Category Archives: Financial Planner Long-Term Care

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.

Long Term Care Premiums Tax Deductions

There are advantages that you might be eligible for with a Long Term Care Insurance policy.

• Do you own a business?
• Are you aware of the potential Long Term Care tax advantages of owning a business?

You might be interested in a Quick Reference Guide that gives a summary of Long Term Care premium tax treatment for different types of business entities.

Contact us for details

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.