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Long term Care Consultants

 


“Accountants & CPAs play an important role helping Americans and their families plan for and protect a sound financial future. Today, that includes planning for eventual long-term care needs.”

Barry C. Melancon, CPA
President and CEO
American Institute of Certified Public Accountants




Financial Professionals

 Long-Term Care Professionals

Long-Term Care Insurance protects retirement savings and lifestyle. It preserves personal freedom to choose where and how care is received.
It allows loved ones and family members to care about you…instead of having to care for you.
It offers significant tax advantages.
Federal tax law provides benefits to people who incur expenses for long-term care services or who buy Long-Term Care Insurance.


Long-Term Care Insurance

A tax-qualified Long-Term Care Insurance policy may provide tax advantages to individuals and business owners. A policy is considered tax-qualified if it meets several criteria.
The policy must provide benefits only when the policyholder qualifies for help with two or more Activities of Daily Living (ADLs) such as eating, transferring, toileting,
dressing, bathing, incontinence or needs supervision as a result of a cognitive impairment, such as Alzheimer’s disease.
A tax-qualified policy may offer inflation protection and non-forfeiture benefits. The inflation protection option (now available in many formats) ensures that the policy’s benefits increase over time.
The non-forfeiture benefit preserves some coverage for purchasers who stop paying premiums.
Compared to other forms of insurance or retirement savings plans, long-term care insurance is unique in being tax-advantaged when purchased and when benefits are paid out.

Long-Term Care Insurance Comparison 

State Tax Codes Increasing Offer Incentives

A number of States offer tax incentives for the purchase of Long-Term Care Insurance. A knowledgeable long-term care insurance professional can provide more information.

Will Medicare Cover Long-Term Care Costs?

Medicare is generally available for people age 65 or older, younger people with disabilities and people with End Stage Renal Disease (permanent kidney failure requiring dialysis or transplant.)
Medicare pays limited amounts for skilled care following a hospital stay. Medicare does not cover most long-term care services that assist people with the activities of daily living over a long period of time.
Medicare will only cover the first 100 days of care in a nursing home per Benefit Period if you are receiving skilled care, and have a qualifying hospital stay of at least three days and enter the nursing home within 30 days of that hospital discharge.
There are deductibles and co-pays (that increase annually). In addition, Medicare covers limited home visits for skilled care and incidental homemaker services.

Do Individual or Group Health Plans Cover Long-Term Care Costs?

Health plans may cover some of the skilled medical services needed when one can’t care for oneself after an illness or injury, but usually for a limited period and only as long as there is evidence of improvement.
Health plans typically do not cover ongoing chronic care such as an extended stay in an assisted living community or nursing home, or a continuing need for a home health aide to help you in and out of bed.

What About Disability Income Insurance?

Disability income insurance is designed to replace income lost because of an inability to work due to accident or injury. It provides no additional benefits to specifically pay for long-term care expenses. And, it generally ends when you stop working or reach age 65 – just when you are most likely to become disabled and need long-term care.

Download a copy of the Tax Deductibility Rules here.

A Final Word – For You

It pays to partner. Our knowledge and experience with leading long-term care insurers helps you provide your clients with the best options and least risk of a declined application.

And A Final Word – For Your Clients

Unfortunately, there’s no way to know for sure whether your clients will find themselves in a long-term care community or needing specialized care in their own home.
What you can tell your clients is that if they do end up needing long-term health care and they don’t have a strategy in place to cover costs, the cost of long-term care may wind up costing them everything they own.