As the American population ages, long-term care insurance (LTCI) will become increasingly important. According to research, 52% of Americans 65 years and older will require long-term care due to a major disability.

Long-term care insurance is health care designed for people with chronic ailments, disabilities or conditions that require daily assistance. The type of care can include tasks such as dressing, bathing, and eating, in addition to expert care provided by nurses or other medical professionals.

Long-term insurance can cost more than other healthcare plans. However, there are many benefits to investing in a LTCI insurance plan.

  1. Reduces the Burden of Care
    Family members are usually willing to assist with caring for older relatives, but sometimes it isn’t always feasible. Trying to balance their own families and personal lives while caring for an older relative can be challenging. Taking out long-term insurance will help to reduce the financial and mental burden that your family can experience.
  2. Lower the Cost of Expensive Care
    Long-term care insurance can be costly. According to the 2017 National Median, the average cost for an assisted living facility is $45,000 per year (3% growth over 5-years). Without covering some of this cost, it can be extremely expensive and place a significant financial strain on you and your family if long-term care is needed. LTC insurance premiums increase with age, so to keep costs down it is something worth considering as soon as possible.
  3. Provides Peace of Mind
    Your long-term insurance plan acts as an emergency fund for elderly care. The policy ensures there are sufficient funds available to cover your long-term care expenses, should anything happen. LTCI can provide peace of mind that and help you and your family plan for the future.
  4. Allows you to Choose Where to Receive CareYou can customize an insurance plan to meet your specific needs. Long-term insurance gives you the flexibility to choose whether you receive care at home, in a nursing home, or an assisted living facility. According to the American Association for Long-term Care Insurance, home care made over 50% of the LTCI payouts. The added flexibility allows you to stay in your home for as long as possible.
  5. Access to quality care
    With long-term insurance, you will have access to highly qualified caregivers. You may need assistance with daily needs such as cooking and cleaning, ongoing expert care provided by medical professionals. Whatever services you need, your plan will ensure you receive quality care and attention.
  6. Offers tax incentives
    With the government looking to reduce the public’s reliance on Medicare and Medicaid for LTCI, there are many tax advantages to purchasing a policy. Premiums are tax-deductible (taxpayer, spouse, and dependents), as long as they are more than 7.5% of your adjusted gross income.

Do you need long-term care insurance?

Long-term care insurance is not for everyone and will depend on your situation. Although, with many individuals over 65-years of age requiring long-term care services in the future, and the wealth of benefits it provides, it’s important to consider.

Please contact us if you have any questions.