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Long Term Care insurance premiums can be tax deductible

IRS increases 2017 tax deduction limits for LTC insurance
The 2017 deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:
Attained age before close of tax year 2016:
40 or less $390 -$410
More than 40 but not more than 50 $730 -$770
More than 50 but not more than 60 $1,460 -$1,530
More than 60 but not more than 70 $3,900- $4,090
More than 70 $4,870 $5,110
Source: IRS Revenue Procedure 2015-53 (2016 limits) and 2016-55 (2017 limits).
These amounts can be an itemized deduction for individuals and businesses. Specific details depending on your situation & business type.
Get in touch with us for a detailed written description and a customized quote for Long Term Care insurance or Life/LongTermCare plans.

November is Long Term Care Awareness Month

How will you pay for Long Term Care services?

People work a lifetime to accumulate assets to see them through retirement. Unfortunately, relying on those assets to fund long-term care services may mean:
• Selling stocks or property, cashing in CDs or dipping into 401(k) or savings accounts
• Paying unexpected capital gains tax, income tax and potential surrender charges
• Foregoing returns the liquidated assets were expected to generate
• Abandoning plans to leave an inheritance to children and grandchildren

Planning now means having better choices later.

Should You Terminate Term Life Insurance for Long-Term Care Insurance?

Agent talking to prospectsIs it a good idea to terminate a term life insurance policy and use the money to buy Long-Term Care Insurance? This was the question a healthy individual, age 65, who is planning to work full-time until 70, and has a wife age 55, asked.

Term Life Insurance is one of the cheapest ways to ensure maximum financial protection for your dependents. It would not be ideal to terminate term life Insurance, as his goal is to provide financial protection to his wife in the event of death.

Long-Term Care Insurance would help in paying for assistance, if he becomes chronically ill or disabled, and requires assistance with activities of daily living. The premium will depend on various factors such as age, current health condition, the limits of benefits chosen, etc.

Long-Term Care Insurance should be bought considering the affordability to pay the premium even after retirement. If the premium payment becomes unaffordable and he stops paying the premium, the policy terminates, and all benefits accrued will be lost.

The decision to buy Long-Term Care Insurance should be based on his income, expenses and other finances before and after retirement. Also, family longevity and other health concerns are to be kept in mind.

Younger individuals have an alternative that is more flexible and can relatively be more affordable than Long-Term Care Insurance. That is buying a Whole Life Insurance Policy, with a Long-Term Care rider.

Whole life policies are costlier than the Term Life Insurance, but they have a savings element added to the insurance benefit. It builds cash value for as long as you pay the premiums. The Long-Term Care rider is a relatively cheap add-on when compared to a standalone Long-Term Care Insurance policy. It should be considered carefully, as the benefits available under the rider may be less restrictive.

Proper planning is needed when it comes to your future financial health. To get the facts and understand all the options available based on your own unique needs; fill out the form to the right to download your long-term care insurance planning guide today.

The information is free; the results could pay you hundreds of thousands of dollars when you need it most.

Critical things many people don’t know about Long-Term Care Insurance

Things people don't know about Long-Term CareLong-Term Care Insurance plans have come a long way in offering convenient and flexible long-term care solutions, since the early days. Still, there are certain misunderstandings and objections in the minds of some people. Let’s have a look at some of these…

The most common misunderstanding regarding long-term care insurance is that it provides only nursing care benefits. But, the fact is that it covers home care for a person who opts to “age in place” as well as adult day care and assisted living facilities. American Association for Long Term Care Insurance (AALTCI) statistics shows that Home Care claims are the most among newly opened long-term care insurance claims in recent years.

Today, the benefits payable under long-term care insurance policies are very flexible. Most policies offer services such as home modifications to make your stay at home longer and safer. Modifications such as widening doorways, building wheelchair ramps or installing lifts and handrails are provided under long-term care insurance policies.

The role played by family caregivers is very critical in long-term care. Long-term care insurance policies offer options that make it comfortable for families to care for the elders in their family. Care giver training for family members is provided to ensure that the recipients are getting the best possible care. Even, care provided by family friends, acting as informal caregivers, is reimbursable under some policies.

If the one insured person exhausted his or her benefits, he or she can use the benefits available to his or her spouse. This enables the couples to share their coverage and maximize the benefits. Many Long-term care insurance policies offer this optional benefit called “shared care”.

