Long term care insurance provides coverage in the event that long term care is required. It limits the risk in the event of extended illness, since it picks up expenses and costs that standard health care coverage does not, such as hospice care, nursing home, home care provider, and assisted living expenses. This greatly eases the financial burden that family members would otherwise face if they had to meet these expenses.
Everyone loves a tax break and if you didn’t know already, some situations allow long term care insurance premiums to become tax deductible. The future of long term care insurance is that it is inevitable, meaning it’s inevitable that you will need it at some point in your life. People are taking care of their health more and more and so they are living longer.
Unfortunately the Community Living Assistance Service and Supports (CLASS) Act was repealed earlier this month. This would have created a voluntary system that allowed employees to contribute to a government operation to provide long term care services to people that wanted it.
Buying long term health care for yourself and your loved ones is one of the best choices you can make. The premium can be high, as much as $1,700.00 annually, but when compared to having to pay for long term care out of pocket in the future, it is a solid investment. The knowledge that any long term care expenses are being taken care of is a major relief to most people.
Nursing home care costs approximately $70,000 per year. The expense of 24-hour home care provider can be astronomical, and even a willing family is frequently unable to contribute much. If you plan ahead, long term care insurance can save you a fortune in the future, and it should be a crucial component of your retirement planning.
The good news is that a lot of people are living longer; the bad news is that they may not be able to fund this longer life. If you are in a middle class tax bracket you will not qualify for Medicaid from the government. So you will have to fund the long term care insurance (or LTCI) yourself.