The Basics of Long-Term Care Insurance:
With America aging at a rapid pace — and with the average cost of nursing home care continuing to skyrocket — long-term care insurance can be a solid investment for individuals who have assets they want to protect or who want to avoid becoming a financial burden to their family. Today the average cost of private nursing home care in America tops $90,000 a year.1
Long-term care coverage helps to pay for assistance with daily activities such as bathing, eating, and dressing; skilled nursing care or rehabilitative services either in a nursing facility or home setting; and cognitive impairments such as Alzheimer’s disease.
Before making any decisions, compare several policies, paying special attention to the company’s financial stability and reputation in the industry, coverage details, eligibility requirements, and premium costs.
When shopping for long-term care insurance state insurance regulators and the American Council of Life Insurance, and the American Health Care Association recommend that you pay special attention to the following features: Company Reputation and Legitimacy, Coverage Parameters, Benefits Payout, Waiting Period, Eligibility. Benefits Protection. Tax Implications.
Be aware: Neither Medicare, Medicare supplemental coverage, nor standard health insurance cover long-term care expenses; and Premium costs increase as you age.
1Source: MetLife Market Survey of Nursing Home and Assisted Living Costs, 2012.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. Investing involves risk, including loss of principal.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
About the author: Charles Marsala is a Financial Advisor with Benchmark Investment Group with Securities offered through LPL Financial, a member FINRA/SIPC. He can be contacted at Charles.Marsala@lpl.com.