Benefits of Long Term Care insurance
Long Term Care insurance allows an aging population to maintain the highest quality and flexibility of care without tying up a tremendous portion of retirement savings. In addition, it provides protection of the spouse and children that might otherwise be forced to provide resources in the form of time and money so the individual gets the care they deserve. For many, the peace of mind of having long term care insurance is the first benefit they receive.
Choosing a policy
A myriad of choices and options can make choosing a policy seem to be a difficult decision. Working with an insurance agent or financial planner that specializes in Long Term Care insurance is highly recommended. At the most basic level, there are only 5 big choices to be made:
- Daily Benefit: how many $ per day
- Home Health Care: Do you want the flexibility to stay at home?
- Deductible / Waiting Period: How many days do you want to wait before Long Term Care insurance begins to cover the cost of care?
- Maximum Benefit: What is the total $ value you would like to be insured for?
- Inflation: Do you want full health care inflation cost coverage?
When should you buy Long Term Care insurance?
Couples and individuals should consider long term care insurance as they approach middle age. At this point most people have a larger asset base they need to protect and the impact of paying for care of a long time period could be catastrophic. While still in the 40-50's, most individuals are also in better health and can therefore reduce their premiums. Just as pre-existing conditions can disqualify an individual for life or health insurance, Long Term Care is less expensive when purchased long before and individual thinks they need it.
In many states Long Term Care insurance premiums are tax deductible. In addition, members of partnerships can fully write off the cost of Long Term Care insurance as a partnership expense. Consult your Long Term Care professional for more details