Top 6 Benefits of Long-Term Care Insurance Planning

As healthcare costs continue to rise, health insurance providers are offering more plans that extend your coverage for a long period. One such plan is called long-term care insurance or LTCI plan. It offers a variety of benefits for you if you need long-term care. Here are the top six benefits of a long-term care plan.

1. In-Home Care

If you need traditional long-term care insurance, your family can contact the best insurance company they can find. Unfortunately, many people have to choose between getting the care they need and paying for necessities. If you ever require 24-hour assistance, a long-term care plan can offer the help you need. You will still have independence because most plans allow you to hire caregivers who work through an agency or directly with the provider.

2. Tax Benefits

Traditional long-term care insurance is tax deferred, meaning you only pay taxes on the funds after you withdraw them. This is better than subjecting a certain percentage of your funds to yearly taxes, like most other insurance policies do. Also, some states’ long-term care policies are eligible for a tax credit.

3. Estate Planning

Many people prefer to have assets distributed to their loved ones after their death instead of paying for their long-term care expenses in the future. You can leave some of your assets to a long-term care policy to help pay for your care. In some cases, you can appoint a beneficiary and nominee to handle the funds when you cannot do so yourself.

4. Protection From Medical Bills

Medical bills, especially those related to long-term care, can quickly increase over time. Long-term care insurance covers you against these expenses, meaning you won’t have to worry about paying all your medical bills in the future. Your family can also use your policy to cover the costs of long-term care services.

5. Protection From Estate Taxes

You may have no problem leaving most of your assets to your spouse or loved ones. If you do, though, there’s a way to protect them. With most long-term care policies, you can specify that the provider holds the insurance for you until your death, which will help prevent estate tax bills for those left behind. This feature also depends on your state’s laws, so check with your insurance provider before signing up.

6. Peace of Mind

As long as you have a policy that provides the level of care you need, you can relax, knowing that your family will have help if and when the time comes for long-term care. You also won’t have to worry about budgeting for this type of care in your retirement years.

Contact the Experts

Long-term care insurance plans cover unexpected healthcare expenses incurred during extended periods. They help families pay for long-term care services, including home health aides, nursing homes, and adult day care facilities. Contact the Center for Long-Term Care Planning today if you are looking for the best care insurance company. We will explain the benefits of our insurance policies and answer any questions you have.