by Rick Blaine » Thu Jul 20, 2006 01:47 pm
LTCI, Long Term Care Insurance, is it as expensive as some have lead the masses it is? The media, such as articles in newspapers or tv that do stories of insurance usually gets it all wrong! Yet lets examine this just a tad?
LTCI, can be expensive, yet it isn't that expensive. First you have the "Tax Qualified Plans". The difference is, to collect you'll need a medical doctor to state you'll need 90 days or more in assistance with 2 or more ADLs (activities of daily living): The things we normally do in daily living including any daily activity we perform for self-care (such as feeding ourselves, bathing, dressing, grooming), work, homemaking, and leisure. The ability or inability to perform ADLs can be used as a very practical measure of ability/disability in many disorders.
Now when you first look for plans you'll discover a wide menu of options, any one option can be very intimitating and create a feeling of confusion! I'll go into each seperately but for now lets say it is this simple. You in the end are basically buying into a "pool" of money that you can pull from if the need arises. Bigger the pool, bigger the premium. All the options you'll have to know and pick from will influence directly the pool of money. May it be the elimination period, length of benefits, inflation protector, daily or monthly amount, etc etc..
Now do drive the price down, first understand that you can deduct the a certain amount up to quidelines that the IRS allows. Then you can get a "Good Health" discount, along with Spousal discount (can range from 15% if one spouse is disaprove or 40% if both applies and are excepted), then you have family discounts, where 3 or more people some how related go on the same plan and share the pool of money. You have groups, one that is an option to member of groups such as a small business as long as 2 or more commits and qualifies for a LTC Plan.
So if one gets a 40% savings and then has the tax deduction, the plan could very well be cheap as any insurance you ever paid for! Of course depending on your age, best to buy now when and if you are young then to wait till you are in your 60's, it'll be pricey then but well worth it. Also it does greatly enhances your wealth, most people that file bankruptcy will do so over medical cost. Some States such as NY and others are expected to follow, states if you have LTC, minimul plan at that privately held, once that is ran dried or out of money and you need to go onto the Medicaid Roles you are exempt from Spend Down! That is great, and I do hope more states esp. mine follow suit!
LTCI, can be expensive, yet it isn't that expensive. First you have the "Tax Qualified Plans". The difference is, to collect you'll need a medical doctor to state you'll need 90 days or more in assistance with 2 or more ADLs (activities of daily living): The things we normally do in daily living including any daily activity we perform for self-care (such as feeding ourselves, bathing, dressing, grooming), work, homemaking, and leisure. The ability or inability to perform ADLs can be used as a very practical measure of ability/disability in many disorders.
Now when you first look for plans you'll discover a wide menu of options, any one option can be very intimitating and create a feeling of confusion! I'll go into each seperately but for now lets say it is this simple. You in the end are basically buying into a "pool" of money that you can pull from if the need arises. Bigger the pool, bigger the premium. All the options you'll have to know and pick from will influence directly the pool of money. May it be the elimination period, length of benefits, inflation protector, daily or monthly amount, etc etc..
Now do drive the price down, first understand that you can deduct the a certain amount up to quidelines that the IRS allows. Then you can get a "Good Health" discount, along with Spousal discount (can range from 15% if one spouse is disaprove or 40% if both applies and are excepted), then you have family discounts, where 3 or more people some how related go on the same plan and share the pool of money. You have groups, one that is an option to member of groups such as a small business as long as 2 or more commits and qualifies for a LTC Plan.
So if one gets a 40% savings and then has the tax deduction, the plan could very well be cheap as any insurance you ever paid for! Of course depending on your age, best to buy now when and if you are young then to wait till you are in your 60's, it'll be pricey then but well worth it. Also it does greatly enhances your wealth, most people that file bankruptcy will do so over medical cost. Some States such as NY and others are expected to follow, states if you have LTC, minimul plan at that privately held, once that is ran dried or out of money and you need to go onto the Medicaid Roles you are exempt from Spend Down! That is great, and I do hope more states esp. mine follow suit!
Posted: Sat Mar 24, 2012 05:18 am Post Subject: Long Term Care Insurance
Long term care insurance can be confusing, no matter who you are, especially if you don't know who to turn to for expert advice.
For more details please refer [Link removed as per TOU]
Add your comment