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Long Term Care Insurance

435 Financial INC.

At 435 Financial, we take a holistic approach to planning for your future. We are here to help you build your legacy. We assist clients in identifying and coordinating goals for work, life, retirement and develop a comprehensive strategy to work toward managing those goals. From a holistic standpoint, we can take the confusion out of financial planning and clarify what your options and opportunities realistically are. We create a customized financial plan tailored to fit each client’s unique needs. Is long-term care insurance part of your portfolio? It should be. Give us a call to find out how long-term care insurance can benefit you.


What is Long Term Care Insurance?

Long Term Care Insurance or LTC/LTCI is a type of insurance that assists individuals in paying for costs associated with long-term care. Generally speaking, the costs covered by long-term care insurance are not covered by the individual’s health insurance, Medicare, or Medicaid. People who require long-term care are usually not considered to be ill in a traditional manner; however, they typically cannot thoroughly perform two out of six of what is referred to as activities of daily living (ADLs) on their own. ADLs are dressing, bathing, eating, toileting, continence, transferring, and walking. An individual’s age does not determine a need for long-term care. However, many people over the age of 65 eventually require some kind of long-term care in their lifetime.


Long Term Care Planning

Long-term care can cover costs for things like home care, assisted living facilities, adult day care, respite care, hospice care, nursing homes, specialty facilities, and home modifications. If coverage includes home care, long-term care insurance can pay for various home care needs, many times from the first day that the care is needed. It can pay for a caregiver, either live-in or visiting, a companion, a housekeeper, a therapist, or even a private duty nurse for up to seven days a week depending on the policy benefit maximum.


Long Term Care Planning Essentials

Many people in the United States do not feel comfortable relying on their families, especially children, for long-term care support. Long-term care insurance can help cover otherwise out of pocket expenses. If an individual does not have coverage, the cost of services could quickly eat away your assets and begin chipping away at the savings accounts of your loved ones.


Cost of Long-Term Care Insurance

The cost of long-term care insurance differs widely by region in the United States. Premiums that are paid on long-term care insurance are often eligible for tax deductions. The amount of these tax deductions depends on the age of the person insured. Benefits paid from long-term care are usually not included in the individual’s income. We can help you find the right coverage for you at a cost that does not sacrifice your budget. However, a better thing to consider is what it would cost you if you do not have coverage rather than what it costs to obtain coverage, which is significantly less.


Do I need Long Term Care Insurance?

The short answer is absolute. Long-term care is necessary since many people live longer and eventually need some assistance with everyday living tasks. Nearly half of the population aged 65 and older end up needing long-term care. Therefore long-term care insurance is a smart way to protect yourself against these costly expenses. Men and women both need long-term care insurance, but women especially need it. Women tend to live longer than men and end up being caregivers themselves for several years before needing care themselves. It is not technically an investment, as there is no return on long-term care insurance, but you are putting yourself in a position to be well taken care of should the need arise. Assuming you’re still in good health and eligible for coverage, most people should begin shopping for long-term care insurance between the ages of 60 and 65. It is essential to be prepared for the future! Long-term-care insurance prepares you for a time when you might need ongoing health care. Prepare for that expense by making a plan now. We can help - call us!


This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company.  You may also visit your state’s insurance department for more information