How does LTC insurance work?
If you or a loved one turns out to need long-term care, you don’t want to see a big chunk of hard-earned savings go down the drain to pay for it.
A long-term care (LTC) insurance policy can help. As a bonus, qualified LTC policies deliver some tax breaks. Here’s what you need to know:
How does LTC insurance work?
Benefits paid under an LTC policy are usually stated as daily maximums, typically ranging from $50 to $500. You choose the benefit level appropriate for your needs, and you are reimbursed up to the amount chosen. An LTC policy with a monthly benefit reimburses you for a stated amount per month, regardless of how many days you receive care or the cost for those days.
You can buy an LTC policy with or without automatic annual inflation adjustments to your benefit maximums. Usually, the annual inflation-adjustment rate is 3% to 5%, and that rate can be compounded annually or not. Choosing a 5% compounded inflation-adjustment feature is more expensive.
While lower benefits naturally translate into lower premiums, don’t get carried away with cost savings because long-term care can be expensive.
If you would like more info or a one on one conversation, please contact me from the links below.
Please contact me from the info below!
Vincent De Santis, CLTC
Long Term Care Planning Specialist
NY State Partnership Certified
http://www.ltcsolutionsbyvince.com
http://www.linkedin.com/in/vincedesantis
DeSantis.puravida@gmail.com
