Do I need Long-Term Care Insurance?
With the cost of nursing home care rising like never before, planning for older age is crucial. Buying this type of Insurance allows you to receive high quality care without worrying about the financial burden on yourself or your loved ones. If we are looking at numbers, there is a 70% chance that a person over the age of 65 will need some form of nursing care. Looking at these facts shows that buying this type of insurance is a priority.
When should I buy Long-Term Care Insurance?
The best time to purchase Long-Term Care Insurance is before you turn 60. Buying Long-Term Care insurance before has the downside of paying for a much longer period of time before any benefits kick in. Claims for this type of insurance usually arise when someone is in their 70’s and later.
What does Long-Term Care Insurance cover?
Depending on the plan you purchase, Long-Term Care Insurance could cover home care, assisted living, adult daycare, hospice care, nursing homes, respite care, and more. Although some policies will pay for benefits for a few years, others will pay for benefits for as long as you live.
What is the elimination period on a Long-Term Care Policy and what does it mean?
You can think of an elimination period in a Long-Term Care Policy like a deductible in a Health Insurance Policy. Usually the elimination period is around 90 days and before that, you are responsible for the payment of care.
Is there anything I should be aware of before buying Long-Term Care Insurance?
There are definitely some factors to consider before buying Long-Term Care Insurance. Finding a plan with good options and an affordable price takes time but is worth it. Listed below are a few things to consider:
Look into the daily benefits and think about the care you would like to receive. Nursing home care differs and it is important to look at the daily cost of being provided care.
Think about your benefit period which means how long your individual policy will pay for coverage. The benefit period ranges from two years to as long as lifetime coverage. However, it is important to understand that the longer the benefit period, the more expensive the premium.
Think about the elimination period which is how long you will need to wait until coverage begins. As mentioned before, if the elimination period has not ended, you will be responsible for the cost of care.
Is Long-Term Care Insurance Tax Deductible?
Long-Term Care Insurance is not tax deductible for an individual when paying premiums. However, when receiving benefits, they are not taxable.