Long Term Care Planning
October is Long-Term Care Planning Month. This is a topic worthy of our attention and can be a serious issue for those who find themselves in a situation where it is needed. Nearly 70% of Americans 65 and older need long-term care at some point, according to the U.S. Department of Health and Human Services.
About one in four LTC claims are attributed to Alzheimer’s, according to the Society of Actuaries. Other claims are attributed to physical issues ranging from chronic illnesses to injuries and disabilities.
Long-term care insurance is one of the most complex types of insurance you may consider purchasing. Here’s a list of some questions to ask that may help you better understand the costs and benefits:
What is the benefit amount?
Policies normally pay benefits by the day, week, or month. You may want to evaluate what long-term care facilities in your area are charging before committing to a policy.
What is the maximum benefit amount?
Some policies limit the total benefit they’ll pay over the life of the policy. This could be stated in years or in total dollar amount.
How are benefits triggered?
Insurance companies use certain criteria to start benefits. Commonly this is an inability to do a certain number of the activities of daily living without assistance.
Many policies have benefits for Alzheimer’s disease as well.
There are more questions that should be asked of your considered provider, so that you can get a full picture of the available benefits.
Another important thing to consider is that having an alternative safety net at your disposal (investments for example) will offset the potential costs of long-term care. Think of it as a savings account for the out-of-pocket costs that may be incurred during a scenario where LTC is required.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC