 |
|
|
 |
|
|
|
|
|
|
LONG TERM CARE INSURANCE
Here is a list of common questions and some not so
common questions about Long Term Care and Long Term
Care Insurance by a health care advisor.
We hope you find this information useful.
Please contact us for more information or to arrange an
appointment with Ed Santos to discuss your long term care
needs.
Are you prepared?
Long Term Health Care is not an easy subject to talk about.
Nobody wants to think that they - or someone they love - might
need it one day.
But it is estimated that a person 65 years or older has a 43%
chance of eventually needing care in a nursing home. The
average cost of a year in a nursing home is around $41,000.
What's more, it is estimated that seven in ten people over age
65 will use home care.
Not too long ago, elderly relatives were cared for by family
members. But today, many families are scattered throughout
the country, making it difficult for families to look after aging
parents.
Long term care benefits from Medicare are very limited. And to
qualify for Medicaid, you must first spend down to the poverty
level.
So unless you can afford to use your life savings to pay for long
term care, what is your alternative?
Are all Long Term Care Plans the same?
There are two basic types of Comprehensive Long Term Care
policies, tax qualified and non tax qualified. Within these two
categories there are many differences that each company that
sells LTC may have.
What each prospective purchaser should do is undergo a
needs analysis with a qualified specialist that only sells Long
Term Care. The specialist will be able to determine what is best
for you based upon your lifestyle and financial position.
How can Long Term Care Insurance help me?
By paying for Home Care, Day Care, Assisted Living, Nursing
Homes and more.
How do I determine which plan is best for me?
The answer to that is easy; a Comprehensive Plan is usually
best for everyone, as it covers all possibilities.
Now that I have made a general statement of fact I must look
back and inform you that in some cases the other plans might
be more appropriate for you due to your own circumstances.
What are the circumstances? They are affordability and need.
What is good for your neighbor is not necessarily good for you
and vice-versa. What you need to do is to have a professional
Long Term Care Specialist, one who deals only in Long Term
Care products, analyze your particular situation, so that a
personalized plan can be developed for you. This can not be
done over the telephone or through the mail.A professional
Long Term Care Specialist must meet with you and help you
determine what your needs are.
I am in my fifties and think that I should wait until I am
older to purchase Long Term Care insurance. Am I right?
In a word, NO, you are wrong. Let’s look at a policy from a
leading insurance company to see how this works.
The policy we will look at is a comprehensive plan with a Daily
benefit of $120.00 per day, 5% compound inflation protection,
with benefits lasting four years.
If you were to purchase this plan, providing for inflation, with
your spouse at age 50, the plan would cost $835.00 per year,
purchase the same plan at age 55, $1130.00 per year, age 60,
$1945.00 per year age 65 $ 3370.00 per year.
When you extend these figure up to age 85, you will find that
the younger you are when you buy, the cheaper Long Term
Care insurance is, in the long run.
Remember that the younger you are, the healthier you are and
medically qualifying for Long Term Care is easier. (Inflation
protection calculated at 5% compounded per year.)
Santos Associates, FEDERALLY AUTHORIZED TAX
PRACTITIONERS, can help you with your accounting, tax
and financial planning needs. Call today for an appointment &
consultation. We are not attorneys, we can refer competent council
upon request.
