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Long Term Care Insurance
Long-Term Care (LTC) insurance may be the least costly way to address the devastating costs
of Long-Term Care services. With nursing homes averaging $4500 to $6,000 and more per
month, there are few people who can afford to pay out of pocket very long. If the dollars
in that pocket are tax deferred dollars, the IRS will want their share as well. It
takes approximately $110,000 out of an IRA or 401K - to give $38,000 to the IRS in
taxes - to have $72,000 left to pay for one year in a nursing home. $200,000 won't last
two years! Some wealthy people could go without Long-Term Care insurance but would rather
leave the dollars to family or a charity than spend them for care (usually these same
people have homeowners insurance yet - even though the loss of a house may be less
expensive than nursing care). In most cases, the amount of money that would be spent
for one person for one year in a nursing home, if left in the bank, would generate
enough interest to pay for lifetime coverage of LTC insurance for both of a couple.
Long-Term Care insurance can cover all care settings (home care, adult day care, assisted
living facilities [CBRF's] and nursing homes) or just one or two care settings. Insurance
can pay for skilled care such as nurses to assist in your recovery at home, or chore
services such as grocery shopping and light housekeeping. It also pays for hands on care
such as bathing, toileting, dressing, and eating. You may need a little (due to your
significant income) or you may need a lot.
Costs can be reduced by assuming the full cost for the first 30, 90 or 180 days. First
day coverage is available as well. Some people chose lifetime coverage while others
feel comfortable with coverage that will only pay for a limited number of years. Everyone
should consider inflation protection as you may not need to collect benefits for 30 or
more years. If the benefits do not increase each year, the policy may not be very
useful at time of claim.
Learn More About Long Term Care Insurance
We invite you to look at some common myths associated with long term care insurance.
View long term care myths
Choosing the appropriate benefits can be a difficult task. The following questions
and answers will help you get started.
Should we purchase long term care insurance?
How much long-term care insurance do I need?
How long should insurance pay?
If the ability to finance long term care insurance is stopping you from taking advantage of
this coverage, come learn some different approached to solving this problem.
Alternative Long Term Care Financing Strategies
If you would like additional information, are unclear about a long term care issue, or
have a question you would like answered, we can help you. Please use the following link to contact
Informed Choice, LLC.
Contact Informed Choice
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