Some topics are difficult to discuss.  The cost of long term care (LTC) is certainly one of them.  We encourage you to take a moment and contemplate the information in this important post.

Elder care myth #1:  Medicare will pay for the cost of my long-term care.

Reality:  Medicare does NOT pay for long-term care.  The United States has no health insurance for long  term care.

Elder care myth #2:   Long-term care is not that expensive.

Reality:  Long-term care is expensive, with the average annual cost approaching $100,000.

Elder care myth #3:  You are not responsible for the cost of your spouse’s long-term care.

Reality: You are responsible for the cost of your spouse’s care.

The reality is that long-term care requires planning.  One option to consider is long-term care insurance.  Most LTC policies are “tax qualified”, meaning they are eligible, subject to limitations, for certain tax benefits For example, benefits received under a qualified LTC policy up to a certain per day limit are not considered taxable income and part or all of the LTC insurance premiums are tax deductible (the amount of dedutibility depends on your age).

Traditional and newer hybrid LTC policies offer many options for you to consider:

  • How much time passes before benefits start?
  • What are the amount of benefits provided per time period?
  • How long do the benefits last?
  • What is the total benefit available for me to use?

While it is never too late to plan, the options available to those who plan ahead exceed the choices available to those who wait.

We look forward to speaking to you about this important  topic.  Call your SWP adviser today to set up a time to discuss planning for your long-term care.