Here’s Why You Should Consider Long-Term Care Insurance


grown daughter with father
What is long-term care and who may need it? Well, to start with it’s not just for “old people.” In fact, of those in need of long-term care, 37% are age 64 and younger, according to the American Association for Long-Term Care Insurance.

Long-term care refers to help with daily activities that people with disabilities or chronic, longer-lasting illnesses may need, such as help with eating, bathing and dressing. Long-term care also includes assistance for those suffering from cognitive impairments, such as Alzheimer’s disease and dementia. In addition, this type of care can be provided in a variety of settings, such as your home, an assisted living community or in a nursing home.

What you think may pay for these services—health insurance and disability insurance—typically do not.

Instead, a typical long-term care insurance policy helps cover the cost of long-term care services, including:

  • Assistance in your home with daily activities, such as bathing, dressing, meals and housekeeping services
  • Visiting nurses and/or home health aides who come to your home
  • Services available in your community, such as adult day care
  • The cost of an assisted living community
  • Nursing home care

While the good news is that people are living longer, the bad news is that increased life expectancy also increases the odds of needing long-term care services, which can be expensive.

Without long-term care insurance to help meet the cost of needed long-term care services, you run the risk of depleting a lifetime of savings. With long-term care insurance, you’re in a better financial position to make the choice of what long-term care services you receive and where you receive them.

In addition qualified long-term care insurance receives favorable income tax treatment. The benefits from qualified long-term care insurance, for the most part, are not taxable income to the recipient, up to a daily limit ($330 for 2014).

Eligible premiums paid for qualified long-term care insurance can be applied toward meeting the 7.5% “floor” for medical expense deductions on your federal income tax return. The amount of eligible long-term care premium that can be applied to the 7.5% floor depends on your age.

Because there are so many factors involved with long-term care insurance, it may seem overwhelming. But an insurance agent can sit down with you, at no cost, and help you find a policy to meet your needs and budget. If you don’t have an agent or are unsure how to select one, you can start here.

  1. Why not use white font? That would be waaay super cool.

    It’s ironic that a blog post aimed at mature people whose eye sight isn’t as good as a twenty something would use microscopic font with a near invisible light gray color that blends into the back-ground. This site really hurts my eyes. Moving on before the eye strain gets worse…Hope to find a site more friendly to my demographic.

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