We are living longer, but our longevity isn’t always accompanied by good health. Long Term Care Insurance is one of the most over-looked benefits in financial portfolios today. Funding the care of an ailing loved one can financially devastate a family if provisions haven’t been made. Fortunately there are a number of affordable, quality products available in the market today.
Long-term care insurance generally covers in-home care, assisted living, adult daycare, respite care, hospice care, nursing home, and Alzheimer’s facilities. If in-home care coverage is purchased, long-term care insurance can begin paying, often from the first day it is needed. It will pay for a visiting or live-in caregiver, companion, housekeeper, therapist, or private duty nurse up to seven days a week, 24 hours a day (up to the policy benefit maximum).
Other benefits of long-term care insurance:
Many individuals may feel uncomfortable relying on their children or family members for support, and find that long-term care insurance can help cover out-of-pocket expenses. Without long-term care insurance, the cost of providing these services may quickly deplete the savings of the individual and/or their family.
Premiums paid on a long-term care insurance product may be eligible for an income tax deduction. The amount of the deduction depends on the age of the covered person. Benefits paid from a long-term care contract are generally excluded from income.
Business deductions of premiums are determined by the type of business. Generally premiums paid by a corporation for an employee are 100% deductible if not included in the employee’s taxable income.
In the United States, Medicaid provides some of the benefits of long-term care insurance. Since it’s a welfare program, Medicaid does provide medically necessary services for people with limited resources who “need nursing home care but can stay at home with special community care services.” However, Medicaid generally does not cover long-term care provided in a home setting or for assisted living. People who need long-term care often prefer care in the home or in a private room in an assisted living facility.
The long term care market place is changing on a daily basis. Call us today for advice on the best options available.