Rates from Bankrate.com
- Mortgage
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| Overnight Avg Rate | Latest | Change | Last Week |
|---|---|---|---|
| 30 yr fixed mtg | 4.13% |  | 4.08% |
| 15 yr fixed mtg | 3.09% | | 3.05% |
| 5/1 ARM | 3.22% | | 3.11% |
| 30 yr fixed mtg refi | 4.18% | | 4.08% |
| 15 yr fixed mtg refi | 3.16% | | 3.06% |
Why Boomers Seeking to Retire Abroad Face Limitations in Long-Term Care Insurance Payouts
NEW YORK ( MainStreet) — Celebrities, such as Mel Gibson, Harrison Ford and Gisele Bündchen are reportedly buying up beach front property in Costa Rica , and retiring Boomers seeking alternative long-term care options are following suit.
"More Americans are choosing to retire all over the globe but that can affect the amount of benefits they can claim from their long term care insurance policy," said Jesse Slome, executive director with the American Association for Long-Term Care Insurance (AALTCI).
Read More: 401(k) Withdrawals and Long Term Care
An estimated 1.4 million American retirees live overseas, according to Live and Invest Overseas, and as more Boomers look to retire outside of the United States, understanding how such a move can impact long-term care insurance benefits becomes vital.
“We've received an increase in the number of consumer calls questioning what happens to their long term care insurance if they move to a new state or out of the country, such as Costa Rica, Panama and Canada,” Slome said.
The difference in international coverage can be significant.
“It depends on when the policy was purchased,” said Mitch Abrams, managing director with Homewatch CareGivers. “The older policies were more lenient on providing support internationally, but the current plans are very limited on what benefits they’ll provide when you move out of the U.S.”
Read More: Long Term Care Insurance Tax Deduction
Many of the leading long-term care insurers impose a limitation on benefits when care is needed outside of the United States or territories, according to 2014 AALTCI data.
"You can purchase a policy designed to pay four years of benefits, but if the international limit is just one year, you'll either have to move back to the U.S. for care or give up the balance available," Slome said.
One thing that stays the same is currency. Claims are paid in U.S. dollars.
“Some international policies will mandate you are given care by a provider who has a license,” Abrams told Mainstreet. “So if a policy says care must be delivered by a licensing agency and you’re moving abroad, you want to pick a location that requires licensure of their agencies in order for you to realize that benefit.”
Typically, the international component of newer long term care policies is a lower and limited payment.
“MedAmerica provides a cash benefit once you are benefit eligible,” Abrams said. “Other carriers that provide international coverage today are Bankers Life but Bankers limits the lifetime maximum.”
Read More: How Genetics Could Increase Cost of Long Term Care Insurance
Find Low Auto Loan Rates in Your Area
WATCH: More personal finance videos on MainStreet | More videos from Lauren Lyons Cole
View Today’s Auto Loan Refi Rates
Read More: Gringo Retirement
"More Americans are choosing to retire all over the globe but that can affect the amount of benefits they can claim from their long term care insurance policy," said Jesse Slome, executive director with the American Association for Long-Term Care Insurance (AALTCI).
Read More: 401(k) Withdrawals and Long Term Care
An estimated 1.4 million American retirees live overseas, according to Live and Invest Overseas, and as more Boomers look to retire outside of the United States, understanding how such a move can impact long-term care insurance benefits becomes vital.
“We've received an increase in the number of consumer calls questioning what happens to their long term care insurance if they move to a new state or out of the country, such as Costa Rica, Panama and Canada,” Slome said.
The difference in international coverage can be significant.
“It depends on when the policy was purchased,” said Mitch Abrams, managing director with Homewatch CareGivers. “The older policies were more lenient on providing support internationally, but the current plans are very limited on what benefits they’ll provide when you move out of the U.S.”
Read More: Long Term Care Insurance Tax Deduction
Many of the leading long-term care insurers impose a limitation on benefits when care is needed outside of the United States or territories, according to 2014 AALTCI data.
"You can purchase a policy designed to pay four years of benefits, but if the international limit is just one year, you'll either have to move back to the U.S. for care or give up the balance available," Slome said.
One thing that stays the same is currency. Claims are paid in U.S. dollars.
“Some international policies will mandate you are given care by a provider who has a license,” Abrams told Mainstreet. “So if a policy says care must be delivered by a licensing agency and you’re moving abroad, you want to pick a location that requires licensure of their agencies in order for you to realize that benefit.”
Typically, the international component of newer long term care policies is a lower and limited payment.
“MedAmerica provides a cash benefit once you are benefit eligible,” Abrams said. “Other carriers that provide international coverage today are Bankers Life but Bankers limits the lifetime maximum.”
Read More: How Genetics Could Increase Cost of Long Term Care Insurance
Find Low Auto Loan Rates in Your Area
WATCH: More personal finance videos on MainStreet | More videos from Lauren Lyons Cole
View Today’s Auto Loan Refi Rates
Read More: Gringo Retirement
Energy Department Slashes Prediction for Next Year's Gasoline Prices
The Energy Department has again slashed
its prediction for next year's average price of gasoline across the
U.S., this time to $2.60 a gallon. That's 23% below the projected
average for this year and the lowest since 2009. If that comes to pass,
the price drop will save U.S. drivers $100 billion over the course of
the year. The Energy Department cut its gasoline price forecast for 2015
by 35 cents a gallon, in its most recent short-term energy outlook that
was released Tuesday. It was the second cut of more than 30 cents a
gallon in two months. The average national price of gasoline fell to
$2.66 a gallon Tuesday, according to AAA, 61 cents less than last year.
The national average has fallen every day since September 26.
Jon Kostakopoulos - 12/09/2014 5:51:08 EST
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