Long-term care insurance is a policy designed to cover costs associated with extended care services not covered by health insurance, Medicare, or Medicaid. These services might include assistance with activities of daily living such as bathing, dressing, and eating, or specialized care for conditions like dementia, Alzheimer’s or Parkinson’s disease.

LTCI is a good idea for many reasons, although it may not be the right fit for everyone.

LTCI can help protect your savings and assets from being depleted by long-term care costs, which can quickly add up. Policies often allow you to choose between receiving care at home, in an assisted living facility, or a nursing home which provides flexibility. LTCI means you have coverage and your loved ones won’t need to shoulder the financial or caregiving responsibilities alone, relieving the family burden. It can also provide benefits before Medicaid eligibility kicks in, offering higher quality care options.

On the other hand, LTCI premiums can be expensive, and they’re not guaranteed to stay the same over time. Further, if you never need long-term care, the money paid into the policy doesn’t get paid back to you or loved ones. Some policies also require a health screening, and pre-existing conditions may lead to denial or higher premiums. LTCI policies are often complex, and understanding the terms, conditions and exclusions can be challenging and require careful attention.

If you’re considering getting LTCI, the best time to buy is in your mid-50s to early 60s. This typically involves lower premiums and higher likelihood to qualify based on health. Waiting until you’re older, or your health declines can result in significantly higher costs, or even denial of coverage altogether.

If you are interested in LTCI be sure to consult with your estate planning attorney and your financial advisor. Your estate planning attorney can review your life circumstances and perhaps offer alternatives such as early trust planning or other strategies.

If LTCI is the right choice for you, you may work with a major insurance company or a trusted financial advisor to help find the best policy to fit your needs. If you’re still employed, some employers offer LTCI as part of their benefits package, often at discounted rates. There are even online platforms that allow you to compare policies and premiums to select the right policy.

By understanding the ins and outs of long-term care insurance, you can make informed decisions that align with your financial and personal needs. Start exploring options early to secure the most favorable terms and ensure you’re prepared for whatever the future holds.

The post Is Long-Term Care Insurance Right for You? appeared first on Desert Law Group | Kimberly T. Lee.

Premiums could range from $1,000 to $3,000 a year. But that may still be less expensive than paying your own way at a nursing home or other facility.

Still, there are some strategies to reduce the costs of those premiums. The most important factor is to buy your policy when you’re younger.

Another thing, and this may be obvious, is that you should buy your policy while you are in good health. Health history can affect premiums by as high as 150 percent. And if you have a serious medical condition, you may not find coverage at all.

You may be able to get a discount if you and your spouse are applying at the same time. The discounts can range from 10 percent to 35 percent a year. Siblings applying together may also receive discounts, and, in some cases, so can long-term committed couples.

You should also check with your accountant as to the deductibility of the premiums as medical expenses on your income tax returns.

You may be able to save some money by paying your premium annually rather than monthly.

And finally, you may be able to design your benefits so that your premiums are lower if the waiting period is longer.

While the premium for long term care insurance is expensive, there are strategies to hopefully help lower those costs.

The post Strategies to Lower the Cost of Long Term Care Insurance appeared first on Desert Law Group | Kimberly T. Lee.

The costs of long-term-care can be astronomical and would quickly wipe out one’s savings.  Many boomers are looking to buy long-term-care insurance to cover that risk. But many are finding out that they didn’t really understand what they had purchased.

According to an article in the Seattle Times, when it comes to buying long term care insurance, it’s best that you do your homework. If you would like a copy of our “Guide to Purchase Long-Term-Care Insurance,” please let me know.

(Photo credit: cseeman)

Estimates are that 9 million Americans now aged 65 or older will need some care over an extended period. And the average cost of a private room in a nursing home is about $84,000 a year and often as much as $120,000 in some areas. Assisted living can cost about half of that much. And in home care can cost about $20 an hour or more.

According to the article, a lot of people who purchased the policies are having a difficult time getting their benefits. And, in many cases, the policyholders are too old or ill to take on the task of fighting the insurance companies’ denial of claims.

Still, the article recommends long-term-care insurance but only from a reputable company. It’s important that you work with a qualified long-term-care professional to help you understand the finer details of various policies and your options. If you have an existing policy, it’s important to understand what it covers and doesn’t, before you need it. Please call our office if you would like a recommendation of a professional advisor to assist you.

The post Beware When Shopping for Long-Term-Care Insurance appeared first on Desert Law Group | Kimberly T. Lee.