When planning for future long-term care costs, we know you have questions about your options. To help you, below are answers to frequently asked questions. Know that we’re always here to answer your questions – by phone, or email.
Long-term care insurance pays for long-term services, including custodial care. Health insurance and Medicare do not pay for this type of care. You can receive care in your home, an assisted living facility or nursing home. Long-term care insurance protects your savings from the high cost of long-term services. It also protects your family from the burden of caregiving. Learn more >
There are many plan options and highly rated insurance companies available. The best plan is from a highly rated insurance company with the right set of benefits for your needs. A Long-Term Care Advisor can offer professional guidance on the best company and strategy for your situation. Click here to get recommendations >
Consider these two scenarios where someone invests $100,000 to cover future long-term care needs:
Option 1) Invest $100,000 with a 7% annual interest rate over 20 years. Capital will grow to approximately $387,000, providing about 1.8 years of care in 2044. Consider that the gains may also be taxable.
Option 2) Invest $100,000 into an LTC annuity with a 4% annual interest rate for the same length of time. In 20 years the policy will provide $454,938 of tax-free long-term care benefits, equal to about 6 years of care. If you never need care, your estate would receive $139,009 as a tax-free death benefit when you pass. (OneAmerica Indexed Annuity Care – Male, Age 60, AZ )
For most people, long-term care insurance is affordable. However, several factors impact the cost of a policy, including your age, health, and policy design. Annual premiums are typically much less than paying for one month of long-term care services out of your pocket.
Below are the average monthly costs of long-term care insurance by purchase age for $165,000 in level benefits, without annual inflation growth. These rates are based on select health rather than preferred health which has the lowest cost.
Cost of Long-Term Care Insurance by Age | |||
| Age 55 | Age 60 | Age 65 | |
| Male | $79 | $98 | $142 |
| Female | $125 | $158 | $225 |
| Couple | $173 | $217 | $313 |
For the same applicants purchasing a policy with 3% annual inflation growth protection, the average monthly costs are:
| Age 55 | Age 60 | Age 65 | |
| Male | $185 | $294 | $261 |
| Female | $308 | $358 | $439 |
| Couple | $419 | $483 | $596 |
Several plan options are available and a Long-Term Care Advisor can make recommendations based on your situation. The types of plans available include:
Your health status and age determines your eligibility for long-term care insurance. But even people with significant health conditions may still qualify. Conditions like Alzheimer’s, Parkinson’s, or currently needing care could disqualify you. Short-term care insurance may be a good option for those at older ages or with certain health issues. Find out if you qualify >
Different from health insurance, long-term care insurance is designed to pay for long-term services, including custodial care. The care can be provided in your home, an assisted living facility or nursing home. You select a long-term care insurance policy value such as $250,000, $500,000 or a $1,000,000. Learn more >
Your best source is from a Long-Term Care Advisor with substantial experience in LTC insurance underwriting, policy design, and claims. A licensed professional who represents several companies can find you the best coverage at the best value.
Some people turn to their financial advisor for long-term health care planning, but this is not their core competency. Many only work with one or two companies and have limited experience with the features and benefits of these products. Also, most have never filed a long-term care claim and don’t understand the process. As a result, many financial advisors partner with us to ensure their clients get the best service. Compare coverage options >
A hybrid long-term care insurance policy combines the benefits of traditional long-term care insurance with either life insurance, or an annuity. If the policy is not used for long-term care needs, it provides a partial or full death benefit to your loved ones. Premiums are guaranteed to never increase with some plans. Learn more >
Few people like buying insurance, but the alternatives are often less attractive.
Long-term care is the assistance needed when a person is unable to manage their own personal care needs or when they need help with daily activities (walking, bathing, continence, dressing, eating, toileting and transferring). This type of care is known as Custodial Care and is not covered by Medicare. Learn more >
According to the U.S. Department of Health and Human Services, those turning age 65 today have about a 70 percent chance of needing some type of long-term care in their lifetime.
On average, women need care for 3.7 years and men for 2.2 years. Overall the average length of time people need long-term care services is 3 years. Learn more >
The national median cost for a private room in a nursing home is over $108,000 per year. These costs continue to rise due to inflation and the pressures of supply and demand. Consider that every day until 2030, 10,000 Baby Boomers will turn 65 and seven out of ten of them will need long-term care services at some point. See nursing home cost by state >
Yes, long-term care insurance premiums are tax deductible under current law. For self-employed business owners, eligible long-term care premiums may be 100% tax deductible when the business purchases long-term care insurance policies for the owner, spouse or dependents. Learn more >
Yes, group long-term care insurance premiums can be 100% tax deductible for C-Corporations. It can also be partially deductible for other types of corporations. The employer can also buy coverage for key employees and family members. Learn more >
Many states are looking at taxing your wages unless you own a qualified long-term care insurance policy. This follows Washington State that recently implemented a long-term care tax for those who don’t own private long-term care insurance. Learn more >