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Frequently Asked Questions

Find answers to frequently asked questions about health and life insurance.  Long-Term Care Insurance | Umbrella Liability

Q: Should I consider Long-Term Care insurance?

A: With costs approaching and frequently exceeding $30,000 annually, this is an area of concern to all, especially those who have been successful in accumulating significant assets.

Extensive planning is often done to conserve these assets and protect them from high estate taxes. It is equally important to consider the effect a long-term stay in a nursing home can have on an estate. Death taxes and a long-term illness can exhaust accumulated assets. To avoid having to "spend down" assets before government programs (Medicaid) will pay for long-term care; a long-term plan may be purchased that will provide the dollars necessary for care. As with most types of health insurance plans, the premium increases as we age and the risk increases. The following chart shows representative annual premiums for $100/day, 60-day waiting period, 5% compound inflation benefit at various ages.

Issue age 50:        $ 552/year
Issue age 55:        $ 723/year
Issue age 60:        $ 993/year
Issue age 65:        $1,437/year
Issue age 70:        $2,097/year

Other optional benefits such as home health care are available for an additional premium. As in any estate planning situation, with long-term care the earlier one starts in planning the solution, the lower the cost.

Individuals who have been successful in accumulating an estate should be careful in planning for estate taxes and long term care costs. We would be happy to talk with you about the need, the benefits and the costs as they would apply to your situation. Please give us a call.

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Q: What is an Umbrella Liability policy and do I need it?

A: Skyrocketing court settlements and medical costs can cause uneasy feelings about the adequacy of insurance protection. Liability insurance pays for injuries to others due to negligent acts by you or another covered person on your policy. Although the liability insurance provided under a home or auto insurance policy is adequate for most situations, in a few instances large lawsuit settlements do approach or exceed the limits of these policies.

An umbrella liability policy is designed to give you peace of mind from this concern. It adds one million dollars (or multiples of $1 million) of protection to the liability limits of your home and auto insurance policy.* Should a judgment against you exceed the limits of that policy, the umbrella picks up the unpaid portion up to the umbrella policy limit.

Persons most likely to purchase an umbrella policy are:

  • "Likely targets" for a large lawsuit—professionals, business owners, property owners, higher income individuals, etc.
  • Those who want greater peace of mind knowing that their life savings will be protected from a financially devastating lawsuit.

Coverage cost varies, but it is generally $115 to $150 per year for a $1 million limit. If you would like more information on this topic, please call us. We will be happy to discuss it with you.

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*The umbrella can also increase the liability limit for your boat, rental property, motor home, recreational vehicle, motorcycle, vacation home and others.
Insurance products are offered through Ohio Valley Insurance, subsidiary of Ohio Valley Financial Group. Products offered by Ohio Valley Insurance are issued and underwritten by various insurance companies not affiliated with Ohio Valley Financial Group and are not insured by the FDIC or any federal government agency, nor are they a product, deposit, or obligation of, or guaranteed by Ohio Valley Financial Group or any of its affiliates.