Planning for a change in your health!

Advice from long ago is important today!

Mark Twain once stated: 

      "Plan for the future because that's where you are going to spend the rest of your life". 


These words are very important today! They stress the need to think about your future lifestyle!

OK - why don't most people plan for needing assistance?

   They are over confident - "I won't need assistance" and also think  - "I'm invulnerable".


   They are busy with other things and think - Oh I can take action later. But " when later comes":   

        ˃  The cost to buy has gone up for each year of age.  Costs are 60% higher at age 60 vs 55. 


        ˃   They may not qualify because of a change in health!

OK - if I pay for a plan over a long time I may never get my money's worth?

   Buying "insurance to protect income and savings" from having to pay big assistance bills is not the same as putting money in an investment and hoping to get more back. Buying insurance instead -  gives you a guarantee your benefit amount will be there to pay for assistance. There is no hope involved!


   Lets say a 55 year old buys a plan with a four year benefit and needs help at age 80. What they paid over this 25 year period could come back in benefits in just 7 1/2 months! (227 days) 

What assistance is available from government programs?

People (66%) incorrectly believe MediCare pays for on going assistance. But it does not! This quote from the What is Not Covered page on the Medicare.gov web site tells us: [I added bold]


     "Medicare Part A (Hospital Insurance) helps cover inpatient care in hospitals, including critical access hospitals, and skilled nursing facilities (not custodial or long-term care). It also helps cover hospice care and some home health care."

 

MedicAid (welfare) is the government coverage, which can pay for long term services if - a person is indigent. The question to think about is - will the state/federal funding, which is not guaranteed, continue to be available in the future? 

 Some people think it will so they plan to wait and apply if needed.


● Many however don't want to be in the kind of lifestyle, which comes when receiving MedicAID. They believe their dignity would be lost.

 

      Note: In Connecticut MedicAID's reimbursement rates are very low so only certain nursing homes are available.


Surprise! The IRS can help!

Owning long term care insurance can have a positive affect on taxes. How?

● The IRS has ruled the money received in benefits from a qualified long term care insurance plan is tax free! On the other hand taxes have to paid on any dollars withdrawn from investments to pay for assistance!

 

● In addition: Some individuals can benefit from the Long Term Care insurance age based partial deduction. Payments are deducted when completing their IRS 1040.

When is a good time to buy?

AALTCI created a 7 minute video with points on the wrong & right questions to ask when talking about this special kind of insurance and when to buy!

Bottom line!

Call John C Parker today - 860.739.0005 to discuss  developing a plan to take care of the ones you love. Buying means you transfer the responsibility to pay for any needed assistance to a Long Term "Health"  insurance plan. I'll get back to you if not available.