Long Term Care Insurance: Now More Important Than Ever!
Long Term Care Insurance (LTC or LTCI) is designed to help pay for the care of people who are not necessarily sick in the traditional sense, but who are unable to perform activities of daily living. Activities of daily living (ADL) include bathing, eating, dressing, toileting, continence, transferring (to or from a chair or bed) and walking. It is estimated that over 70 percent of people over the age of 65 will require Long Term Care during their lifetime. Long Term Care can be received via Home Care, Assisted Living, Nursing Home Facilities, etc.
Historically, Long Term Care Insurance has been premium based, like car insurance; if you don’t use it, you lose it. In other words, if you pay premium dollars for years and years, but then never use your Long Term Care Insurance policy, all the money you spent is gone. There is now a new option, often referred to as Asset-based Long Term Care Insurance.
On January 1, 2010, Long Term Care provisions from the Pension Protection Act went into effect. These provisions have revolutionized Long Term Care Insurance by allowing combination policies and policy premiums to be paid in tax-advantaged ways. As a result, if you purchase an Asset-Based Long Term Care Insurance policy, whether you use Long Term Care benefits or not, you or your loved ones are guaranteed to benefit from the premiums paid into the policy.
There are multiple plan options that will fit the Long Term Care Insurance needs of most people, regardless of health condition or budget. If you currently own a traditional Long Term Care Insurance policy or if you are concerned about how you will pay for Long Term Care expenses when the time comes, please contact one of our Long Term Care Insurance experts for a free evaluation.