Owning Long Term Care insurance means you gain values such as:
- Not becoming a burden on family who will be free to hire and manage the professionals providing your assistance; to care about you; plus help as they can.
- Children won't be faced with the very emotional and also difficult task of providing personal care to a parent!
How does this special insurance I like to call
Key Family Protection© work?
How does this special kind of insurance work?
When a plan is purchased a special pool of funds is created so professional help can be hired. The availability of these funds acts as a wall around your income and savings. Buying today, before your health changes, means you and your family gain additional values such as:
- Being in control of when and where the help you need will be received!
- Being able to maintain as much independence as possible, which in turn means you can retain your dignity.
- Not having to worry about the conflict, which often develops among children, over spending their parents savings nest egg for the care of one parent vs retaining their retirement funds for the other.
Let's look at the value of a Long Term Care insurance plan's ever growing pool of money. If a person age 55 selects a three year Benefit Period plan for Single coverage; an initial Benefit Amount of $7,000 a month with 5% compound inflation protection; and then looks to the future e.g. say age 82 when assistance might be needed their Maximum Benefit pool of funds would have grown to $940,831.
Buyers gain professional care giving counselors. Counselors are available as soon as a life changing situation happens to meet with the individual and family to increase their understanding of the assistance options in the area; provide emotional support; and to develop a plan for the kind of help needed. These professionals are independent from any service providers they may use.
What determines the cost of this coverage? The main factors, which determine the premium are your age on the date you apply and your health situation at that time.
Call John C Parker today - 860.739.0005 We can meet for a free consultation about how the premium provides a guaranteed a pool of money.
What about government coverage?
Some people think MedicAID will be there to pay for any on going assistance. However, the significant state and federal over spending we see today raises the big question - Will funding for this government coverage, which is not guaranteed, continue at today's level?
- Some think it will continue so they will just wait and rely on MedicAID.
- On the other hand if you think funding for this coverage will be reduced - then buying Long Term Care insurance means you and your family won't find yourself in the kind of lifestyle, which comes with being on welfare.
Note: In Connecticut because of very low reimbursement MedicAID rates on going assistance is usually only available in certain nursing homes. More information on how government care works.
What does all this tell us?
No one can predict tomorrow thus the saying - "Life is what happens when you are making other plans" really emphasizes why owning this special coverage is so important. A couple points about the cost of this important protection:
- The premium paid over a period of time, what ever it might be, amounts to just pennies on the dollar in comparison to the significant funds you would have to come up with after help begins to be needed.
- When you look at a plan's premium, in comparison to the big risk of high assistance costs, it is lower than the premium cost vs risk for the other kinds of insurance we have!
Bottom line - Owning what might best be called "long term health insurance", is the most economical and effective approach for protection from expensive on going assistance cost.
An important but little understood value - it has a positive affect on taxes!
Having to withdraw funds from investments to pay professionals means taxes will be due on each dollar withdrawn. On the other hand funds received from insurance are tax free. The IRS also allows a person who purchased a tax qualified Long Term Care insurance plan to take a partial deduction (age based) when they complete their IRS 1040. Here are the allowable amounts and other details.
The next page has important information on the advantages of taking action today to plan for long term care services
John C Parker, has achieved professional designations as a Long Term Care Insurance professional and a Registered Health Underwriter. John is licensed to conduct business in CT (644135) and RI (1058420) and does not solicit or sell in other states.
This site shares insights from extensive involvement in professional associations, industry conferences, working with leading Long Term Care Insurance organizations, and individual research. These pages do not advocate a specific company or plan.