Dave Ramsey's Long Term Care Insurance Recommendation Addressed

LOS ANGELES - July 9, 2013 - PRLog -- Los Angeles; July 9, 2013 - Dave Ramsey's recommendation that consumers consider long term care insurance is welcomed says the director of the American Association for Long-Term Care Insurance who notes Ramsey is mistaken in several critical areas.

"Dave Ramsey is one of America's most listened to financial radio talk show hosts and we welcome his recommendation that consumers look into long term care insurance planning," declares Jesse Slome, executive director of the long term care insurance industry trade group http://www.aaltci.org.

Slome shared Ramsey's post to a reader inquiry that read: "I’m a strong proponent of long-term care insurance once a person turns 60. Prior to that age you have less than a one percent chance of spending time in a nursing home, so I wouldn’t spend a dime on it until then.

Ramsey shared the rationale for his age recommendation by writing, "A lot of agents and companies try to sell long-term care insurance to people who are 40 or 50 years old, and I just don’t believe in that stuff. But once you hit age 60, your chances of using it increase almost daily. At that point, it’s a smart buy, and you’ll get a great return on the investment."

"This is where the great disconnect comes in and we'd welcome the chance to better educate Mr. Ramsey so he can best advise his listeners," Slome shared.  "Long term care insurance requires applicants meet health qualifications which become more difficult after age 60.  In fact, a quarter of applicants between ages 60 and 69 are declined coverage when they apply because of health conditions."  The percentage of declined applications increases to almost 50 percent after age 70.

"Setting the bar at age 60 will cause many of Dave Ramsey's listeners to wait to look into long term care insurance and find they are uninsurable," Slome cautioned.  "Today, one can buy newer policies in your 50s that lock in your health insurability and have features that allow you to add to coverage at older ages.  That is smarter planning we hope one day to make Mr. Ramsey aware of."

Furthermore, Slome noted that Ramsey's connection with nursing home coverage is 'old world'.  "The majority of long term care insurance today pays for home care," Slome notes.  "So much has changed except for the advice often shared by many and we will write to Mr. Ramsey with the hope of sharing some of the more current information."

Consumers seeking long term care insurance costs http://www.aaltci.org/long-term-care-insurance and to learn about newer planning options from a designated specialist, a member of the American Association for Long-Term Care Insurance, can also visit the organization's website or call 818-597-3227.