Is Long-Term Care Insurance Right For You? Part II
So, last week we looked at aspects of long-term care insurance that could help you decide whether or not it’s right for you. This week let’s take a peek at what long-term care insurance might potentially cover as well as some additional benefits.
First, and foremost, you’ll want to read through your plan carefully to determine if your policy covers the types of communities, programs, and services that are available in your area. Obviously, every policy is going to be different, but most long-term care policies cover the following:
- Care Coordination
- Home Modifications
- Home Care
- Adult Day Care
- Assisted Living Communities
- Skilled Nursing Facilities
So, in addition to the above, here are some of the benefits that you might derive from a LTC policy:
- Increased ability to age in place - if your LTC policy pays for home modifications you very well might be able to stay in your home for a longer period of time.
- Tax benefits - according to the IRS, LTC insurance is treated like health insurance in that monies received for care are generally excluded from income and premiums may be tax deductible. As always, check with your accountant as tax laws have a way of changing.
- Increased ability to pay for quality care - like a lot of things in life, you probably won’t know if you’ll need long-term care until you need it. By having a LTC policy, you’ll know that, if you need it, you’ll be able to afford care should it become necessary.
- Peace of mind - just like any other insurance policy, just knowing that you have it provides invaluable peace of mind. You (and your loved ones) will know that the job of caregiver will not fall on their shoulders.
The decision to purchase a LTC policy is a very personal one. There’s not a right answer for everyone because no two situations are the same and none of us have a crystal ball - at least I don’t!