Top Ten Features
of Long Term Care Insurance
Why consider
long term care insurance?
10. LTCi can provide coverage in the home or
in alternative facilities, like assisted living or adult day care
facilities.
9. LTCi gives you a choice of provider. You’re not limited
to certain government-approved facilities. In fact, some
policies even allow a trained friend or family member to provide
care.
8. LTCi can provide a benefit for life so you won’t run out of
coverage. LTCi protects against catastrophic risk. 10%
of us will need more than 5 years of care ($250,000 in today’s
dollars). Care for life could cost millions. What asset(s) you
own for other purposes will you liquidate to pay for
coverage?
7. The cost of LTCi continues to increase but you can buy LTCi with an
increasing benefit to help counteract the effects of
inflation.
6. Some LTCi policies offer the ability to pay for coverage over a
certain number of years so you don’t have to pay forever.
5. Some LTCi policies can guarantee the premium will not change for a
certain number of
years.
4. LTCi is available with certain life insurance and
annuity products so, if you never need care, you can use the money
you’ve invested or pass it to your heirs. In other words, you don’t
have to choose to “Use it or lose it.”
3. LTCi offers several tax advantages. Premiums are includable as a
medical expense on individual income tax returns.
Company-paid LTCi can be deductible by the company and not taxable to
employees. Qualified LTCi benefits are tax-free.
2. LTCi can provide benefits for pennies on the dollar. A
65-year-old could pay $2,000 per year for a $3,000 monthly
benefit. One year of care (12 months x $3,000/month) would be worth
18 years of premiums (18 years x $2,000/year).
1. LTCi will allow you to maintain your independence without burdening
family.
Submitted by:
Robert Fox, CFP, CLU
Douglas Mortellaro, CPA
Suncoast Advisory Group, LLC
