Preserve your independence!
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Long Term Care insurance
will keep you in your home.
Most people prefer to receive care in their home
in the event of sickness or disability.
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The Tax Advantages of Long Term Care Insurance
There are huge tax advantages to buying a Tax Qualified Long Term Care insurance plan. Paying premiums through your business offers the most attractive scenario. Depending on the type of business (ex. C-Corp, S-Corp, partnership, etc.) a large portion of the premiums may be tax deductible. In addition, the benefits in most cases may be tax free. Also, an employer can choose specific employees to buy coverage for and deduct the premium while the employee does not take it as income. Refer to sections 105 and 106 of the IRS code for details. As far as individuals are concerned, LTC insurance is treated the same as health insurance.
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"For a couple turning 65, there is a 70% chance that one of them will need long-term care.“
- Wall Street Journal
"Over 50% of all people entering a care situation are penniless within one year.“
- Harvard University
$189 per day or $68,040 per year average cost for a nursing home stay in 2007
- MetLife Study, 2008
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Protect your assets.
Ensure your family
& your retirement are comfortable.
60% of people needing long term care are age 65 and older.
Half of all people over age sixety five
will require long term care.
More than half of those who need long-term care
use up their savings within one year.
One long term care illness could jeopardize
your retirement planning.
(costs for care are now as high as $6,400 per month in some areas)
(as of 2006)
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"For a couple turning 65, there is a 70% chance that one of them will need long-term care.“
- Wall Street Journal
"Over 50% of all people entering a care situation are penniless within one year.“
- Harvard University
$189 per day or $68,040 per year average cost for a nursing home stay in 2007
- MetLife Study, 2008
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Long Term Care insurance makes sense
for those who earn good salaries,
have accumulated assets
& have planned for a comfortable retirement. (AARP)
Households with income of at least $50,000 to $75,000
& have assets of $150,000,
might want to consider a policy.
(TheStreet.com)
**not including your house or car**
Long term care is the type of assistance
given to people who need help with Activities of Daily Living.
or who need substantial supervision due to a cognitive impairment.
L.T.C. insurance pays for
skilled, intermediate, and custodial care at home,
or in an adult day care center,
assisted living facility or nursing facility,
& for other long term care related expenses.
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Out of 100 people over age sixety five,
approximately 65 will require long term care.
The average need for care is three years.
(in some places where long term care services are totalling $6,400 per month it may cost you or your family over $230,000 for care)
30% of the 65 people who require care will receive over two years of home care.
The average person has a 5 to 2 Chance of using Long-Term Care Insurance at some point in his or her lifetime.
far more likely than the odds of using automobile liability insurance (250-1)
or fire insurance for a home (1200-1).
Nursing home care in 2003 cost an average of $181 daily for a private room or about $66,000 annually1 and can run as high as $93,000 in some states.2
Extensive 24-hour home care can cost as much as or more than a nursing home3
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1. Congressional Budget Office, Financing Long-term Care for the Elderly, April 2004
2. NY State Partnership for Long-Term Care, 2003
3. Long Term Care Planning Guide, United Seniors Health Council, 2001
4. U.S. General Accounting Office: "Where Does the Population Live and Who Care for Them," LTC: Diverse, Growing, Population Includes Millions of Americans of All Ages," January 2001
***Latest statistics by Penn State University (2006):
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