To cover the potential of incurring the high cost of long-term care, many seniors consider purchasing long-term-care insurance. Long-term care insurance (LTC) is not cheap but it can be a lifesaver. A good place to start your research on long-term care insurance is by checking out the Consumer Reports analysis of the long-term-care insurance options and criteria for determining which policy choice is right for you.

What is long-term-care insurance for seniors?

Long-term-care insurance for seniors covers services for people who are unable to care for themselves because of a prolonged illness, a degenerative condition, a disability or Alzheimer’s or similar condition. Generally long-term care insurance will cover custodial or personal care at home or skilled nursing care or rehabilitation at home or in a nursing or assisted care facility. Long-term-care insurance can cost between a few hundred dollars a year to over ,000 a year, depending upon the type of coverage you purchase and your age and health at the time you purchase the insurance.

When should you buy long-term-care insurance for seniors?

Many insurance companies recommend purchasing a long-term-care insurance policy anytime after age 50. Consumer Reports suggest you wait until age 65 unless you have a chronic disease or history of illness in your family. After age 65, the long-term care premiums are higher, and, you run the risk of not passing the medical tests. Once you are diagnosed with a serious condition that may require long-term care, you will not be able to get a long-term-care insurance policy.

Who should purchase long-term-care insurance?

Anyone who is currently healthy and wants to protect assets and does not have sufficient saving to cover the costs of long-term care should consider the purchase of a long-term care insurance policy. Once you purchase a policy the rate is typically locked in for the life of the policy and the policy is generally good as long as you pay the premiums.

What should I consider when selecting a long-term-care insurance policy?

Look for stable insurers that have been in long-term-care insurance business for a long time. Review the coverage the insurer offers carefully. Long-term care policies can have many exclusions and requirements that make it difficult to obtain the coverage when you place a claim. Some of the less expensive policies may cover nothing more than you are eligible for with Medicaid.

Some of the features you may want to consider include:

• Look for a flexible policy that covers alternate plans of care including home based care not just skilled nursing home care.

• Make sure there are no excluded conditions such as Alzheimer’s or Parkinson’s.

• Determine the maximum amount the policy will pay per day and how that amount is calculated.

• Determine the length of benefit period you can afford. The average nursing home stay is 2 1/2 years. You generally can select a benefit period of between 2 years and an unlimited number of years. The longer the benefit period the higher the premium you can expect to pay.

• Choose how soon you want the payments to begin after you become eligible. Usually the waiting period is between zero and ninety days. The longer the waiting period the lower your premiums will be. • Consider adding an inflation adjustment to your policy. Inflation adjustments are expensive but nice to have if you can afford to add one to your policy.

How do I evaluate which insurance company to choose?

Because you may not need your long-term care policy until years after you purchase the policy the most important choice you will make is choosing a company that is stable and will be around to make good on the policy when you need the insurance. Look at the company’s financial strength and their rating with the major rating services.

Question by SM S: Long term care premium – only for state tax return credit an no federal tax impact?
If I use itemized deduction, there is no impact on federal tax return related to long term care premium paid, correct? Only state income tax can give creidt. Right? Thanks

Best answer:

Answer by bostonianinmo
There’s no deduction for them on your Federal return. Some states do allow a credit or deduction for them; MO is one that does and there are likely others as well.

Give your answer to this question below!


Conference Members Urged to Participate in National Campaign to Inform Public about Extended Care

Novato, CA (PRWEB) April 13, 2011

Long Term Care insurance professionals are being urged to participate in a national campaign to inform the public that 3 in 4 Americans need more information and planning to prepare for extended care.

 

Harry Crosby, Director of New Agent Growth and Development for ACSIA Long Term Care Inc. (ACSIA), was one of the featured speakers at the annual meeting of the Association for Long Term Care Insurance. The annual meeting brings together the top Long Term Care insurance specialists from around the country to discuss industry issues.

 

“We need to embrace the national ‘3in4 Need More’ campaign to better help the public understand the need for a plan to deal with extended care,” Crosby said at the event’s opening day.

 

“As Long Term Care insurance professionals we need to embrace the best practices and have the training to better educate the American people and help them plan for something that impacts 70% of us at some point,” he explained.

 

In his role with ACSIA, Crosby prepares new and experienced agents to help their clients make decisions about Long Term Care planning. Mr. Crosby has authored two books on Long Term Care insurance sales and has trained and mentored thousands of new agents over his 18 year career in the industry.

 

According to Mr. Crosby, the goals of the “3in4 Need More” campaign include:
Spread the word among the public that “3 in 4 Need More” and that Long Term Care insurance is a good solution.
Support legislation that provides additional tax deductions or rebates to make Long Term Care insurance more affordable.
Encourage others in industry, education and the government to join the “3 in 4 Need More” campaign, making use of the logo and other visual creatives to spread the word.
Educate the public that Long Term Care insurance many not be a solution for everyone, but everyone needs a Long Term Care plan.

Additional information about the “3in4 Need More” campaign can be found at http://www.3in4needmore.com and on 3 in 4’s YouTube channel at http://www.youtube.com/3in4needmore.

 

About ACSIA®

Founded in 1958, ACSIA® is a leading national distributor of Long Term Care insurance. ACSIA® is a member of the LTC Global group of companies and headquartered in Fort Myers, Florida. For more information about ACSIA®, visit http://www.acsia.com.

 

About LTC Global

LTC Global is a leading independent marketer of insurance and financial products to seniors with emphasis on Long Term Care insurance, Medicare insurance products and HECM reverse mortgages. In addition, LTC Global provides capital to insurance agents and agencies through commission-based lending and renewal commission purchases. LTC Global has a national distribution network and is headquartered in Fort Myers, Florida. For more information about LTC Global, Inc., visit http://www.ltcglobal.com.

 

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Tags: Care, Insurance, LongTerm, Seniors

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