The government, both state and federal, is sending a strong message that it will not pay for Long Term Care for most Americans.
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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.
Are you looking for a fun date night activity for you and your spouse; how about shopping for Long Term Care insurance? Admittedly, that doesn’t sound like as much fun as dinner and a movie, but it could be an important step to securing your financial future.
We all tend to procrastinate on occasion. Our minds have a way of telling us that important matter can wait just a little longer; but procrastination can cost you. If you have been waiting to make a decision about Long Term Care insurance, now is the time to act.
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.
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.
You may be able to buy a Long Term Care insurance policy that covers more than just one person, or more than one kind of Long Term Care service. The benefits these policies provide often are called “pooled benefits.”
Have you ever looked at your Life Insurance or Annuity statements and wondered if you could be using the gains from these policies more effectively? One option you may have is to transfer some of that money to fund a Long Term Care policy through a 1035 Exchange. Not only would you be purchasing a very valuable tool for protecting your financial future, but you may also be relieving yourself of a hefty tax burden.
This is a critical part of getting the right Long Term Care policy. A good agent will not only know about the different companies and their policies, he or she will also assess your individual needs, answer all your questions, and provide ongoing service in the future.
Medicare Supplement insurance (Medigap) is private insurance that helps pay for some of the gaps in Medicare coverage, such as hospital deductibles and excess physician charges above what Medicare approves.
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.
There are two classifications of care usually associated with a Long Term Care claim. They are Custodial Care and Skilled Care. Be sure to understand which types of care you are eligible for under your Long Term Care policy.
It is very important to be aware of the requirements necessary to trigger benefits in the event that you need to file a Long Term Care claim. Guidelines vary, but can be found in the Outline of Coverage you will receive with your policy. The guidelines in your policy will have an impact on how easily you can qualify for benefits.
Just like your health and auto insurance, LTC policies have a deductible. For Long Term Care policies, the deductible is called the Elimination Period. This is the period of time your Long Term Care costs will be paid out of pocket before your benefits kick in.
One common misconception about Medicare is that it will pay for Long Term Care services. In recent years, the United States Government has begun trying to dispel this myth. The Social Security Administration’s annual statements now include the following warning: “Medicare does not pay for Long Term Care, so you may want to consider options for private insurance.”
In some very specific instances, Medicare will pay a portion of Long Term Care costs. Receiving this benefit can be difficult as there are several conditions that must be met in order to qualify.
Although Long Term Care insurance is rightly considered an important part of planning for everyone who dreams of an independent and dignified retirement, experts agree that Long Term Care Insurance is especially critical to women. The reasons ought not to surprise anyone who reflects upon the following.
Women are especially hard hit by Long Term Care. Seven out of ten caregivers are women. Many women often find themselves caring for children and an aging family member at the same time; a dual care giving situation that can take a toll on their emotional and physical well-being.
When discussing Long Term Care insurance with adults, it is not unusual to hear comments like, “I doubt I will ever be in nursing home,” or “no one in my family has ever needed Long Term Care,” or even “if I ever come to that point, I will have someone in my family shoot me.” The variations on this theme are numerous, but the underlying message is clear. Few of us believe that bad things will happen to us; bad things only happen to the other guy. Human nature powerfully insulates us from seriously contemplating the reality that most of us will eventually become frail and unable to care for ourselves independently. Or that we might have a stroke, a disastrous accident, or be diagnosed with a chronic and debilitating disease. Statistical risk data seems to become irrelevant when it comes to our personal future.