Reasons to Buy Long Term Care Insurance

 

Protect Assets - Long Term Care services in a nursing home care can cost as much as $75,000. Home Health Care services can cost as much as $19 an hour (1.). Long Term Care insurance can protect your assets by paying these high costs ultimately allow you to pass your assets onto your heirs.

 

Preserve Independence - Comprehensive Long Term Care Insurance policies give you choice and your independence, by allowing you to receive care in your home or an Assisted Living facility, so you don't have to go to a nursing home unless needed.

 

Avoid Being a Burden - As stated in the Caregivers Role section in this website, most care provided in the US is provided by a loved one. Long Term Care Insurance can protect you from having to rely on a loved one for care. With Long Term Care insurance, most policies will pay for a home health care aide.

 

Avoid Going on Medicaid - Even if you are not in a low income bracket and you don't want to deplete all your assets on Long Term Care services you will have to spend down your assets to qualify for Medicaid. See About Medicaid for more information.

 

Tax Advantages - Many states offer a tax deduction or special tax credit for purchasing Long Term Care insurance. In addition, Tax-Qualified policies allow your premiums to be added to your other medical expense deductibles, and then deducted from the amount which is more than 7.5 percent of the adjusted gross income on the federal income tax return. See Tax Information for more information.

 

Medicare Won't Pay Fully - You cannot rely on Medicare to pay for your Long Term Care needs, Medicare only provides skilled care, and most LTC is not skilled care. See About Medicare for more information.

1. The MetLife Mature Market Survey of Nursing Home and Home Care Costs, 2006