real estate investment seminars would take the course of your wealth building further.


Forex Day Trading – Why Day Traders NEVER Win Long Term

If you are new to Forex trading you may consider day trading but beware of the fact that day traders ALWAYS lose for the following reason:

All short-term price volatility is random

There are countless millions of traders each day that trade trillions of dollars worth of currency and to say that you can measure what they will do in a few hours or a day is the biggest myth of currency trading.


You may say that you have seen forex trading systems that claim profits and what they do is claim and NEVER produce a real track record.

You normally get the following:

1. Outrageous Claims

Advertising copy pure and simple, with no substantiation – designed to appeal to the greed and naivety of the buyer.

2. A Hypothetical Track Record

Let me explain what this is, for those of you who don't know:

It's a hypothetical track record done in hindsight KNOWING the closing prices! How hard is that?

Anyone can do it and there not worth the paper they're written on. The fact so many traders don't question them or don't ask for a real track record, means they lose and wonder why.

Anyone can make money knowing the closing prices but in Forex Trading you don't get that luxury – its what makes forex trading so hard.

The reason you don't get a real time day trading track record is simple – day trading DOESN'T work.

If it did you would see a day trader with a real track record but of course if you try and find one you're in for a long search.

Day Traders don't make money – PERIOD.

If you want to make money with forex technical analysis you need to trade in time frames where the data can help you get the odds on your side and this means normally data of a few weeks minimum, not a few hours.

Think about it – if you have random volatility that can and do take prices anywhere in a day, its impossible to apply any technical tools to it. The tools maybe good but the data is unreliable and that's why day traders lose.

The proof is a real time track record and you wont get one in day trading – try asking one of the vendors who try and sell day trading systems for one and get ready for a long search.

Day trading does not work and never has and it's one of the biggest myths of trading that forex traders fall for – dont fall into the trap or you will lose to.


Day Trading Versus Long Term Trading – Find Out Which Wins

Trends rule in the Forex market. Every trader loves a good, strong trend. As traders, many of us like to make quick profits. Who doesn’t? The problem is that by just focusing on making quick profits, we often overlook a much more profitable strategy which is the long-term trend.

First let’s discuss the anatomy of a short-term trade. A short term trade can last anywhere from less than a minute to about 20 minutes, if you get really lucky. A 20 minute trade should return huge profits. Those are the uncommon trades and the 1 to 5 minute trade are more common when day trading. As a trader, you must make a split second decision of whether to enter a short term trade.

A savvy trader will set both exit points, profit and stop-loss, when entering a short term trade. Most traders, however, set a stop loss, but don’t set a goal for their profit leaving the exit at their discretion and, often, to luck. If you do short term trading, set your exit points before entering the trade. You can always adjust them as the trade progresses, but you will be protecting yourself against sudden reversals and changes of market sentiment.

Long-term trading in Forex is often overlooked and even frowned upon by many traders. For one reason or another the belief among most Forex traders is that most money is made scalping the market and that holding positions overnight is not a good strategy. Well… That assumption is wrong. The Forex market is very much like the stock market in that aspect and those that trade the long term charts, whether you use a day or weekly chart, have a better chance of making unbelievable gains.

The reason for it is that, except for exceptional events, currencies make their big gains and losses over longer periods of time and not in a 30 minute time span. If you take a look at the long chart of any currency pair, you will see that, had you traded the long term chart, you would maximize your profits. That is because instead of just making small one day gains on a currency that is trending, you would ride the trend for several days, weeks, and, sometimes, even months. I ask, where do you see the opportunity for bigger profits?

I agree, the long term chart offers a better chance to maximize your profits, but it takes discipline and reconditioning your mindset to stay in a trade for a much longer period of time.


Law of Attraction – Ethics and Long Term Disability

Just on to day was an article on “The Secret,” the book that has taken the world (literally) by storm outlining what has commonly become known as The Law of Attraction. While there is nothing new about this “Law” – it’s been written about for decades – what is new is the presentation and the popularity in our culture.

So what’s really at issue? Let’s look an example. Not long ago I heard a lady expressing how “The Secret” had changed her perspective – how she was going to use the law of attraction to change her health and wealth. She was pumped and full of enthusiasm. Seems she had been ill for some time and felt that through using “The Secret,” she could attract the funds she needed to seek some desperately needed medical help. On the surface everything seemed reasonable. You attract to you what you seek or what you hold in consciousness. Therefore ask and you will receive, a fundamental tenant of “The Secret” or “the Law of Attraction,” should yield the results that you seek.

