Long Term Care Strategies

  Long Term Care Insurance  

Curved.png

How can we protect you and your family?

 
 
Long Term Care Insurance

Are You Prepared?

The single greatest threat to your financial security

We are living longer than our parents did. As we age, we are more likely to suffer from long term debilitating ailments and diseases such as Alzheimer’s, Parkinson’s or Strokes that require assistance. 

abstract.png

70%

“70% of Americans over 65 will face a long-term care illness or injury that can easily exceed $100,000 a year!”


US Dept. of Health and Human Services

abstract.png

83%

The cost to loved ones is high. “83% of help is provided by family, friends and unpaid caregivers.”


Caregivers Omnibus Study, 2017

abstract.png

157k

“Remember, the risk of needing care is very high and the cost of a nursing home in Connecticut exceeds $157,000 a year!”


State of CT OPM, 2020

You may never need care,

but what if you did? 

Keep in mind, every plan has a cost.  If you are not planning, there is a cost.  Usually, plans by default are much more expensive than plans by design. 

Long Term Care Insurance

Who Pays?

There are only three ways to pay for long term care services

Medicare & Health Insurance plans were never designed to pay for long term care services.

*Medicaid is the Nation’s largest payor of LTC services

The rules are complicated.
 

Any gifts, establishment of trusts, or transfers of assets within 5 years of your request can make you ineligible for Medicaid assistance.
 

The State can dictate which facility you will go to.

 
 
Long Term Care Insurance

Why LTC Insurance?

Six reasons why you need Long Term Care protection.

After working a lifetime to plan for a secure future, millions of Americans have underestimated the serious consequences of not planning for an illness or injury requiring Long Term Care.

Whether you realize it or not, you are creating a plan.  You can either remain in control of that plan, or give up control to others or to the State.  

 
Long Term Care Insurance

Solutions

There are three primary types of insurance solutions.

Life Insurance
w/ Living Benefit
Riders

Marketers in the industry are calling this the “new-type of life insurance”. A life insurance policy which not only pays in the event of death, but allows you to access the death benefit face amount to pay for long-term care. For example, a $500,000 policy would enable you to access the full $500,000 to pay for long-term care. There is always the guarantee of a pay-out and there can never be a rate increase.

Hybrids

An increasingly popular approach and a smarter alternative to self-insuring.  Plans cover all possible life scenarios: a robust LTC benefit or...a death benefit or...a money back guarantee. There is always the guarantee of a pay-out and there can never be a rate increase. Annuities with LTC benefits are also available. 

Traditional

Long Term

Care

Typically the best way to leverage your premium dollar and maximize your LTC benefits. Connecticut Partnership and National Partnership plans provide Dollar-for-Dollar Asset Protection. Inexpensive Short-Term Care plans buy you time to focus on your care needs while avoiding immediate liquidation of savings.    

Rate increases:  Incorrect actuarial assumptions on older LTC policies sold in the 1990’s through approximately 2010 led to underpriced policies resulting in rate increases for most of these policyholders.   

You keep total flexibility and control 

Home, Community and Facility Care

Single pay options

Shared benefits for couples

Return of premium options

Choose your own caregivers

Income Tax favorable options 

Long Term Care Insurance

Tax Considerations

 

Tax qualified long term care insurance policies offer significant tax advantages,
especially when using HSA dollars. For business owners, tax advantages are available for Sole Proprietors, Partnerships, S-Corporations, and C-Corporations, as well as for spouses, dependents and employees of these entities.

For individuals, the deductible portion of the eligible long term care premium is subject to age-based premium limitations, which are adjusted annually. For the latest eligible premium table visit www.aaltci.org.