Monthly Archives: February 2015

WHAT REALLY ARE THE ODDS? 

Long Term Care, , , ,

It’s easy to make statistics hide the truth.  What really are the odds that a person will experience a long term care scenario?  In addition, at what point does care become “long term”…after three months?  After 6 months? Many say after 3 months.  Others might think after 6 months, but you can be the judge.

 

The U.S. Government says that people age 65 and older have a 70% chance of needing long term care at some point.  Therefore, at least 30 % will not need long term care.  In addition, at least 15 % will need care for less than a year.

 

You can infer from this that at least 55 % of people age 65 and older will need “long term” care at some point, even if you use the 6 month qualifier.  That’s a huge percentage.  For a couple, the odds rise further: over 70% chance that at least one of the spouses will need “long term” care.  That’s why it’s so important to have a long term care plan.

PRESS SUPPORTIVE OF LONG TERM CARE INSURANCE

Long Term Care, , ,
   

Just ask anyone that has been through it…….Your health can change in an instant.  If your recovery takes many months, or if you  will be needing care indefinitely, your long term care policy will be worth its weight in gold.  The good news is that more and more families are seeing the value in discussing care giving issues sooner than later.  Click on the link below to see an excellent article strongly supporting the purchase of long term care insurance.

USA Today 9-10-2014 Do Retirees Need LTC

Financial advisors and insurance agents are now increasingly wiser for their clients’ experiences. I know I am! They understand that a retirement stream of income can disappear due to a long term care scenario.  They understand that most people get sick and need care when they grow old and this places an enormous burden on their loved ones.  They know that insurance companies pay billions of dollars per year in claims. They understand the need.

People now understand that they could live into their eighties and nineties.  People are more and more worried about paying for health care during these years.  They increasingly understand the need to transfer some or all of this risk to an insurance company.

Combination Policies Provide A Guaranteed Death Benefit To Beneficiaries If Long Term Care Is Not Needed

Long Term Care, , , ,

As long term care policies become more expensive, and harder to qualify for, our clients are asking us to explore alternative long term care planning options.

An often overlooked solution is a combination Long Term Care/Life Policy.

Here are some policy highlights:

  • Both spouses can be covered under one policy
  • Long term care benefits include home care, assisted living, nursing home/Alzheimer’s
  • Unused long term care benefits go to heirs in a tax free death benefit
  • Premiums are guaranteed
  • Long term care benefits are tax free

IRS ISSUES LONG TERM CARE PREMIUM DEDUCTIBILITY LIMITS

Long Term Care, , , , , , ,

The Internal Revenue Services is increasing the amount taxpayers can deduct from their 2015 taxes as a result of buying Long Term Care Insurance.

Premiums for “qualified” long term care insurance policies are tax deductible to the extent that they, along with other unreimbursed medical expenses, exceed 10 percent (7.5% for those age 65 or older) of the insured’s adjusted gross income.However, there is a limit on how large a premium can be deducted, depending on the age of the taxpayer at the end of the year:

At the end of the year 2014 2015
Ages 40 or less $ 370 $ 380
Ages 41 to 50 $ 700 $ 710
Ages 51 to 60 $ 1,400 $ 1,430
Ages 61 to 70 $ 3,720 $ 3,800
Ages 71 or more $ 4,660 $ 4,750

There are more liberal rules for the self-employed, partnerships and corporations. Please give us a call for a further explanation if this applies to you.