David HaynesDavid Haynes, CLTC, is an independent insurance broker specializing in long-term care insurance planning. Contact David at 336-314-1698 or david@haynesltc.com.
Three words families want to hear are “I love you.” Three words families don’t want to hear are “long-term care.” But these are words that many families learn the hard way when a loved one’s extended care event begins.
Long term care is assistance provided to loved ones because of their inability to perform activities of daily living due to an illness, injury, or progressive, sudden, cognitive impairment such as dementia or Alzheimer’s. We often think that long-term care is for those in nursing homes/skilled facilities reserved for the elderly. That is only part of what most people see.
Unfortunately, most care claims begin in the home and go unnoticed statistically, but it can happen to anyone, at any age, and at any time. Care can be provided in the home or in facility settings by hired, trained, paid caregivers, which comes at a cost that is not covered by Medicare and health Insurance policies.
The payment of these services comes from cash, investment and savings accounts, or—if you’ve planned—a LTCi (long-term care insurance) policy. Long-term care should be a family matter, but unfortunately, an extended care event usually doesn’t bring family members together; it pulls them apart because of improper planning.
An unexpected event that requires attention and dollars has a huge impact on emotions–physically, mentally, and financially. Remember, most buyers of long-term care coverage understand that the real reason is for those they love. If you need care, it will be provided in some way, but to what extent will it cost you and your loved ones?
One of the greatest risks of depleting a retirement income is the cost of long-term care. Long-term care insurance is a policy that provides dollars to families to help manage the care because of the choices that the dollars will provide. One typically does not plan for a long-term care event when they are younger, which is often why a policy is not purchased, but that’s exactly when it is most appropriate to obtain coverage—when you are young and healthy.
Although one may be able to obtain a policy up to age 79, most buyers consider purchasing at age 50. Don’t let the idea of denial prevent you from protecting your greatest asset—YOU.
The following statistic is alarming: Three out of four people over the age of 65 will have a long-term care event lasting at least 12 months before they die. This can come at an extremely high cost. Are you prepared?
With adult children in the workforce longer and many working miles from their parents, many having children later, parents living longer, and the huge increase in baby boomers entering the senior market, the demand for care is increasing exponentially. Where will the dollars come from to pay for such care when needed? The answer—long-term care insurance.
Long-term care insurance is a tax-qualified product under IRC 7702(b); premiums may be partially or fully tax deductible. Favorable tax rules may apply to business owners and the self-employed. Seek advice from legal counsel or tax advisors.
If you have read to this point and are wondering if long-term care insurance is something you should consider, then it probably is. The internet is loaded with material, but a simple discussion with a qualified advisor may be your best option to find a solution. It’s better to plan now than react later.