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Long Term Care Insurance

About half of 65-year-olds will eventually develop a disability and require long-term care.

Regular health insurance doesn’t cover long-term care. Medicare and Medicaid? No. Medicare only covers short nursing home or rehab visits, not custodial care and Medicaid is structured to assist only low incomes, and only after exhausting your savings.

Schedule a free virtual consultation to review your insurance coverage and protect what’s important to you.

 

You’re healthy and active. Your days are packed with work, kids (grandkids), weekend puttering, and the occasional travel and vacation. It’s hard to imagine now, but over half of us will need long-term care later in life.

How will you pay for this costly care?

What exactly does long-term insurance cover and why is it important?

Long-term care insurance is coverage for a full range of services that are often required for those suffering chronic medical conditions, permanent disability, and memory disorders such as Alzheimer’s or dementia. These services might include assistance with daily tasks and care, like getting in and out of bed, bathing, dressing, or continual supervision. Most policies will reimburse for these services and care often provided in your home, a nursing home, an assisted living facility, or adult daycare.

Considering the eventual need for long-term care is more than just a consideration of providing adequate care, it’s an investment in protecting your family’s quality of life.

Let’s consider a common scenario.

Jim and Carol are an active and energetic couple in their early 50s. They have been reasonably good with their money, saving a little over $300,000 for retirement and continue to save for those Golden Years.

At 66 years old, Jim is diagnosed with Alzheimer’s. Carol was able to manage Jim’s disability at first, caring for and assisting Jim with daily routines. However, over time Carol needed additional help and used some of their savings to hire a home healthcare specialist to help with Jim for a few hours a day. Then eventually, as Jim’s condition worsened and behaviors became less manageable, he needs to move into a nursing home for full-time supervised care.

Five years later, Jim passed away. Carol, still a healthy 71-year-old, has to return to work full-time because their $300,000 nest egg is exhausted.

This is an all too common scenario and one of the best reasons to consider long-term care insurance coverage.

Why buy long-term care insurance?

Let’s dig a little deeper into the why of adding long-term care insurance to your long-term financial plan.

Starting with the facts:

Considering these facts and highly probable eventuality, there are a few key reasons people buy long-term care insurance.

  1. To protect savings. Long-term care can quickly exhaust the healthiest of retirement savings. The lowest end of care, adult day health care has an annual median cost of $18,720, and nursing home care can range from $89,297 (semi-private room) to $100,375 (private room), according to Genworth’s 2018 Cost of Care Survey.
  2. To provide you with more choices in care. Simply put, the more money you spend the better the quality of care for yourself or your loved one.

Cost of Long-Term Care Insurance

Your personal rate for long-term care insurance will be determined by a few common considerations, including:

Tax advantages to buying long-term insurance?

If you itemize deductions, especially as you get older, there can be some tax advantages to long-term care insurance. Federal and some state tax codes currently allow you to count part or all of your long-term care insurance premiums as medical expenses.

Next Steps?

Schedule a virtual appointment for your full policy review and risk assessment. Ensure your future and protect the ones you love.