Summary: Taking advantage of some simple strategies can reduce the cost of long-term care insurance protection. A few key tips are shared by the American Association for Long-Term Care Insurance.
November is Long-Term Care Planning Month recognized by Congress as a time for increased awareness and planning. Experts share that women who are single, divorced, or widowed as well as millions of small business owners can especially benefit from some little-known planning strategies.
“Women face the greater risk of needing long-term care simply because they live a long life. Unfortunately, too few women are aware of when to start planning and ways to make long-term care insurance more affordable,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance. “Millions of small business owners are also not aware that the cost of protection may be completely tax deductible.”
Long-Term Care Planning Tips For Women
When you live a long life, the chances of needing long-term care increases exponentially. “That’s why women, especially women living alone currently or those worried about the future, must plan,” recommends Slome. “Two thirds of all long-term care insurance claims are from women. The majority of these pay for care received in their own home, though some does pay for care in a skilled nursing home.”
The ideal age to start planning is your 50s Slome advises. “That’s generally when you have the most options available and when a good, basic long-term care insurance for a single woman can cost around $150-to-$175 per month.”
Slome recommends valuable planning strategies for women on their own. “Focus more on home care benefits than those that pay for care in a skilled nursing facility,” the long-term care insurance expert suggests. “Look for a policy that provides 100 percent of the benefit value for care in your home. Also, one that waives the elimination period for qualifying home care needs and may even provide a partial cash benefit.”
Buy before your 2022 birthday and you’ll save between 5 and 8 percent Slome suggests. “Ask about policies that offer more than the industry-standard benefit increase option, typically 3 percent,” Slome advises. “A 1 or 2 percent future growth option can save you between 25 and 55 percent yearly.”
Business Owners May Be Able To Deduct Cost of Long-Term Care Insurance
Congress has approved legislation allowing individuals and businesses to deduct some or all of the cost of tax-qualified long-term care insurance. “Tax deductible long-term care insurance limits for individuals are announced each year by the Internal Revenue Service (IRS),” Slome reports. The 2021 maximum limit for a single individual is $5,640. The 2022 limit will be higher.
“Business owners may be able to deduct even more, up to the full cost of coverage. Tax deductibility is a key and often overlooked benefit for small businesses,” Slome declares. “The business may even be able to designate who is covered by a corporate-paid benefit.”
To find the best long-term care insurance costs and coverage Slome recommends working with a knowledgeable specialist. “Policy benefits, plan options and prices can vary significantly,” he adds. “A specialist will know which policy offers the best coverage for the lowest cost.” To learn more about options or to find a specialist contact the American Association for Long-Term Care Insurance by calling 818-597-3227or visiting their website.
About American Association for Long-Term Care Insurance
The American Association for Long-Term Care Insurance is a national organization that advocates for the importance of long-term care planning and supports insurance professionals who market both traditional and linked benefit LTC solutions. The organization established November as Long-Term Care Awareness Month to focus attention and create heightened awareness. Jesse Slome is director as well as head of the American Association for Medicare Supplement Insurance. The organization connects consumers with local Medicare insurance agents.