As you know, Long Term Care insurance is meant to provide assistance in the event of a nursing home stay. You may not know that many policies insure against the financial consequences of a nursing home stay and also provide coverage for Assisted Living Facilities. These facilities provide a range of care, depending on the patient’s needs, but do so in a setting which feels much more like home.
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LTC Insurance Blog
Simplifying the process of understanding Long Term Care, and helping you decide if Long Term Care insurance is right for you.
Many people assume Long Term Care insurance is meant to cover nursing home care only. This was true of the very first Long Term Care policies, but today’s policies have evolved to offer more options to policy holders, including Home Care. A good Long Term Care policy can actually allow you to stay in your home longer.
Discussing Long Term Care is difficult for both adult children and their parents. Waiting until a parent is ill or becomes frail due to an accident causes even more stress, so it’s important to begin the conversation early.
Choosing the right insurance company to issue your Long Term Care policy is a vital step to ensure you are purchasing a policy that meets your specific needs. Here a few tips to consider when choosing an insurance company.
Many leading companies have recognized the value of Long Term Care coverage as both a recruiting incentive and an employee retention tool. Because of certain tax advantages, Long Term Care coverage can be added to a benefits package with little or no cost to the company. The specific tax advantages vary based on the type of company.
Many people ask, "Should I wait to buy Long-Term Care insurance when I'm older because I don't think I'll need if for a long time. I'll be paying for it all those years that I won't be using it". This is a very good question.
There is so much press right now about the rising cost of Long Term Care Insurance, so it is important to remember the reasons why Long Term Care insurance is needed in the first place. If we just focus on prices rising we'll make a big financial planning mistake.
As Baby-Boomers across the country reach retirement age, the United States Government has realized that implementing federal programs to cover the cost of Long Term Care services is not feasible. The cost would simply be too great. As a result, the federal government has encouraged individuals to take responsibility for their own Long Term Care planning and offered certain tax incentives to help Americans do so. Tax Qualified LTC plans offer some very valuable tax advantages.
It’s a prudent and logical question for upper-middle and high income individuals to consider as they ponder purchasing Long Term Care insurance as part of their retirement plan. Having helped many such individuals plan for their future long term care needs, I’ve come to the conclusion that many, who think they have adequate capacity to pay for extended care giving services out-of-pocket, haven’t done the math as thoroughly as they should.
When counseling clients, some will say, “I think we have enough in our retirement savings to handle any long term care needs that might arise.” They may be right. With a few follow-up questions, I learn that they might have anywhere between $500,000 and several million dollars in retirement savings and investments. By providing additional information, I’m usually able to encourage a more realistic look at how far their retirement nest egg will last should they need extended long term care. Here are the key cost considerations that are often overlooked.