Long Term Care Insurance

This type of private insurance policy can help pay for many types of long-term care, including both skilled and non-skilled care.

Long-term care insurance coverage can vary widely. Some policies may cover only nursing home care. Others may include coverage for a whole range of services like care in an adult day care center, assisted living, medical equipment, and formal and informal home care.

Long-term care insurance premiums vary, depending on your age and health status when you buy the long-term care insurance policy and how much coverage you want. Additionally, you must be in generally good health to pass underwriting when purchasing a policy. For this reason, it may be better to buy long-term care insurance at a younger age when premiums are lower. If this is done, a periodic review is advised to make sure your policy covers your current and future long-term care needs. But you can buy long-term care insurance at any age. Talk about this with a family member, insurance agent, or financial advisor to learn what is best for you.

The cost of care, especially in nursing homes and assisted living facilities, varies from state to state. Make sure that the long-term care insurance policy you buy will cover the costs of care where you plan to use it.

Most long-term care insurance policies offer certain tax benefits. These policies are called Tax-Qualified, or TQ, policies. Depending on your age, you can include some or all of the premium for a TQ policy as a medical deduction on your Federal income tax form if you itemize your deductions. Also, when you receive payments from a Tax-Qualified policy, you generally don’t have to pay Federal tax on them.

Long-Term Care Insurance Opportunities: Long-Term Care Insurance Requirements/Limits:
Long-term care insurance gives you financial protection against the cost of long-term care services. If you don’t buy a long-term care insurance policy from a reliable insurance company, you might not get the coverage you need in the future.
It helps give you more control and choices over your long-term care coverage. You are able to choose the type of services and customize your care based upon your financial and social needs. Make sure you buy the right long-term care insurance policy that is right for you. Some policies offer more coverage than other polices. You may have to pay additional long-term care costs. Read the policy carefully to see what is and what isn’t covered.
You won’t have to use your savings or life insurance to pay for your health care needs. This will allow you to leave money or other items to your heirs (family and friends). Some people might not be able to get a long-term care insurance policy because they have a pre-existing condition. A pre-existing condition is a health problem you have before getting a new insurance policy.
The Federal Long-Term Care Insurance Program offers long-term care insurance at a group rate for Federal and U.S. Postal Service employees and annuitants, members and retired members of the Uniformed Services. Long-term care insurance policies can be expensive. You might not be able to continue to pay the monthly premium. Remember, it is better to buy a long-term care insurance policy at a younger age when premiums are lower. If this is done, a periodic review is advised to make sure your policy covers your current and future long-term care needs.
Your family or friends won’t have to worry about how you will get or pay for your long-term care. Generally, if you buy a long-term care insurance policy without a nonforfeiture benefit and don’t use it, you won’t get your money back for the policy.
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