Long Term Care Insurance
"We have enjoyed doing business with Bernard Zweig over the past 20 years and admire his dedication to clients' needs and his trustworthiness."
Seymour and Leah Englard¹
Long Term Care Insurance
Long-Term Care Insurance is still a relatively new type of insurance product. Many people do not understand what long-term care insurance policies cover, how and when the policies pay benefits, and who should obtain coverage.
What is Long-Term Care Insurance?
You probably know someone who has needed long-term care insurance. Maybe you have witnessed a family member, friend or colleague struggle with the emotional and financial issues that can come with a long-term care insurance experience. The truth is, no matter when the need arises, because of age, disability, or because of an unexpected illness or accident, long-term care can affect any age group, any social strata, and any geographic location. But what is it and how can you plan for it?
Long-term care insurance is help you may need due to a lengthy illness, an unexpected injury or accident, or a severe cognitive disorder such as Alzheimer’s disease. It’s assistance with the everyday tasks, or the activities of daily living (bathing, eating, dressing, toileting, transferring, and continence). Long-term care insurance may be provided in a variety of locations, from nursing homes and assisted living facilities to adult day care centers and even your own home.
Who needs Long-Term Care Insurance?
Most of us strive to live active, healthy lives well into our later years, and indeed as a society, Americans are living longer than ever before. This extended longevity is one of the things that drives the growing need for long-term care insurance – the longer we live, the better the odds that we may need long-term care insurance services. It is predicted that in the year 2020, some 12 million older Americans are expected to need long-term care insuance*.
While the majority of long-term care insurance services is provided for seniors, a surprising amount of long-term care insurance services are provided to younger people. In fact, the U.S. Government Accountability Office estimates that 40% of the 13 million people receiving long-term care insurance services are between ages 18 and 64**.
Who pays for Long-Term Care Insurance?
Long-term care insurance can be expensive, financially and emotionally. An unexpected need for long-term care insurance can have a significant impact on a family’s assets and lifestyle. Close to one-fourth of all nursing home costs are paid out-of pocket by individuals and their families.***
Many people mistakenly believe that their health insurance will cover the cost of long-term care. Others believe that Medicare or Medicaid will cover long-term care expenses. While Medicare does provide health coverage for seniors, it is limited in the coverage it provides for long-term care. Medicaid will pay for the cost of long-term care, but you must qualify by meeting strict income and asset eligibility requirements.
Long-term care insurance could be a solution.
Long-term care insurance can be a very smart way to address the challenges from a long-term care need. Long-term care insurance can help pay for nursing home care, as well as, a variety of home and community based care services. Long-term care insurance may not be for everybody, so if you are considering a policy, read it carefully and be sure to work with an insurance agent who understands long-term care issues.
With long life comes long-term planning. Make a plan for you and your family today. For more information on long-term care insurance, please contact agent Bernie Zweig, New York Life Insurance Company at (212) 261-9514.
* Health Insurance Association of America. A Guide to Long-Term Care Insurance. 2007. Page 2
***Health Insurance Association of America. A Guide to Long-Term Care Insurance. 2007. Page 4
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In New York State premiums may qualify for favorable tax treatment with certain limited exceptions. There is a tax credit of 20% on premiums paid for Long-Term Care Insurance.
All above information courtesy of NewYorkLife.com
¹The experience of the people described in this material may not be representative of the experiences of all of my clients. Furthermore, the experiences obtained by these people are not indicative of the future experiences that may be obtained by any of my clients.
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