Here you will find the basic considerations when choosing Long Term Care policies with featured "Expert Advice: " power point presentations from Ed Shayne, LUTCF. Ed's years of experience brings invaluable, compassionate, in-depth information and analysis to your insurance investment decision.
There are two types of LTC policies: Tax Qualified and Non-Tax Qualified.
Tax Qualified Benefits are tax deductible and the older you are, the more you can deduct. The government warrants never to tax the benefits of Tax Qualified policies.
Benefits cover the essential Activities of Daily Living (ADL's) to include:
|
Tax Qualified ADLs |
Description of Assistance Required for Allowable Benefit* |
| Bathing | Help into or out of a shower or tub, needing help washing/drying oneself. |
| Dressing | Help putting on ones clothes. |
| Eating | Help getting food and drink up to your mouth and cutting food. |
| Toileting | Help onto and off the toilet, wiping, and washing up. |
| Continence | Help holding and letting go of bowels and bladder with/without catheters. |
| Transferring | Help getting in or out of a bed, chair or car. |
* - at least two taxable needs must be present to trigger pay-out on a tax qualified policy.
Non-Tax Qualified Plans include an additional Activity of Daily Living (ADL):
|
Non Tax Qualified ADLs |
Description of Assistance Required for Allowable Benefit** |
|
Ambulating |
Help getting around, walking in some fashion. |
The federal government may tax the future benefits of Non-Tax Qualified policies and can do so retroactively. This could generate tax liabilities of tens of thousands of dollars and must be considered when choosing which plan is right for you.
Expert Advice:
Choosing Care Options (ppt)
Over 90% of Americans surveyed would prefer receiving Long Term Care in their homes. Home Care begins the cycle of LTC for many.
Expert Advice:
Choosing LTC Benefits (ppt)
Start with the annual cost of Nursing Home Care in your area. Then, subtract that cost from your projected net annual income and divide by 365 to get your daily benefit.
The average length of claim is three years due to many beginning the cycle of LTC at home.
There are 3 methods of counting days in the Elimination Period. These can be confusing. Choose a period of no more than 30 days to begin timely coverage.
The average claim begins at age 82. The inflation rate tool can help plan for future costs.
If you are younger than 65, consider annual compounding.
If you are between 65 and 75, consider simple inflation or raising the daily benefit.
Reimbursement Policies provide the lowest premiums but can be a lot of work for family members dealing with fluctuating care at home. If you're planning on receiving care in a Nursing Home they are easier.
Indemnity plans pay the entire daily benefit as long as one covered service has been performed. The are much easier to administer by family members while receiving LTC at home.
Feel free to give Ed a call to discuss your plans and hopes!
Choosing Care Options (ppt)
Over 90% of Americans surveyed would prefer receiving Long Term Care in their homes. Home Care begins the cycle of LTC for many.
Expert Advice:
Choosing LTC Benefits (ppt)
Start with the annual cost of Nursing Home Care in your area. Then, subtract that cost from your projected net annual income and divide by 365 to get your daily benefit.
The average length of claim is three years due to many beginning the cycle of LTC at home.
There are 3 methods of counting days in the Elimination Period. These can be confusing. Choose a period of no more than 30 days to begin timely coverage.
The average claim begins at age 82. The inflation rate tool can help plan for future costs.
If you are younger than 65, consider annual compounding.
If you are between 65 and 75, consider simple inflation or raising the daily benefit.
Reimbursement Policies provide the lowest premiums but can be a lot of work for family members dealing with fluctuating care at home. If you're planning on receiving care in a Nursing Home they are easier.
Indemnity plans pay the entire daily benefit as long as one covered service has been performed. The are much easier to administer by family members while receiving LTC at home.
Feel free to give Ed a call to discuss your plans and hopes!
Choose the care setting of your long term care policy:
- Facility Only - Covers benefits and services only in a licensed Assisted Living or Skilled Nursing Facility.
-
100% Integrated Home Care - Covers benefits and services in licensed Assisted Living and Skilled Nursing Facilities and in non-licensed and in home settings.
Choose the benefit amount of your long term care policy:
Choose how long your long term care policy pays:
Choose when your long term care coverage begins:
Choose Inflation Protection of your long term care policy:
- Maximum Daily Benefits can be selected between $50 and $400.
-
Allocated Weekly Benefits can selected between $350 and $2800.
Choose how long your long term care policy pays:
- The Benefit Period can be 2,3,4,5 or unlimited in years.
Choose when your long term care coverage begins:
- The Elimination Period is the number of days after the needs trigger a pay-out before the policy begins providing benefits.
-
Can be from day 0, 20, 30, 60, 90 or 100+.
Choose Inflation Protection of your long term care policy:
- 5% Annually Compounded Inflation Rider
- 5% Simple Inflation Rider
- No Inflation Rider
Choose how you wish your benefits to be paid:
- Reimbursement: The benefits received under these policies must be provided by a state licensed facility or home health care agency. Initial payment must be made by the beneficiary and will be reimbursed up to the maximum daily benefit or allocated weekly benefit after the insurer determines the care has been provided in accordance with the policy.
-
Indemnity: Pays out the maximum benefit upfront with no restriction on licensing of care providers including friends and relatives.
