Long term care (LTC) is getting expensive every year that is why the experts on the field would constantly remind everybody to buy your LTC insurance policy early as it is the only product that will protect your finances, family, and your dignity. It wouldn’t be that costly only if CLASS Act was not cancelled but don’t fret because there are still other ways how to cut the cost.
Long term care insurance (LTCI) is not like any regular commodity which people can buy off the store’s shelf and use right away. This type of insurance product requires buyers to be young and healthy but it will benefit them later once they’re frail, injured or disabled.
LTCI policies offer what you can never get from your regular health insurance, which, only covers certain types of medical services such as vision checkup, dental treatment, doctor’s fees, physical examination, and other related ones. It will neither foot your nursing home bills nor pay the home health care agency which is responsible for providing you with a home health aide or homemaker services.
Ignoring the importance of having an LTCI policy will subject you to very high out-of-pocket costs should you wind up acquiring LTC in the future. It’s important to note that only individuals who are earning $150,000 or more annually can self-insure because the average annual cost of a nursing home ranges from $77,745 to $85,000.
You can say you won’t enter a nursing home so you don’t have to spend that much, but you can never be too certain about the outcome of your health, can you?
If you are not too confident that you can afford the continuously soaring cost of care, you can look into a tax qualified LTCI policy and spare yourself and your family from possible impoverishment.
Buy Your LTC Insurance Policy Early
Contrary to many misconceptions, you don’t have to pay thousands of dollars for the premium of your LTCI coverage if you purchase your policy before the retirement age which is 65. As a matter of fact, if you buy your policy at the age of 50 or younger you can enjoy the privilege of paying less than a thousand dollars every year for your coverage.
This is especially true for those whose health is in tiptop condition. If you don’t manifest symptoms of any illness during your application for an LTCI policy, you can get 10% to 15% good health discount on your premium.
Meanwhile, those who buy their policies after retirement, or a few years before, have smaller chances of clinching premium discounts because when one gets to the age of 65 his health usually begins to deteriorate.
Aside from premium discounts, securing a policy at a younger age will give you reason to look forward to big tax deductions. Premiums that are paid for tax qualified LTCI policies are treated as medical expenses according to the Internal IRS Code Section 213(d), and since medical expenses can be deducted from one’s income tax return you can expect big deductibles every year.
Based on a national survey, less than 10 million people in the country have LTCI policies while the remaining 3.8 million have yet to figure out a plan. This information poses a threat to the government as it is only capable of providing limited LTC coverage via Medicaid.
Shop for long term care quote early and buy your LTC insurance policy early so you don’t rely on mediocre health care services in the future. Furthermore, planning your LTC efficiently will spare your family from possible financial losses which have befallen many families.