Use a Long-Term Care Policy Instead of Retirement Savings

long term care policy

Worried about having to use your retirement savings to cover expenses for a nursing home or at-home care?  Consider a long-term care (LTC) policy.  It’s an unfortunate fact that many healthcare plans (including Medicare) don’t cover extended stays in nursing homes or long-term care at home.  That’s where LTC policies come in to make it possible for long-term assistance.

Long-term care policies help with needs such as assisted living, at-home care, living in a nursing home, modifying a home for safer living conditions, even working with a professional to determine what kind of care is needed.

When you look into LTC policies, think through some of the important factors listed below:

  • Your Budget:  Can you afford bills today?  Will you be able to afford bills in the coming years?  LTC policies can be expensive, but prices differ depending on your situation and the insurer you choose to work with.
  • Your Health:  Your age and well-being can affect costs and eligibility.
  • Your Taxes:  Generally, the benefits paid by LTC policies are excludable from income; they are based on a per diem or a reimbursement basis.  LTC insurance premiums qualify as medical deductions subject to limitations based upon your age.
  • Your Family & Friends:  Do you have friends and/or family who are willing to assist you so you don’t have to pay for outside help?

For more details on the factors listed above and for more options, read the full article in the Knowledge Center.

Consult with your Money Coach to talk about the pros and cons of your situation.  They can help with virtually any financial topic including how to fit a long-term care policy in your budget and what to consider about your long-term care policy when tax season comes around.  Call your Money Coach at 888-724-2326.