Archive for the ‘long-term care ins’ Category
Why You Should By Long-Term Care Insurance
BUYING INSURANCE
Why Should You Buy Long-Term Care Insurance?
1. It will help you keep your independence and dignity. Here’s how. . . some of you will spend all your assets on care while others plan to give their money away or put it in trust. With no assets you will now qualify for a welfare program called Medicaid. Medicaid typically pays for a semiprivate room in a nursing home, and; not all nursing homes take Medicaid patients. In many states it’s not easy to get Medicaid to cover home care or pay for assisted living. Many people want to stay at home, but with Medicaid may not be able to. And assisted living is rapidly becoming a preferred alternative to nursing home care for certain disabilities but Medicaid may insist on a nursing home instead.
A nursing home is not the most desirable place to finish out one’s life. For many, a terminal stay in a nursing facility robs them of a purpose in life and strips away their dignity. As an example, have you ever thought of the indignity of being bathed, toiletted or diapered in a nursing home environment? No wonder many people express the desire to die before ever having to go into a nursing home.
Visit www.aaltci.org and www.aaltci.org/long-term-care-insurance to learn more.
Long-Term Care Insurance Options
Long-Term Care Insurance: You Have Options
By: Janet Arrowood
The latest offerings provide more coverage and the ability to pick and choose what types of coverage you’ll need.
There was a time in the not-too-distant past when choosing a long-term care insurance plan was simple–because there was only one option: a nursing-home-only plan modeled after Medicare LTC coverage. Today, you can choose your coverage and its terms from a plethora of options. But, with all of these choices, careful evaluation of LTC policies is more critical than ever.
Study Reveals What Americans Pay for Long-term Care Insurance
What individuals pay for long-term care insurance can range significantly from about $700 a year to as over $13,000 per year according to a study from the American Association for Long-Term Care Insurance.
Not Buying Long-Term Care Insurance Can Be a Costly Mistake
No long-term-care insurance? Uh-oh
You probably don’t need another bill to pay. But skipping this protection could destroy your finances, even long before you’re old, or vaporize your kids’ inheritances.
Continue reading this article HERE.
Long Term Care Insurance – Answers to Common Questions
This article can be found at http://longtermcareinsurance.org/longtermcareinsurance.html
Will You need Long Term Care?
It’s hard to believe, but the estimated risk for needing Long Term Care continues to climb with each passing year. Now, the Federal government estimates that each individual has a 70% chance of needing Long Term Care in their lifetime. Recent studies reveal that if you are 60 years old you have more than a 60% chance of needing long term care. If you are over 65 years old, your chances of needing care goes up to 70%.
Who Is More At Risk for Needing Long Term Care?
Your age, marital status, gender, lifestyle and, to some extent, your family health history all play a part in the possibility of needing long term care.
According to insurance actuarials, you are more at risk if you:
* are older
* are a woman
* are single
* have a poor diet
* don’t exercise regularly
* smoke
* have a family history of Alzheimer’s, stroke, arthritis, or other degenerative diseases.
* Also, physical activities that can cause severe accidents should be included as a definite risk.
The Long Term Care Cycle
91% of Americans surveyed said they would prefer receiving Long Term Care at home. Indeed, of those needing care only 5% are in Skilled Nursing Facilites.
12% are in Assisted Living Facilities and more than
80% are receiving Home Care
Therefore, it isn’t a surprise that most Long Term Care starts at home with the help of family or friends until the caregiving burden becomes a too much of a hardship. The next step might be to hire a paid caregiver to help with care duties in the home. Yet many people can’t afford such a luxury, even if they hire unskilled, unlicensed, unsupervised “grey market” caregivers. As care needs increase the next care setting of preference is Assisted Living Facilities, as they are more like hotels than the hospital-type setting of a Skilled Nursing Facility. Most people do everything in their power to stay out of nursing homes, which is one reason why the average nursing home stay is only 2.5 years.
