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Long-term care insurance is coverage that pays for nursing-home care, home health care, care in an assisted living facility, or personal or adult daycare for individuals with a chronic or disabling condition that needs constant supervision. LTC insurance may offer more flexibility and choice of providers compared to public assistance programs, such as Medicaid.

This is always one of the questions we are asked the most and the answer is not as simple as the question may sound. Many people wait to purchase LTCi until the ages of 40 to 65, and some purchase after they have had a personal experience with a family member who required care.

However, the sooner you decide that long term care planning is right for you, the more options you generally have and the more affordable the coverage. That’s not to say that people at older ages don’t have options. A good long term care specialist can help you determine what is available for your situation.

Long term care insurance may be more affordable than you think. There is a range of options depending on your needs and your budget. A long term care specialist may be able to help your find a plan that is right for your circumstances.

The beauty of creating a long term care plan is that the cost of insurance can be tailored to your budget. That means that long term care insurance may be more affordable than you think. The key is to understand how much total insurance benefits you are receiving for your premiums in the future when you are most likely to use the coverage.

We find many clients paying as little as a few hundred dollars in premiums or less per month. However, more often clients will buy more coverage if the product value is expected to cover the cost of care more fully. It even makes great financial sense to pay higher premiums now but pay over fewer years with a limited pay policy, so that you can pre-pay or lock in the rates.

The best way to understand what is best for your situation is to calculate your total premiums and compare to your total policy benefits in the long run.

Yes. Many policies offer compound inflation protection as an added rider to the policy. Inflation protection options may be higher or lower depending on what the carrier offers and what you feel you can afford.

Inflation growth is important because, given the shortage and cost of quality care providers, we expect that the cost of care will continue to increase faster than general inflation.

That depends on your own situation and what you want to achieve with your long term care plan. As a general rule, you will first want to do an analysis of your needs and the cost of care today and in the future with inflation. Genworth has a popular cost of care survey.

Most people choose between $3,000-$9,000 per month as a starting point ($100-$300 per day) depending on their budget for insurance and the cost of care. Then, they determine if they want the benefits to grow and how many years of coverage they desire. Often, these choices are based on how attractive is the pricing of the insurance along with personal experiences in their own family with long term care needs and the quality of care they desire.

For those willing and able to pay out of pocket, insurance can be a supplement to self-funding. The best insurance plan for you is one that you can afford over the long term.

Each carrier has different criteria but in general a policyholder would begin to receive benefits when they are unable to perform at least 2 of 6 activities of daily living (ADLs) or they require substantial assistance due to a serious cognitive impairment.

Yes. Private long term care insurance offers national – and in some cases, international – portability of your benefits. Be sure to let your specialist know of your retirement plans, and he or she will find you a plan that will follow you.

The cost of care in the future can quickly drain your savings. Insurance can help leverage that by offering a larger pool of funds.

Some plans even offer a death benefit that pays a beneficiary if you do not use your coverage.

While researching your LTCi options, you will be matched with an LTCi specialist with years of experience to help guide you to the best plan for your dollar. The consultations are complementary.

LTCi policies may provide:

• A much greater pool of benefit dollars in the future to supplement the high cost of care
• Longer duration of benefits
• Options to get a return of premiums or life insurance if LTC benefits are never used
• The ability to adjust your coverage in the future
• Spousal discounts and discounts for being in good health
• Coverage immediately after issue (no vesting period is required)
• Portability to use the benefits in any state or Canada (international benefits may also be available)
• Tax incentives, such as the ability to use your Health Savings Account (HSA), tax deductibility for business owners, and tax-free benefits

HSA funds can be used to pay LTCi premiums.

• You may be able to contribute pre-tax dollars into your HSA up to annual limit.
• You may be able to pay the premium and request reimbursement from your HSA administrator for you or your spouse each year up to an annual age-based limit.

• Business paid LTCi premiums may be a tax-deductible business expense as health insurance for employees and spouses.
• Self-employed business owners may also be able to deduct LTCi premiums on their individual tax returns up to an annual age-based limit.
• Owners can select which executives or employees to include in the LTCi program.
• LTCi benefits are generally received tax-free even after the tax deduction.

• By filling out the form below, you can meet remotely with an LTCi specialist with years of experience for free to help guide you to the best plan for your dollar.
• Our LTC specialist community is here to help. Long term care planning may be one of the most meaningful things you can do for your family to protect them from becoming unintended caregivers.

BuddyIns is a community of experienced long term care specialists dedicated to helping you find the right plan for you and your family. There is no extra cost for our services, and our specialists are happy to answer your questions regardless of whether you purchase a private long term care insurance plan.