Planning for a future change in your health is important!
Long ago Mark Twain stated — when looking to the future:
"Plan for the future because that's where you are going to spend the rest of your life".
His words are very insightful and encourage us — to take time today to think about:
> how we want to live & where in the future
> what lifestyle would you like if a change in health were to happen
OK — most people don't plan — then need assistance, as in picture, when their health changes!
Why don't people plan? There is no single answer — It is a part of human nature Some think I'm:
● "invulnerable" so — "I won't need assistance".
● busy with work & life. — I'll take action later!
However, "when later comes" which it will — everyone faces two problems:
˃ First — The cost to buy goes up for each year they wait.
e.g. it's 33% higher if you wait to 55 vs buying at 50!
e.g, if you are 60, the cost is 60% higher vs when 55.
˃ Second — no one knows if their health will change — if it does the chance is very high they may not qualify!
Some say if I pay for a plan a long time — I may never get my money's worth! — Lets look at this!
● Buying "insurance to protect your income & savings":
˃ Is not the same as putting money in an investment and — hoping to get more back.
˃ Gives you a guarantee the benefit amount you selected will grow & be there so you can hire assistance — no hope is involved!
Let's look at — "not get money back":
˃ Person at 55 buys a four year benefit then needs assistance say at 80. What they paid over 25 years could come back in benefits in close to a year!
Note: In addition, the benefit pool they bought continues to be available to pay for assistance for three more years.
What help or assistance is available from the government?
• What about MediCare?
People (66%) incorrectly believe MediCare pays for on going assistance. But it does not!
These words, from the Medicare.gov web site, tell 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."
• What about MedicAid? (Welfare)
Welfar in CT will pay for long term services & supports if and it's a Big if - a person's income is low enough to qualify.
● However, having the state of CT pay is not guaranteed The questions then become:
> will current state/federal funding, continue in the future?
> will CT's budget controls change what is covered?
● Some people think CT will alway pay and others are following advise from some source to pay for a plan so they can apply if needed.
● However, many don't want the kind of lifestyle, which comes with receiving MedicAID. They believe it means their dignity would be lost.
Note: Another thing about being on MedicAid - Connecticut's reimbursement rates for nursing facilities are very low so a facility near home may not be available.
What about a tax deduction for the cost of your assistance insurance? Are any available?
Surprise! The IRS says owning long term care insurance can have a positive affect on taxes.
Couple things. IRS regulations state::
● When you buy a qualified Long Term Care insurance plan any money received in benefits is tax free!
● Some individuals can benefit from the Long Term Care insurance age based partial deduction. Payments are deducted when completing their IRS 1040.
● On the other hand if you withdrawn dollars from investments to pay for assistance you do have to pay taxes!
Key — Buying insurance transfers the responsibility to pay — to a "Long Term Health" company !
Bottom line!
Call John C Parker today — 860.739.0005. We can talk about your situation & how the parts (options) of a Long Term Care insurance plan, which meet your budget, will work for you.
I'll get back to you if not available. You can also send a note to - Learn@JohnCParker.agency
What is involved in applying for this financial protection!
When you apply for Long Term Care insurance the process is a lengthy! The steps include:
● An extensive review of each person's medical history by answering in detail written and phone questions.
● First an initial review:
This is used to determine if a persons medical situation is OK to take the time & details needed for the extensive review.
The preliminary review asks questions about a person's medical situation & their use of medications.
● When the preliminary review is satisfactory the next step is to complete:
A formal application with the benefits ( plan part) you are interested in.
When it is submitted the lengthy process begins with some written questions, a phone interview, and perhaps other steps.
What you can gain from all this!
When a plan is approved, perhaps with a higher cost, and it's acceptable you own a Long Term Care insurance plan.
Then if a change of health happens requiring on going assistance you:
● Won't become a burden on the ones you love.
● Can hire professionals and continue to be more independent!
● Have protected your income & Savings!