Long Term Care Insurance Gives More Benefits To Your Retirement Planning
We all like to stay carefree. But there is a catch here. Only when you have everything planned out carefully can you manage to be so. Thus, essentially being careful is a pre-requisite to being carefree. Well the point that we are trying to make here is that in our youth, when we are at pinnacle of our career, retirement planning is the last thing on our minds. But only those who tread carefully at such a time will be carefree and have the freedom to age gracefully and independently. To do this you have long term care insurance.
Unlike other insurances dealing with health and life, this one distinguishes itself by providing assistance not necessarily in some catastrophic situation but helps you cope with your basic routine. It has listed out some activities of daily living (ADLs) which are as simple as eating, going to the bathroom, walking etc. As you grow older, these are the things which you need maximum help with. Even though you may not be suffering from any disease in particular and do not require hospitalization as such, a simple bed rest and care may be recommended in your older days. In such a situation, you can’t claim health insurance as you are not sick literally. But to pay for a caretaker, you can avail your long term care insurance.
It is not necessary that hardships in activities of daily living emerge only with age. Many people less than the age of 65, who were struck down with a medical problem, became dependent on a caretaker, which their long term care insurance now pays for.
The premiums which you pay for your long-term care insurance will mostly be accounted for during income tax deduction. How much is deducted though is variable and is based on the age of the person. But the benefits that your long term insurance pays you needn’t be shown as part of your income.
Actually, depending on whether the benefits offered are taxable or not, there are two types of long term insurance policies; tax qualified or non-tax qualified. Naturally the tax-qualified in which the benefits are not taxed is the more preferred and popular across America.
The rates of long term care insurance are variable and have some deciding factors:
1. Age of the person – It must be kept in mind that to get long term care, insurance gets costlier the later you purchase it. So, at the age of 65, if you desire to get insurance, it will be more expensive than if you had got it when you were younger because your coverage costs increase substantially.
2. Amount of the benefit (daily/monthly) – More the benefit sought, more will the premium be.
3. The duration time for benefits paying – Again simply, more the time you want your insurance to support you, more the payment would have to be paid as premium.
4. The elimination period – The long term care insurance will pay your benefits after you have paid for your care a certain amount of time on your own. This period can be as long as 120 days or just 20 days but varies with each insurer. It is also called a waiting period or a deductible. Shorter this period, more the premium one will have to pay.
So plan well and go ahead into the future without a worry. Take care!
Visit http://www.annuitycampus.com for more Annuity and Life Insurance Tips and Tricks. Call Robert Eldridge directly at 800-643-7544. Robert Eldridge holds over a decade of experience as a multiline agent in multiple states and currently serves on the membership council of the National Association of Insurance and Financial Advisors
Filed Under: Life Insurance
