Long-Term Care

Long-Term Care Insurance
Even if you believe it will never happen to you, it’s important to understand your options now.

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You plan, save, and invest to create a financially secure future for you and your family. We encourage you to download and complete our Plan of Care document to help establish a plan that everyone knows and supports.

Along the way various forms of insurance are purchased to help protect your finances, however, the single most overlooked, avoided and disregarded is long-term care insurance. Are you prepared with a plan to address the need that lasts for several months or several years? Long-Term Care Insurance could end up being a key component in preserving the finances that you’re working hard to build and preserve.

What is Long-Term Care Insurance?
Basically, purchasing a long-term care policy is like buying a pile of money that’s earmarked for long-term care expenses. These expenses can provide for someone come in your home, adult day care, assisted living, and/or even a nursing home.

I don’t think we’ll ever need long-term care
Yes, this is a possibility, but what would happen if you were wrong? How would this affect your family? Would the consequences affect your family’s lifestyle?

It can be very challenging and draining for a family to navigate the caregiving system as they seek the best care for you. With long-term care insurance, you have “care coordination” which is an independent 3^rd party that assists in this and other helpful areas.

Many times without long-term care insurance, the family becomes the caregiver, which can be very difficult – emotionally, physically and financially.

Even if you do not rely on family for caregiving, the cost can be very expensive and leave less for your spouse’s living expenses.

Long-Term Care Insurance has evolved

Consider that today’s long-term care policies:

– pay for care at home as well as facilities;

-many plans waive the waiting period for home care which means you can begin receiving benefits immediately;

-many plans offer “Share Care” which means that the funds for a couple are pooled;

-Hybrid life insurance plans have long-term care riders where the premium is fixed and there’s a life insurance benefit;

-Significant discounts are available for couples, even if only one person is applying.

When should I purchase?

Most individuals purchase long-term care insurance between the ages of 54-64. Unfortunately, for some people, 54 may be too late due to a change in their medical history. Also, while traditional long-term care insurance can have rate increases, there are hybrid plans (life insurance with ltc riders) that provide a fixed premium for life.

Something is better than nothing

Just as social security was never designed for complete income replacement, long-term care insurance can be purchased with the idea of supplementing the costs. And, the lower the benefit (or pile of money you purchase), the cheaper the premium.

Is there a tax benefit?
As an individual, the benefits you receive are tax-free.

The government does incent many of us to purchase long-term care insurance. Premium deductions vary depending on whether you are:

An individual taxpayer who itemizes;

An employer paying for the employees’ coverage;

A Sole Proprietor, S. Corporation, Partnership or LLC.

What is your Long-Term Care Strategy?

Just by reading this information you’ve already started the process. Next consideration:

• What is the level of independence you would like to maintain?
• What is the role you would like to your family to play in your care?
• Where and how would you like to receive care if you need it?
• How do you want to fund the costs?

Additionally, consider that by having a long-term care policy, your family can be supervising your care as opposed to providing it.

To find out about the options and receive personalized quotes for long-term care insurance, please contact me by email at carly@cjbins.com or call me at 510.342.2670.