Long Term Care (LTC)

Long Term Care Insurance – Customer Friendly

There will be a point in your life when you need assistance with care that you can no longer provide for yourself. This type of care could be expensive, which is why you will need long term care insurance to cover those pricey expenses. This insurance has the potential to protect your family’s financial future, including your investments and savings.

What is It?

When you are unable to care for yourself due to an illness, cognitive impairment, or disability, long term care insurance could help pay for those expenses associated with your everyday lifestyle. This care insurance will not pay for treatment or to cure illnesses; instead, it helps with care related to daily activities:

• Getting around
• Bathing
• Eating

Long term insurance generally pays for the care that you need regardless if you are living at home or in an assisted living facility. Some insurance policies also cover adult day cares and care coordination.

Although 40% of employers offer long term insurance, approximately 2% of employees take advantage of it. These numbers are extremely low considering the fact that there are almost no government services available to help pay for long-term care. The benefits associated with the insurance offered through your employer include:

• Lower underwriting standards

• Lower cost

• Coverage could potentially include spouse, in-laws, and parents

• Benefits are not taxable income (Even in instances where the premium is paid by the employer)

• Any premiums paid by the employee could potentially be deducted as a medical expense (AGI rule may apply)

Cost

The cost associated with care insurance will depend on a variety of factors, such as:

• Age when buying policy

• Optional benefits that you choose (Example: benefits that increase with inflation)

• Maximum amount that the policy will pay out per day

• The lifetime maximum amount (Determined by the amount of days multiplied by the price per day)

Who Benefits?

Since you cannot predict when you will fall ill, suffer from a disability, or need daily care for a long period of time, you should purchase this insurance, regardless of age. It is not possible to predict the type of care you will need, which is why you should always choose the policy that offers the best options, in case you need those benefits in the future. When purchasing this type of insurance, take these factors into consideration:

• Life expectancy
• Family health history
• Gender
• Family situation – Will you need nursing home care, or in-home care

Buying this insurance now could save you a lot of money in the long term. You should always have the insurance in place to cover those costs associated with the care you may need in the future.