Long Term Care Insurance

"Human beings, by changing the inner attitudes of their minds, can change the outer aspects of their lives."--William James

UNDERSTANDING LONG-TERM CARE POLICIES

What services are covered? (Most comprehensive policies will cover the following):

*Home Healthcare
*Assisted Living Facilities
*Adult Day Care
*Nursing Home Care
*Other Community Facilities

When are you eligible for benefits?

*Typically when unable to perform 2 of 6 Activities of Daily Living
*Or, Cognitive Impairment, including Alzheimer's disease & dementia

What am I buying?

*Daily or Monthly Benefit (ex., $180/day or $5,400/month)

*Waiting Period (deductible) - how soon benefits begin (ex., 0 - 90 days)

*Maximum Benefit Period - how long the policy will pay (ex., 4 years)
  Maximum policy benefit is determined by daily benefit x benefit period.
  (ex., $130/day x 1460 days = $189,800 maximum policy benefit)

*Inflation Protection - automatically increases daily benefit each year
  (ex., 5% compound each year to help keep pace with inflation

*Home Health Care is an optional benefit, but important to consider as the majority of care usually starts at home.

Premiums are usually waived after 90 days on claim. NO prior hospitalization is required.  Each policy is slightly different, so it is important to understand policy language and definitions.

*Who should consider buying Long-Term Care Insurance?

*If you have significant assets and income
*If you want to shelter your assets from Medicaid spend-down
*If you want to assure quality of care
*If you want to stay independent of the support of others
*If you want to have peace of mind for yourself and your children

*Other Considerations:

*Tax-Qualified vs. Non Tax-Qualified Policies
*Indiana Partnership LTC vs. Non Indiana Partnership LTC
*Payment Options: Annual, Paid up at 65 or 10-Pay option
*C-Corporations and Professional Corporation purchase policy for employees to take tax deduction on premiums.

*Alternatives to Traditional Long Term Care Policies

*Annuity - (single premium with Long-term care rider)

*Whole life policy with Long-term care rider

*Universal Life insurance with Long-term care rider or accelerated benefit

Unsure what's right for you??  Let's talk....