While most Americans suspect that they might need long term care “sometime” in the future, many underestimate care costs and falsely assume that Medicare or their health insurance will pay for extended care. They will not. Medicare will only pay for a short time and only under specific, limited circumstances. The only governement agencies that pay for Long Term Care are Medicaid and the Veteran’s Administration. Both are notorious for their lack of care quality and poor quality of life for their residents.
Boomers’ Mindset
Boomers have been raised to expect a decent quality of life and the freedom to make their own choices. They cherish independence, pleasure and, as they have matured, the joys of family and friends.
As a generation, Boomers were not raised to expect or shoulder sacrifice, although they can and do rise to the occasion. For most, the mere thought of a loved one enduring the extraordinary burden and sacrifice of day-to-day caregiving is enough to motivate Boomers to protect themselves and their families.
The value of Long Term Care insurance is that it:
1) supports independence by providing the ability to pay for Home Care and Assisted Living costs. It give people choices.
2) protects loved ones from the burdens of caregiving.
Long Term Care insurance should be called “nursing home and family caregiving prevention insurance”, and for these benefits alone it is worth its price.
Either having LTC insurance or paying for care costs out-of-pocket allows you to choose where to receive care, even when caregiving needs increase. However, Long Term Care insurance is less expensive in the long-run.
When Should I Buy Long Term Care Insurance?
The sooner the better! LTC insurance premiums go up in price as you get older, although once you buy a policy your premiums do not rise due to aging or health. For years, financial planners were telling their clients to wait until age 65, but this is no longer considered sound advice. The Federal and State Partnership Programs encourage people to buy as early as age 40, mostly to increase the financial security of the programs, but also to ensure that people do not become a burden on Welfare/Medicaid if they get sick or injured at an early age and need long term care.
If you can afford the premium for years to come, buy now to protect yourself and your family.
Should Long-Term-Care Insurance Be Part of Health Reform?
Interesting article written by Kate Pickert at www.Time.com
Tucked deep inside the Senate health reform bill — beginning on page 1,926 — is a plan for a new federal insurance program. Average premiums could be as high as $180 per month and could be automatically deducted from the paychecks of some American workers. The nonpartisan Congressional Budget Office (CBO) predicts this new program would “add to budget deficits … by amounts on the order of tens of billions of dollars.” This is not, however, the so-called public option that is the focus of much heated debate on Capitol Hill. It’s an entirely different Democratic plan for a new kind of government-run health insurance — one that would help provide long-term care for the elderly and infirm.
Read more: http://www.time.com/time/politics/article/0,8599,1946431,00.html#ixzz0ZaotG4az
Are Long-Term Care Insurance Premiums Tax Deductible, and if so, How Much?
Individual Purchase
AS YOU AGE … YOUR TAX DEDUCTIBLE LIMIT INCREASES
Tax-qualified LTCi premiums are considered a medical expense. For an individual who itemizes tax deductions, medical expenses are deductible to the extent that they exceed 7.5% of the individual’s Adjusted Gross Income (AGI). The amount of the LTCi premium treated as a medical expense is limited to the eligible LTCi premiums, as defined by Internal Revenue Code 213(d), based on the age of the insured individual. That portion of the LTCi premium that exceeds the eligible LTCi premium is not included as a medical expense.
Individual taxpayers can treat premiums paid for tax-qualified long-term care insurance for themselves, their spouse or any tax dependents (such as parents) as a personal medical expense.
The yearly maximum deductible amount for each individual depends on the insured’s attained age at the close of the taxable year (see Table 1 for current limits). These deductible maximums are indexed and increase each year for inflation.
