Wanna learn more about long term care insurance and other related issues? Feel free to post your questions!
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Compound Inflation
A rider where your benefits increase by a rate compounded every year. For example, if your Maximum Daily Benefit (MDB) was $100 and you had a 5% compound inflation rider, the Maximum Daily Benefit would increase by 5% per year.
Therefore in year two it would by $105, but in year three $110.25, in year four $115.76 etc. The difference between a compound and simple inflation rider is not significant in earlier years, but becomes greater as time goes on.
It is recommended that you talk to a long term care planning specialist to determine which inflation rider would be best for your individual circumstances.
Source: Long Term Care Glossary
Long Term Care Insurance Tax Deductions (Video)
Long term care insurance may be tax deductible for individuals and business owners. In this video, you will learn how to make the cost of long term care insurance protection tax deductible.
When requesting for long term care quotes, here are some of the things and details you need to submit and/or select:
1. Personal information such as your age, spouse’s age and state of residence. These are the first pieces of information that the insurance provider needs since it largely affects the premiums. You will also be asked to input your address and contact information such as phone and email. Below is an example:
2. Health condition. Medical history of the individual’s family or close relatives is also taken into consideration. Insurance providers weigh potential hereditary diseases that the individual might acquire in the future.
3. Benefit coverage period. You can choose your desired benefit coverage. Choosing a longer benefit coverage period means paying more costly monthly premiums.
4. Waiting period. Also known as elimination period, this determines how long the person has to pay for all the long term care services that he would incur before the benefits kick in. Longer waiting period means much cheaper LTCi premiums.
This is the harsh truth about Medicaid.
Seniors are required to spend down their assets in order to become eligible for Medicaid. This not only affects the person going into the nursing home, but the healthy spouse as well. This requirement leaves the healthy spouse with little to nothing to live on. Spend-downs are the biggest concern for many senior citizens.
To avoid this problem, better plan ahead. Make sure that long term care planning is part of your retirement plans.
Long Term Care Insurance Alternatives (Video)
Like most insurance, if you don’t use the long term care insurance benefit you will have wasted all that money spent on paying the premium. Moreover, the premiums are not stable but can be raised in the future.
One major company just raised my clients’ premiums 60 percent to 90 percent in one year. Another just announced a 35 percent increase over two years. Still, having coverage for long-term care is critical. If you have a large sum that you can use, a single-premium annuity-linked LTC benefit could work for you. This would provide you an annuity benefit to the extent that you do not need the LTC benefit.
If you do not have such a sum available, consider a long term care planning benefit linked to a life-insurance policy.
