Long Term Care premiums tax deductible

It's a good idea to make a move toward getting long term care now before the end of the year because the year's premium is tax deductible: one more reason to seriously consider long term care insurance.

Reasons WHY people buy Long Term Care Insurance

The three biggest reasons to buy long term care insurance:

1. The overwhelming reason people buy long term care insurance is NOT to be a burden to their family and loved ones. Sure, there are loved ones who will take on the responsibility for our care, but is it really fair to expect them to? Have you thought about the logistics of it all? Who is going to be the caregiver? Are they even physical able to carry out the tasks that will need to be performed? No one knows when they might need long term care. Long term care is something we don't plan on needing, but you have to agree it can happen to you.
2. Another reason people buy long term care insurance is that they have assets they want to protect. It really doesn't matter how much money you have, or how big the portfolio. It matters that it is yours (ours) and we all want to protect what is ours. The cost of long term care nationwide is 70K a year for nursing home care and 34K for in-home care. If you do need long term care and you don't have long term care insurance, then you will have to use your own money to pay for it.
3. The next reason people buy long term care insurance is to avoid welfare. Medicaid was designed for the disabled and less fortunate persons who are not able to finance their own long term care. Medicaid has a 5 year look back to prevent people from hiding assets. In order to qualify for Medicaid, one has to spend down to almost their last nickel. Many people have an aversion to welfare and sometimes the standard of care is not as it should be. With the government taking care of you, you've lost a large amount of your independence-if not all.

There are critics who say, "long term care is a waste of money and it's expensive."

Well, to counter, I'd like to say, "I hope it is a waste of money" and this is what I mean by that.

The critics don't say that about home insurance or health insurance, or car insurance. Why in the world would they say that about Long Term Care Insurance? The threat of long term care is greater than all three of the other risks combined. I don't know about you, but I don't go to bed at night thinking, "Hum, I haven't used my car insurance for the last 30 years and look at all the money I've wasted, I sure hope I get to use it tomorrow!" or "I pay all this money for health insurance, I sure hope something happens so I can use it!"and "I haven't had a fire, or had a home invasion lately..." Well, you get the picture.

I go to bed at night with the peace of mind that my risks are covered...especially the risk of long term care. I secretly hope my premiums are a waste of money. I don't want to use any of it, but the threat of long term care is real and I want to be protected.

Expensive? Well, maybe the critics haven't pitted the cost of long term care premiums against the price of long term care. There are many web sites that provide the cost of long term care. Visit my website: eaglelongtermcareconsulting.org to get links on trusted sites. Compared to 74K a year for nursing home care, 1000K a year premium (depending on your age) doesn't sound at all bad. It's just a drop in the bucket!

LTC plans

There are several plans when it comes to long term care:

1. First is the No-Plan plan. This is the plan that when it comes to needing long term care sends you and your loved ones into chaos. The No-Plan plan has no guarantees. Whatever happens happens and if you don't have enough money in the bank--then you can drop down to plan #3-the government plan.
2. Second is the Family Plan. The family plan is when you designate a member of your family to take care of you when you can't take care of yourself. If you are on the Family Plan it is a wise choice to make sure the family member knows what is in store for your caregiving i.e. eating, dressing, bathing, toiling, transferring, continence.
3. Third is the Government Plan. Medicaid is the disabled and those who are unable to pay for their own medical care. If you are on the No-Plan Plan and do not have money to pay for your long term care, then you will eventually be on the Government Plan. Take note that the government has a 5 year look back to keep people from hiding assets. With the government plan as well as the above plans, you lose your independence the moment you need long term care.
4. Finally, the Long Term Care Insurance plan. This plan guarantees your independence. It frees your family from the burden of your care. We all know our family will take care of us, but is it really fair to expect them to? Long term care insurance kicks in when you can't take care of yourself and provides in-home, assisted living, day-care, and nursing home care if the need arises. This is the only plan that provides peace of mind for both yourself and your loved ones.

There is no risk greater than long term care. Having a plan makes sense.

A Drop In the Bucket

Long Term Care is averaging $74,000 a year for nursing home care in West Virginia. Yearly premiums are just "a drop in the bucket" compared to what people pay out of their life savings. Doesn't it make sense to adjust your budget or let the interest off your savings and investments pay for the premiums rather than risk losing your life savings?

The cost of long term care will increase, how is the policy I buy now going to protect me in the future?

With a three or five percent inflation protection on your long term care policy, your 'pool of money' grows as time marches on.

So, for instance with 3% inflation protection, a $72,000 pool of money will grow to almost $94,000 in 10 years! Genworth offers inflation protection.

How can I get Long Term Care Insurance?

Underwriting Long Term Care policies are done according to health. You shouldn't wait until your health begins to fail to consider getting insured. If you do, it may be too late to get the coverage.

Another reason for not waiting is price. There is a 'cost of waiting' when buying Long Term Care insurance. Premiums are based on age. The older you are, the higher your premium. Considerably higher, so it is best to get it while you're young.

What is long term care?

WHAT IS LONG TERM CARE?

Definition:

It is a range of medical and/or supportive services for those who lack some capacity for self-care due to a chronic illness or condition, and who are expected to need care for an extended period of time. (Normally, 90 days or longer)

Important Terms:

Skilled Care - Involves daily nursing and rehabilitative care that can be provided only under a doctor=s supervision by medical personnel.

Intermediate Care - Involves occasional nursing and rehabilitative care that can be provided only under a doctor=s supervision by medical personnel.

Custodial Care - Involves assistance with the activities of daily living (ADL=s) provided by non-medical personnel.

ADL=s - Dressing, Eating, Toileting, Continence, Transferring, and Bathing.

Cognitive Impairment - Is a deterioration or loss of intellectual capacity which requires continual supervision to protect yourself or others.