LONG TERM CARE INSURANCE

It’s About Independence & Security

BY EDWARD HUTTICK, CERTIFIED FINANCIAL PLANNER
AND ALAN PLAFKER, PRESIDENT & CEO
MEMBER BROKERAGE SERVICE LLC
A MELROSE CREDIT UNION SERVICE ORGANIZATION





Being financially secure — Living life the way you want

That’s what independence is all about. But realizing your goals requires proactive planning including taking into account how the need for long-term care can impact your financial security, your lifestyle, and your family’s well being. Long-term care is the type of assistance people need on an ongoing basis due to a physical or cognitive impairment that prevents them from performing normal daily activities such as eating, bathing, and dressing.

The impact of long-term care; you’re probably not already covered

Many people mistakenly believe their long-term care needs are already covered, but long-term care assistance isn’t typically paid for by health or disability insurance. In addition, government programs such as Medicare and Medicaid aren’t designed to cover these costs. By planning ahead today with long term care insurance you’ll take an important step toward helping to protect your future.

• National average cost for one year of nursing home care is over $75,000
  
  
  
• Annual projected cost for needing care in 30 years is over $250,000
  
  
  
• Projected cost for a three to five year care event in 30 years is $750,000–$1,250,000
  
  
  
• Percentage of people over age 65 that will require long-term care services at some point in their lives is about 70%
  

What is Long-Term Care?

Long-term care (LTC) is the health industry name for care and related expenses associated with an extended illness or injury including rehabilitation and maintenance of a person who is disabled and cannot care for himself and who is expected to need care for an extended period of time.

Advances in medical technology have made it possible to recover from many medical conditions that previously resulted in death, however, the patient may still experience a lengthy period of disability and resulting necessary care related to chronic conditions. Ninety-five percent of long-term care in the United States is custodial in nature. Private health insurance and disability income coverage do not reimburse these costs, nor does traditional government program assistance such as Medicare. Both private and public programs were established to help fund short-term medical expenses, and a gap currently exists in most people's financial planning.

HERE ARE SOME PRIMARY REASONS FOR PURCHASING COVERAGE:

Control and Access to Quality

Comprehensive LTC insurance helps ensure that options will exist after a disability occurs; you will choose where and how to receive care rather than being restricted to low cost or affordable options. Owning LTC insurance allows you to choose your type of care as well as who delivers the care instead of the government choosing it for you.

Independence

LTC insurance can provide options to remain in one's home instead of obtaining care in a nursing home or similar setting. Receiving care at one's home will not force the disabled person's children to become care givers out of necessity. Instead, children can play whatever role they wish and parents will not feel guilty about interrupting their children's lives.

Asset Protection

LTC insurance can save money and ensure that personal savings and other assets will be used for the purpose originally intended rather than paying for long-term care health expenses. LTC insurance provides peace of mind; it provides financial security during a stressful time, and is not subject
to the woes of the stock market. The financial freedom and security LTC insurance provides is one of the primary reasons people purchase this type of insurance.

Taxes

LTC insurance premiums can be tax-deductible. The deduction is more likely to be realized by a business owner than an individual, but there are some guidelines for LTC insurance deductions based on age if an individual itemizes medical expenses. Consult an accountant for more specific information.

The time to prepare is now while you’re young and healthy

When it comes to long-term care planning, it’s important to address your future needs sooner rather than later. Your age and health are key factors that will determine the cost of your long-term care insurance policy. The younger and healthier you are when you purchase your policy the more affordable it will be. The coverage you buy for your future also protects you today. If an accident or illness were to occur when you are relatively young owning a long-term care insurance policy would ensure you have coverage to help pay for the cost of your care.

The benefits of long-term care insurance

A long-term care insurance policy helps protect your assets by providing you with a pool of money to help cover the cost of care. In addition, our long-term care insurance policies:

• Provide you with the ability to choose where to receive care including your home, a facility, or in your community,
  
  
  
• Reduce the burden of care that may often fall on family members,
  
  
  
• Give you access to valuable support including helping you obtain the right care, assistance with the claims process, and advice to help you and your family manage care decisions.
  

With long-term care insurance you can look to the future with confidence knowing you’ve taken the right steps to help protect your assets and your family.

As with any insurance coverage, the protection that your policy provides is only as good as the carrier behind it. Make sure your LTC insurance policy is backed by a company with some of the highest ratings for financial strength in the industry.

For more information talk to your financial professional, or the author of this article.

Your Professional Insurance Agent …
We want you to know about the insurance you’re buying.

Alan Plafker, CPIA is President of Member Brokerage Service LLC, a Melrose Credit Union Service Organization. He is a Certified Professional Insurance Agent and licensed Insurance Broker. He serves as First Vice President on the Board of Directors the PIANY (Professional Insurance Agents Association of NY), serves on the Board of CIBGNY (Council of Insurance Brokers of Greater NY), and serves as Treasurer for the New York Independent Livery Driver Benefit Fund Board of Directors. His Agency insures thousands of polices for TLC Insurance as well as many policies for all types of insurance. You can reach him in his Briarwood, Queens office at (718) 523-1300 Ext. 1082, or visit the website at: www.MemberBrokerage.com