“Should” – but here’s there’s more to the story. Seems the person seeking funding for medical care is on long-term disability. There is no doubt that the individual is ill and needs medical attention. But as Paul Harvey would say – here’s the rest of the story. The person in question contracted her illness 20+ years ago. That was not revealed to the company through whom she has long-term disability. In her words, “has they known when I got sick, it would have been considered a pre-existing condition and I would not have received my disability benefit. So I never talk about those early days.”

Wow…my first thought was here was someone who knew that perhaps they wouldn’t qualify for a benefit, but was willing to play the system for personal gain. Would they willing to be honest and accept the consequences? Again, let me make it clear – I don’t doubt the illness – I’m concerned about the ethics of taking what may not be rightly theirs. But the story goes deeper.

While on long-term disability the individual in question found out that the insurance company had her under investigation. It seems that insurance companies are quick to investigate in order to avoid fraudulent claims or payouts. Do insurance companies use ethical tactics in order to find out the truth? Probably not – however, there have been many documented claims of disability when, in fact, it was not 100% true. Does this justify unethical investigational tactics? No, but one could see how that could apply when the rest of the story is revealed.

Let’s take it a bit further. A person who has 100% disability prepares for a trip to a large city in anticipation of a major performance at a world renowned venue. Wait – this is confusing, I thought folks with disabilities – especially 100% were, well let’s say, challenged with strenuous effort. I agree. But let’s look at the facts – packing suit cases, traveling to the airport, boarding a plane, going to the hotel, practicing for hours (in anticipation of the performance), standing for hours (before and during the performance) and then attending a celebration meeting following. Doesn’t sound like someone who is totally disabled.

But there’s more. How did this go undetected by the insurance company? Good question. One suitcase was wrapped up like a gift so that it would not appear suspicious as it was taken out of the dwelling. And, upon return, the disabled individual exited (not at her dwelling), but a ways away – so that she could move behind the building – jump a fence – and sneak in the back door so that anyone watching would not know that she returned. And what about the suitcases. She had them taken to another location so that she could unpack them a little at a time – carrying the contents in grocery bags – again to fool any insurance investigator who might be looking.

“I don’t want them to know I’ve been away. Otherwise, they would follow me and use the trip against me in their attempt to deny my claim,” stated the individual. It appears that the insurance company would contend that she could do some work – and while that might be true – she sure didn’t want to let them know that.

While I will say, yet again, that I don’t doubt her illness – I am amazed at the lack of ethics and integrity involved in trying to dupe the insurance company – thereby, enabling the ability to gain financial benefit.

But what does this have to do with the “Law of Attraction?” There are many “laws” that we live under and through which govern our world as it operates daily. There’s the “law of gravity.” We can’t deny that. Likewise, there is another law – some know it as “You reap what you sow,” or the “law of cause and effect.” Either way, as a motivation speaker, I find that I am called up to speak to groups about the application of this law – as I have lived through both the consequences and benefits of it’s application. I speak first hand on Choices: Negative Consequences – Positive Results a keynote speech that outlines the power we have as individuals based on the choices we make. Further, the presentation, Make It Happen is a keynote presentation outlining the practical application of the “Law of Attraction.”

What seems true is that the laws we speak of work only if they are congruent with other universal laws. For example, the “law of attraction” will not reward someone financially if they rob a bank, as that is in congruent with the “law of cause and effect,” which will generate a negative consequence for the robbery – prison. Similarly, one will not be rewarded with positive results long term through lying.

We do reap what we sow and, generally, on a universal level we have in our lives what we attract to us. In this case (I may be proved wrong – but I don’t think so), I doubt that the universe, through the “Law of Attraction” will provide the necessary funding for the medical care this person seeks – since such attraction would be in congruent with other universal laws. Dishonesty, unethical behavior, or lack of integrity, all combined will produce an outcome that is less than this persons best.

As a motivational speaker who speaks on the “Law of Attraction” as well as the “Law of Cause and Effect,” I feel compelled to share with this individual the truth about the application of these laws. Yet, after several conversations – I’m quite convinced the message won’t be heard. So often we get so caught up in our web of deceit that we can’t see the truth – even when it’s in front of us. More importantly, we may not be willing to accept the consequences of changing our behavior – and at that point, the consequences – when they appear – will be more dramatic than we might ever anticipate. Insurance fraud is punishable by prison – which is not the outcome being sought.