Long Term Care

Long-term care insurance (LTC or LTCI) is an insurance product, sold in the United States, United Kingdom and Canada, that helps pay for the costs associated with long-term care. Long-term care insurance covers care generally not covered by health insurance, Medicare, or Medicaid.

Long term care insurance rates vary. According to the 2012 long term care insurance Price Index the costs for LTC insurance can vary significantly. Age 55, standard health rate. Initial policy benefit for EACH is $164,000 based on a Daily benefit of $150 and 3 year benefit period.

When should you buy long term care insurance?  Costs increase on your birthday. The annual rate increases are generally 2-4 percent in your 50s but start to be 6 to 8 percent per-year in your 60s. In 2009, new buyers of individual long-term care insurance were the following ages: Under age 54 (26.5%). Between 55 and 64 (54%).
 
Can you deduct long term care insurance premiums?  Premiums for "qualified" long-term care insurance policies are tax deductible to the extent that they, along with other unreimbursed medical expenses (including Medicare premiums), exceed 10 percent of the insured's adjusted gross income, or 7.5 percent for taxpayers 65 and older.
 
A number of considerations go into how much long-term care insurance any consumer should buy. The average cost of a private room in a nursing home is nearly $250 a day, and the average monthly base rate in an assisted living facility is $3,550.
 
If you have a Long-Term Care insurance policy, it should cover assisted living as well. If there is a policy designated for home care, it should be able to be used for assisted living too. There are “facility-only” policies which covers care only in a licensed assisted living facility or skilled nursing facility.
 
This information is not intended to be tax or legal advice, and it may 
not be relied on for the purpose of avoiding any federal tax penalties. 
You are encouraged to seek tax or legal advice from an independent 
professional advisor.