Long-term Care Insurance policy should be a key element in your retirement plan. It is always better to plan ahead and start early. Age and health conditions are the two most important factors when you are looking for an insurance policy. At a younger age, these factors could be more favorable to you. The coverage will be affordable too. Younger age doesn’t imply that you don’t need any care. Accidents and illnesses that can lead to availing extended personal care can happen at any age. So, It is always better to start early.

The need for long-term care increases, as people are beginning to live longer. As the AALTCI states that during the year 2014, the total amount paid as benefits under Long-Term Care Insurance by the insurers has gone up from $7.5billion to $7.85billion, benefiting about 250,000 individuals. It is true that people underestimate their life expectancy and aren’t prepared to meet the consequences of not planning.

Getting the conversation started about long-term care insurance planning is easy. Simply fill out the form to the right and download your free planning guide today. A specialist with California Long Term Care Insurance Services will help you understand your options and pick the plan most appropriate to your unique needs.

What Would Your Financial Planner Do About Long-Term Care Insurance?

Long Term Care PricesIn a recent New York Times article, Marguerita Cheng, a certified financial planner expressed how happy she was that her father followed her recommendation to purchase long-term care insurance at an earlier age.

Marguerita was quoted saying, “he had bought a policy when he was 68 with a $125 daily benefit with 5 percent simple inflation protections… Last year, his daily care cost $256 but almost all of it was covered because the benefit had increased to $219.75”. Unfortunately, Marguerita’s father passed on at the age of 82.

The article explained that while long-term care insurance isn’t for everyone, it can helps those people greatly that want to preserve their estate, or be able to receive top-notch home care, and quality nursing home care when their health requirements demand it.

Keith Singer, also a certified financial planner and owner of Singer Wealth Management in Florida, was interviewed and expressed that most of his clients have long-term care insurance policies. Keith recommends them to everyone with at least $500,000 in assets, and says that most people buy in the 50s and 60s to avoid the higher costs and risks of denial when buying later on in life.

Several other financial planners also discussed how some people are turning to hybrid policies that combine items such as life insurance and annuities with long-term care insurance benefits. While these types of policies can require a greater investment in premium dollars, they work because if you do not need to access the long-term care insurance benefit, you can still access potentially tax-free income in retirement.

There are a number of ways to reduce your costs when considering long-term care insurance as part of your retirement planning. These methods can include opting for a lower inflation protection rate, or longer elimination period; the amount of time that passes before LTC benefits start to pay.

Finding out what options can best fit in your unique financial situation, you should speak with a licensed professional about long-term care insurance planning today. The consults are free, and you could learn about retirement strategies that not only provide you peace of mind financially, but that also can help you maintain your dignity through quality health care when needed.

Contact your licensed California Long Term Care Insurance Services specialist today for your consult about long-term care insurance planning.


Could Long Term Care Insurance Become Mandatory?

Mandetory Long Term Care InsuranceYou know when the powers-that-be on Capitol Hill start seeing the effects of financial strain in their own lives from long-term care service needs, research is done and laws are made. We have now seen the beginning of the research being done.

In a recent Forbes article from December 3, 2015, we learned that The Urban Institute and Milliman, Inc., a research group and actuarial firm, respectively, led the charge on developing complex statistical models to answer the questions about future long-term  care insurance in the US.

According to the article, the average cost for a typical male and typical female requiring long-term care services is 91,000 and 182,000 respectively. Considering under 8% of people in the US actually buy long-term care insurance and either pay the costs out of pocket or fall back on welfare and Medicaid services, decision makers are going to take action like they have with the Affordable Care Act.

Medicaid cannot continue to cover the costs of long-term care services for the long term, which has now eclipsed $146 billion ($146,000,000,000.00).

“Most don’t understand the risk they face,” said Debra Whitman, chief public policy officer for AARP, about the large majority of Americans who do not have long-term care insurance. “Many believe mistakenly that Medicare will pay for long-term services and supports,” Whitman added.

Several options were discovered, but the most obvious one for policy makers was cited when the article said, “Mandatory programs would cost less for Medicaid. If the major aim is to reduce Medicaid costs, the comprehensive and back-end mandatory programs would be most beneficial”.

If the public or policymakers take action on the two organizations findings, that remains to be seen. The good news is, before we are forced to take policies with cut benefits or attempted one-size-fits-all coverage, we can at least get the facts about long-term care insurance and know what the current options and prices are.

