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What Do We Mean By Long-Term Care Insurance?
Long-term care insurance is a specific insurance product that is only sold in Canada, the UK, and the US and helps individuals to pay for care costs that exceed a pre-set period of time. It is oftentimes abbreviated as LTC or LTCi. In any case, this type of insurance covers what health insurance, Medicaid, and Medicare typically does not including your assets in certain situations. The key advantage that this type of insurance provides is that it alleviates the burden of your children having to take care of you the rest of your life.
In most cases, it is provided to those individuals who can no longer perform those activities and tasks that are required in everyday life. This includes:
• adult day care
• Alzheimer's facilities
• assisted living
• hospice care
• nursing home facilities
• respect care (interim, short-term care occurring prior to being admitted to long-term care)
It can also pay for in-home care should that be needed and in most instances, from the first day that it is needed. It also pays for live-in or visiting:
• caregivers
• companions
• housekeepers
• private duty nurses
• therapists
Additionally, coverage up to the maximum policy benefit is provided 24/7. So as you can see, the coverage provided is very comprehensive.
Why Is Long-Term Care Insurance So Important?
It is extremely important because of the above benefits that it provides the policy holder. However, it provides additional benefits as well, including:
It helps cover out-of-pocket expenses so the individual does not have to feel embarrassed or uncomfortable about their children having to care for them. Savings accounts can be quickly depleted if an individual or his / her family has to pay for those long-term care expenses.
In some cases, the premiums paid for the policy can be deducted on the person's income taxes. The age of the individual determines the size of their income tax deduction. Plus, the benefits paid by the policy can be omitted from the person's gross income.
The amount of premium discounts for businesses is usually determined by the particular type of business. Those premiums are usually 100% deductible for the corporation paying them provided they have not included them in the taxable income of the employee.
Just remember that without long-term care insurance, you (or one of your children or other family members) will have to incur all your expenses (up to $ 70,000 annually for nursing home care). If you do not have Long-Term Care Insurance then what assets will you liquid when you need care? What if you need that care for 2-4 years? We are living longer and with better quality of life, due to great medical advancement, which means you may just want help at home. Home care is growing and preferred in most cases. Most of us will want to live in our own home as long as possible. At some point it may make life easier and lengthen the number of years we can live at home by simply having long-term care benefits.
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Source by B. Loughead
