What is Long-Term Care?

Long-term care is a way to prepare for the future in case you ever need help taking care of yourself.  Long-term care services, including assistance with daily routines like bathing, dressing, and getting in and out of bed, are not covered by regular health insurance. This policy can help cover the costs of care if you have any debilitating disability or disease such as Alzheimer’s disease. This can include care in your own home, a nursing home, an assisted living facility, or an adult day care center. Long-term care insurance is part of a long-range financial plan.

The best time to invest in a long-term care insurance plan is in your 50’s or 60’s because you won’t qualify for long-term care if you already have a debilitating disease or disability. Plan ahead with long-term care insurance.

long term care insurance

How Long-Term Care Works

Once you have filled out an application for long-term care insurance and answer health questions, you can choose the amount of coverage you want. The policy is then approved and issued, and you start paying premiums. When you need care, you’ll pay out-of-pocket for a certain amount of time, usually 30, 60, or 90 days. After this period of time, the insurer will start reimbursing you for any care, and the policy will start paying out. Most policies pay up to a daily limit for long-term care until you reach a lifetime limit.

Reasons for Long-Term Care

Regular health insurance doesn’t cover long-term care, and neither does Medicare. The most these will cover is a short amount of time for home health care or rehab. Seventy percent of 65-year-olds will use some form of long-term care in the years to come. The main reason people buy long-term care is to protect their savings. Long-term care is expensive and can use up retirement savings very quickly. With long-term care insurance, you will have more options for better quality care. The more you pay, the better the care will be.

Cost of Long-Term Care

The cost of a long-term care insurance policy depends on a few factors. Depending on your age and health, you’ll pay more for certain health problems. Women usually pay more because they tend to live longer than men and are more likely to need long-term care. If you are married, premiums will be lower. Different life insurance companies charge more for the same care, so it is important to compare rates. Your premiums also depend on the amount of coverage you want.

Tax Advantages of Long-Term Care

Long-term care insurance policies can have some tax advantages if you itemize deductions. This is especially important as you get older. The federal and some state tax codes allow you to count part or all of your premium payments as medical expenses. Medical expenses are tax deductible if they meet a certain minimum amount. As you get older, the premiums you are allowed to deduct become more limited.

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