This can be done quick and easy when you speak to a California Long Term Care Insurance Services specialist about your rights and options under the current programs. Long-term care insurance can be affordable when you take the time to plan your needs.

Fill out the form to gthe right of this page and contact your CLTC specialist today!


Are Canada’s Long Term Care Statistics A Predictor Of Things To Come?

Long-Term Care InsuranceAccording to the Government of Canada, long-term facility based care is not covered under the Canada Health Act, but controlled through provincial and territorial legislation. The recent shift in admissions requirements to long-term facilities based care settings reveals some shocking statistics on aging and long-term care health issue management.

In the November 23rd news article by, it was stated that, “Since 2010, when the government changed the admission criteria for long-term care, new residents have been coming to long-term care homes at a later stage in the progression of their diseases. Their health is more likely to be unstable, their health issues are more complex, and they are more physically frail.”

The article continues by outlining various statistics in the long-term care resident population. For example, there was a 29.6% increase in residents requiring monitoring for acute conditions. 62% of the residents suffered from Alzheimer’s, a 6% increase since 2010.

Assistance with “Activities of Daily Living”, which includes hygiene, toileting, and mobility rose 7.2%, 8.9%, and 11.6% respectively. 46% of residents act aggressively with 22.2% displaying signs of severe aggression related to mental health conditions such as dementia.

It really begs the question to be asked, if people were given access to facilities and services earlier, could their conditions have been managed better? Could they live with more dignity?

In the US, while there are some restrictions on long-term care facility admission, you can access more options at an earlier stage with proper planning. Access to home care benefits, assisted living, senior housing, and community-based services could help improve your quality of life as you age.

Setting a plan in place for your long-term care insurance needs will also relieve a lot of financial burden you can face during those years when the most care is required.

Consider having a talk with a long-term care specialist at California Long-Term Care Insurance Services. There is no cost or obligation, and the information you gain could protect your dignity and peace of mind in your retirement.

Get the conversation started today!


Having The Long Term Care Talk With Your Family

This year, like many others, millions of families around the US will sit down to a delicious Holiday feast, filled with laughs, stories, and family warmth. This year, when looking around the table, there are some numbers you need to think about.

1 in 9
1 in 4
2 in 3

According to the Alzheimer’s Association, 1 in 9 people age 65 and older develop Alzheimer’s. At age 85, that number jumps to almost one out of three.

Long-term care insurance can help cover the rising costs of care for people that develop Alzheimer’s and require treatment in a nursing home. Medicare does not cover this kind of health care setting. Long-term disability insurance does not cover this type of care either.

With annual care costs trending upward to $150,000 for a private room, if you don’t have a substantial nest egg set aside for long-term healthcare expenses of 2 years or more, it can ruin a family financially and emotionally.

The Society of Actuaries says that almost 1 in 4 long-term care insurance claims is from services received by people suffering from Alzheimer’s.

Industry statistics also show that nearly 2 in 3 people will require some form of long-term care assistance at age 65 and up. Maybe this year, it is time to talk openly with the family about plans to receive care when they can no longer do for themselves.

Putting a simple plan in place is easy, and getting professional guidance is no cost. The specialists at California Long Term Care Insurance Services are available to help you understand how to have “the talk” at no cost and no obligation to you.

In fact, they have put together a great report that you can get free right now that will give you great information on planning for long-term care needs, with affordable long-term care insurance options.

Fill out the short form to the right, download your guide and start “the talk”!

Shocking Discovery on as Long Term Care Insurance Industry Problem

Long Term Care Policy LapsIf you have been planning your retirement strategy, this is one way to quickly waste thousands of dollars.

According to a November 6, 2015 article, researchers have uncovered an issue that is plaguing the consumers of long-term care insurance. As you may already know, smart soon-to-be retirees help offset the massive costs of nursing homes and in-home care not covered by Medicare with long-term care insurance protection. According to Genworth, the median annual price of private room care is estimated at $91,250 – planning is just a smart thing to do unless you have hundreds of thousands of dollars in your savings for long-term care expenses.

