|
|
IMPORTANT
ANSWERS TO
YOUR
QUESTIONS
ABOUT
LONG-TERM
CARE
INSURANCE
Visit
»
THE NYS
Partnership
for
Long-Term
Care
WEB SITE
|
|
|
|
|
Why should you consider purchasing Long-Term Care Insurance? |
|
The reason for purchasing
Long-Term Care Insurance is to protect your assets and income for your spouse
and or your children. Many people are in denial about the possibility of
ever needing long-term care until they have to go through it with their own
parents. Or, they think their spouse or children will care for them if
they ever need assistance with the activities of daily living. Sadly, this
does not usually work for very long. Soon, the care givers life usually
becomes overly burdened and professional care is needed in spite of best
intentions.
■ |
|
|
What is the financial risk? |
|
The odds of incurring long-term care expenses after age 65 are about 1 in 2. For every person in a
nursing home, four people are receiving care at home. The average stay in
a nursing home is 2.5 years, and 21% of people who enter a nursing home will be there
for 5 years or longer. The average cost of a nursing home in the Albany,
New York area is now over $270 per day or in excess of $100,000 per year.
The cost of Nursing Home Care increases 5% or more annually. For care at
home the cost is usually much more, at least $150,000 annually for 24-hour care. Your actual
risk is difficult to determine, but a substantial financial risk exists for
everyone. Fifteen years from now, if you have a five-year stay in a
nursing home, it will cost in excess of $1,000,000.
■ |
|
What are
long-term care expenses and what constitutes
a claim? |
|
Long-term care is needed when
someone requires assistance with activities of daily living such as bathing,
dressing, eating, toileting, continence, or transferring (from bed to chair, for
example). With most insurance companies you will be claim-qualified if you
need on-going substantial, assistance with at least two of these six activities
or if you suffer from cognitive impairment (see your policy for details).
■ |
|
|
When should you purchase Long-Term Care Insurance? |
|
The cost of long-term care
insurance increases disproportionately every year on your birthday. So,
you should purchase long-term care insurance as soon as you can. There are
other potential problems if you wait too long. You do not have to be old
to need long-term care. You could have a stroke or accident or other
illness at any age that could cause a need for long-term care. Your health
could change and disqualify you from getting long-term care insurance. If
you have assets and income to protect, you should consider purchasing this
financial protection.
■ |
|
How do
Long-Term Care Insurance
policies work? |
|
Long-Term Care policies offer
many benefit options and can be designed to meet your objectives. Options
include the amount of daily benefit, duration of benefit, self-insurance period and
inflation protection options. Policies can provide protection for home
health care, adult day care, and nursing home care. You can have a shared
benefit plan with your spouse or individual policies. You may want a New
York Partnership Plan which only requires you to purchase a three-year benefit
policy after which NY State will pay for your cost of nursing home care.
However, you will have contribute income to the cost of your care. The
best way to select a long-term care insurance plan is to find an independent
broker with extensive experience with long-term care insurance and let him/her help you decide on the plan that best meets your objectives.
■ |
|
Business Owners
If you are the owner of a C corporation, the following is great information. Since
long-term care insurance is health insurance, it is tax deductible to your
corporation. Long-term care insurance can be offered to select employees and
their spouses based on title, years of service, management level, etc. So, you can create a
long-term insurance plan in you corporate meeting records that could include
owners, spouses and selected key individuals by plan criteria definitions.
Then, you can pay the premiums with tax-deductible corporate dollars with no
personal tax on the policy benefit. Also, long-term care insurance
policies can be paid up at age 65 or in ten years, so you can leave the business
and retire with a paid up, tax-free long-term care policy for you and your
spouse. I would be happy to help you implement a corporate long-term care
insurance plan. Group Long-Term Care plans are also available and are becoming
very popular. Please call or email me for more information about how Group
Long-Term Care Insurance can be of benefit to your business.
■
|
|
|
|
| |
I never charge a fee.
For more information, to get
a quote, or to set an appointment, call
518-286-1212 or
send an email to
info@DavidKingSolutions.com. |
|
 |
|
|
|
|
|
|
