Using long-term care insurance and planning for incapacity. Long-term care insurance, available through private salesmen or through union and employment sources can be an essential planning consideration in advance of incapacity. There are three main types of coverage available in long-term care insurance – home healthcare insurance, assisted living care insurance and skilled nursing care insurance. The cost of medically necessary skilled intermediate and custodial care nursing, home residency will be covered if policy considerations are met. This may be crucial to affording care if you are not eligible for Medicaid as the average cost of skilled nursing care, currently in New Port Richey, Florida, is approximately $7,000.00 per month.
In-home care – the cost of a doctor prescribed home healthcare aide furnished by a home healthcare agency will be covered if policy conditions are met in the right circumstances. This may be crucial to some, as without coverage, the average cost of a home healthcare aide in New Port Richey, Florida is approximately $100.00 per day.
Assisted living care insurance – the cost of assisted living care insurance are increasingly covered by modern policies. Some policies are equating assisted living care coverage with home healthcare coverage for insurance policies and either one of them will be covered under the benefits of your policy if you have home healthcare insurance. The average cost of the assisted living care facility for a monthly basis in New Port Richey, Florida currently is approximately $2,000.00 per month.
There are some considerations that you need to make prior to purchasing long-term care insurance. The younger the purchaser, the less expensive the policy premium is going to be. For the desired coverage, it is recommended that a person at age 75 would pay approximately $5,000.00 to $6,000.00 per year in premiums for long-term care insurance. Additionally, another benefit is a tax deduction that you may make when you file your income taxes. The tax deduction that you may make would need to be for an itemized tax return for long-term care insurance, but the premium must be at least or more than seven percent (7%) of your adjusted gross income.
Also, very few companies will write policies for people who are over the age of 82 years old. To be very honest, most insurance companies won’t write them at all. That’s why it’s very important to take these considerations into your estate planning when you’re at age 70 and older. As you get older, as I stated it’s increasingly difficult to get this sort of insurance coverage.
Most important to consider in planning for long-term care insurance is the quality of your insurer. Dealing with the fly-by-night insurance company may save you costs in the interim, but it will surely mean more grief when the time is come to collect the benefits that you crucially need at that time. Most important to consider is the stability of the company, it’s management skills, it’s payment history, and the investor practices of the specific company.
These are the most important evaluations to consider with long-term care insurance. If you have any questions or need assistance in involving incapacity of your loved one, please give me a call here at Waller and Mitchell at 727-847-2288.