2010 Federal Tax Deductible Limits (Table 1)
|
Taxpayer’s Age At End of Tax Year – Deductible Limit |
||
| 40 or less | $ 330 | |
| More than 40 but not more than 50 | $ 620 | |
| More than 50 but not more than 60 | $1,230 | |
| More than 60 but not more than 70 | $3,290 | |
| More than 70 | $4,110 | |
Source: IRS Revenue Procedure: 2009-50
2009 Federal Tax Deductible Limits
|
Taxpayer’s Age At End of Tax Year – Deductible Limit |
|
| 40 or less | $ 320 |
| More than 40 but not more than 50 | $ 600 |
| More than 50 but not more than 60 | $1,190 |
| More than 60 but not more than 70 | $3,180 |
| More than 70 | $3,980 |
Source: IRS Revenue Procedure: 2008-66
2008 Federal Tax Deductible Limits
|
Taxpayer’s Age At End of Tax Year – Deductible Limit |
||
| 40 or less | $ 310 | |
| More than 40 but not more than 50 | $ 580 | |
| More than 50 but not more than 60 | $1,150 | |
| More than 60 but not more than 70 | $3,080 | |
| More than 70 | $3,850 | |
Source: IRS Revenue Procedure: 2007-68
Example: A husband and wife ages 55 and 49 purchase policies. The Eligible amount that the husband can include toward reaching the 7.5% of the Adjusted Gross Income (AGI) threshold is $1,150. The wife (age 49) can apply $580. Note: In two years, when the wife will fall into the 51-to-61 threshold, the higher amounts for both will apply. And, these amounts are increased annually.
Planning Tip: Some LTC insurers offer “shared care” policies where two people share one pool of benefits. This may be used to maximize the eligible tax deductibility when there is a difference in ages between the spouses.
Tax Savings Tip: Long-term care insurance premiums may be paid from a Health Savings Account (HSA) up to the limits shown above.
Taxability of Benefits Received: Generally, benefits received from a tax-qualified LTCi policy that was purchased by an individual are non-taxable and therefore excluded from Adjusted Gross Income. Benefits paid under an indemnity policy are not taxed unless they exceed the higher of the cost of qualified long-term care or $280-per-day (the 2009 limit). The 2010 limit is $290-per-day.
Self-Employed
IRS Announces Higher Tax Deductions For Long-Term Care Insurance
The Internal Revenue Service (IRS) has approved increased deductibility levels for long-term care insurance policies purchased in 2010 according to a just-issued report by the American Association for Long-Term Care Insurance, the industry trade group. Some 8.25 million Americans currently own long-term care insurance and several hundred thousand new individuals purchase protection each year according to the trade group. In addition to federal tax advantages, a number of states now offer tax deductions or credits to those who purchase long-term care insurance protection. A credit is a dollar-for-dollar reduction in the actual cost of insurance.
Tax deductions are limited for individuals financial experts note. However, business owners may be able to fully deduct the cost of long-term care insurance for themselves and selected employees. In addition to the tax deductions, a number of insurers now are offering discounts to employers who offer coverage to as few as three employees.
There is still time to take advantage of tax deductions in 2009 and also benefit from the increased deductible limits for long-term care insurance next year. To accomplish this, the policy must be purchased prior to the close of the tax year and financial professionals recommend speaking to both your insurance and accounting professional.
The federal deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:
2010 Long-Term care Insurance Deductible Limits Attained Age Before Close of Taxable Year
40 or less: Deductible Limit: $ 330 More than 40 but not more than 50: $ 620
More than 50 but not more than 60: $1,230
More than 60 but not more than 70: $3,290
More than 70: $4,110
Jesse Slome, Executive Director of American Association of Long-Term Care Insurance on Panel of Experts to Select the National Family Caregiver Award Winner
http://www.businesswire.com/news/home/20091013005932/en Panel of Experts Will Convene to Select National Family Caregiver Award Winner GREENWOOD VILLAGE, Colo.--(Business Wire)-- Homewatch CareGivers, the largest, most experienced international provider of full-service home care, announced the regional winners of the company`s Family Caregiver of the Year award. All regional winners are awarded a scholarship to Homewatch CareGivers University and will be among the finalists for the National Caregiver of the Year and a $5,000 grand prize. The national winner will be selected by a panel of experts from healthcare-related organizations. "Everyday we see the devotion and kindness family caregivers provide to their loved ones," said Leann Reynolds, president of Homewatch CareGivers. "This program was created to recognize and support the faithful care they provide." The Homewatch CareGivers regional Family Caregiver of the Year Award recipients are: -- Disa Almeta, Lincoln, AR -- Wilda Lindquist, Boulder, CO -- Laura Dover, Charlotte, NC -- Lydia Maddoux, Laurel, MD -- Jill and Larry Ellis, Denver, CO -- Kenneth Meyer, Greenville, SC -- Anne Fisher, Pleasant Grove, UT -- Cindy Prouty, Mattawan, MI -- Judy Heier, Puyallup, WA -- Kenneth J. Rosa, Los Angeles, CA -- Laura King, Atlanta, GA -- Joyce Schultz, Chesterland, OH A prestigious panel of judges, representing a diverse cross-section of companies and organizations in the healthcare and care-giving sector, will assembly in mid-October to review each regional winner`s nomination application in order to select the national winner: * Robert Bua, CareScout and Genworth Financial - Vice President Long Term Care * Nina Buchanan, Holiday Retirement - Director Health Resources * Jeff Frater, Case Management Society of America - Past President * Susan Lutz, AARP - Project Manager, Health and Supportive Services * Kelli Moorehead, Alzheimer`s Association - Team Lead, National Office * Jesse Slome, American Association for Long Term Care Insurance - Executive Director * Kim Stoneking, National Private Duty Association - Executive Director * Leann Reynolds, Homewatch CareGivers - President "We`re most grateful for the time and commitment of our volunteer judges," added Reynolds, who will serve on the panel with the other seven judges. "Their perspectives make them uniquely qualified for this cause, and our team is looking forward to the insights they can provide to the spectrum of care-giving challenges facing our society today." The National Family Caregiver of the Year winner will be announced by the end of October. For more information on this program or Homewatch CareGivers, visit www.homewatchcaregivers.com. About Homewatch CareGivers Founded in 1980, Homewatch CareGivers is the largest, most experienced international provider of full-service home care for people of all ages, including seniors, children, veterans, the chronically ill, and those recovering from medical procedures. In-home care services are personalized for each client and customized care plans are administered through an international network of 111 owners with 181 territories which includes 10 international owners with 19 international territories. Each office is locally owned and dedicated to ensuring quality of life for clients and peace of mind for their loved ones. Call 1-800-777-9770, visit www.homewatchcaregivers.com for company and caregiver information, or learn more from http://www.youtube.com/watch?v=UwSRiMuM2DA. SJI, Ltd. for Homewatch CareGivers Reid Wegley, 206-408-7208 reid@sjiltd.com Copyright Business Wire 2009
Americans Fail Long Term Care Insurance Planning Quiz
When it comes to knowledge about long-term care insurance planning, Americans once again received a failing grade. Long-term care poses the single largest risk to Americans living on retirement savings and income according to the American Association for Long-Term Care Insurance, the industry trade group. Yet, few consumers have the facts correct when it comes to understanding available planning options.
As the U.S. population ages, the percentage of people older than 65 will increase from about 13% in 2009 to 20% in 2040. Part of the projected increase is due to an increased life expectancy beyond age 65. After retirement health insurance and Medicare provide very little long-term care benefit, if any, according to financial planning professionals. The results of a just-released national study of individuals between 40 and 70, most reported knowing what long-term care is and how much it costs. But their scores fall short when it comes to knowing what percentage of people will need long-term care and how they will pay for it. According to the study conducted by the MetLife Mature Market Institute, just about four in ten adults (36%) know that 60-to-70 percent of 65-year-olds will require long-term care services at some point in their lives. Just over one-third knew that most long-term care services are received at home. While the number of respondents answering correctly (37%) increased since the 2004 survey (18%), awareness is low overall. Few participants in the survey reported that they are taking action to protect themselves from such potentially catastrophic expenses; only 18% know long-term care insurance rates are based on age, but almost nine in ten (87%) are aware that a comprehensive long-term care policy covers home, assisted living and nursing home care.
The survey also reported that eight in ten respondents (85%) understand that long-term care could have many causes, such as Alzheimer’s disease, an accident or a chronic or disabling condition. More than four in ten (43%) are able to correctly identify the national average monthly cost for assisted living.
For more information on long-term care insurance, visit the Association’s Consumer Information Center where you can read the organization’s free guide on reducing the cost of long-term care insurance. Click here to read the guide.