The discovery researchers made is truly shocking… According to analysts and researchers at Boston College’s Center for Retirement Research, over 33% of policyholder’s age 65 experience a lapse in their policies before being able to access their benefits. To put that in perspective a couple age 55, purchasing an average of $165,000 of insurance would spend a combined $2,400 per year in premiums, over 10 years that is $24,000! When your policy lapses, you just lost $24,000 at age 65 as that couple.

You may already know through published statistics that people age 65 and older experience a health event that results in 70% of that population needing to access long-term care insurance and services. The sad truth is, when they did not plan their policies correctly from the start, and the time comes when the benefits are needed, they are no longer available. Not only did they lose the $24,000 the invested on premiums, they are also facing potential costs of $90,000+ per year that a vast majority of people simply do not have set aside. Long-term care service expenses can easily wipe out savings and any hope of leaving something behind for loved ones within a few short years.

Our own researches say there is hope though.

Proper planning involves a real and frank discussion about what your financial situation is, what plans you have in place to handle your affairs should you not be able to do that yourself, and making decisions prior to any health events so you have a plan in place when things take a turn for the worse. Admittedly, this may not be the most comfortable conversation to have, but when you work with a trained and caring specialist at California Long Term Care Insurance Services, you will quickly realize that your future health care needs can be handled without financial worry.

Your California Long Term Care Insurance Specialist researches the top rated companies, knows their financial standings, and can work to develop a plan that fits your goals and your budget.

Fill out the form to the right and get started today with a confidential no-cost no-obligation conversation now!


Plan And Save Your California Long Term Care Insurance!

Saving your LTC policyIn a recent article on Reuters the thought was presented that, long-term care insurance really is long term. When you buy a long-term care insurance policy, you are committing to paying premium dollars, sometimes for decades, until you access the benefits of that policy.

According to a recent study by Center for Retirement Research at Boston College, purchasers of long-term care insurance age 65 and older are letting the insurance policies lapse at a rate of over 30%! Nearly 1 in 3 people in this group who have paid out potentially thousands of dollars of insurance premiums are essentially throwing that money out the window.

So what is the reason this is happening?

The study concluded that, unfortunately, the people who need the coverage the most are the ones taking the financial hit. This segment of people are those who end up with cognitive impairments that will soon require care, or those on the lower end of income and wealth who would face the most impact from a medical financial crisis.

Having long-term care insurance is critical if you fall into the segment of population that is 70% of persons age 65 and older who will require some form of long-term care services during their lifetime. Long-term care insurance covers services received in nursing homes or through in-home care services as a coverage option. Medicare does not cover most of these services, which is a common misunderstanding among policy shoppers.

To put the potential costs you could face in a long-term care health services dilemma, per year costs of a private nursing home room could range from $70,000 up to $120,000+ depending on where you are in the country. In California, you should plan for the higher end of the cost spectrum.

If you want to have choices in your health care needs later in life, when other insurance does not cover those options, smart planning is needed to maintain your policy and dignity in long term care health and services.

What can you do about it?

Here are several steps you can take to avoid a lapse of coverage and loss of your financial premium investment.

First, when you consult with a California Long Term Care Insurance Services specialist (CLTC), ask them to make sure they find a carrier that will allow you to add a trusted friend or family member that can receive premium payment reminders. If you suffer from a cognitive impairment as your long-term care health need, you will need someone who can help maintain your policy and make decisions so it remains affordable and more importantly in force when those health expenses come due.

Second, work with your CLTC services specialist to be critical about planning the ongoing costs of your policy so that you do not find yourself making a decision you cannot afford for the long term. According to the American Association for Long-Term Care Insurance, a single 55-year-old male could expect on average an annual premium of $1,060 for $164,000 in coverage… females are a little higher at $1,390.

Third, work with your CLTC services specialist to set some decisions in place on what should happen if the insurance carrier has to take a rate increase to protect the longevity of its policyholders. These decisions could include reducing the daily benefit, or extending the elimination period (the delay in days to when a policy pays benefits).

Your CLTC services specialist can show you these decisions and how they would affect your premiums today, so you can know if you or your representative need to make them in the future what they could look like. You could also discuss reducing inflation coverage protection, or reducing the amount of time your policy pays out benefits, for example 3 years instead of 5 years.

Lastly, starting this conversation today with your CLTC services specialist is the best decision. There is no reason to delay planning, as there is never any cost or obligation to get your questions answered by a professional CLTC services specialist.

Fill out the form to the right, download your Free guide, and Start The Conversation Today!

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