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Long-Term Care Planning

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Living long with dignity is a basic human need.  Yet living longer often comes with a high emotional and financial cost without a sound financial plan.  It is surprising to learn that almost 70% of people 65 and over will need long-term care.  Most people think they will be part of the 30%.  But research shows almost 7 out of 10 people over 65 will need long-term care at some point in their lives.    

With a financial plan, you have many choices to fund your long-term care costs in retirement.  Whether you want unused benefits to pass to your heirs or you only want to cover your expenses, the professionals at Airey Financial Group can help you choose.  Use the form below to contact us or call us at 219-650-4050.  We look forward to speaking with you.

What Exactly Is Long-Term Care Insurance?

Long-term care insurance pays for medical costs typically not covered by your health insurance policy or Medicare. Older individuals or those with a chronic or disabling condition may need nursing home care or home health services. These costs can be a significant strain on your finances. With a long-term care insurance policy, you have more options and flexibility for your care.

Here are some examples of what can be covered under your long-term care insurance policy:

  • Home care
  • Adult day care
  • Assisted living expenses
  • Nursing home care
  • Professional nursing care
  • Occupational therapy
  • Rehabilitation
  • Respite or temporary care

Considering the high chance of needing long-term care and the cost associated with long-term care, it’s important to protect yourself with long-term care insurance.

Traditional Long-Term Care Insurance

A traditional long-term care insurance policy allows you to customize the coverage when you purchase it. For example, you get to choose the benefit amount of the policy, the daily or monthly benefit limit, and the initial lifetime limit. The benefits you choose determine the cost of the policy.

If you’re in good health and need affordable long-term care coverage, a traditional policy might be a suitable option for you. You can even pay for your coverage in installments versus having to make a lump-sum payment, and you can add additional protection as needed.

Asset-Based Long-Term Care Insurance

Asset-based long-term care insurance, also called hybrid or combination policies, is another way to provide for your long-term care needs. With this type of policy, your long-term care insurance is linked to an asset. This asset can be a whole life insurance policy, an annuity, money from your retirement account, or even the equity in your home. 

With a traditional policy, there’s no way to recuperate the premiums if you don’t use them. With an asset-based long-term care plan, the policy will pass to your heirs tax-free at the time of your death. You also have the option to cash out and surrender your policy. However, we don’t recommend doing this because you don’t know whether you’ll need long-term care coverage. 

A tax-qualified long-term care insurance policy also allows you to deduct the premiums on your tax return if you itemize your deductions. With asset-based long-term care policies, you typically make one lump sum payment instead of ongoing premiums. Finally, we can even add riders to your policy to make the benefits payable throughout your lifetime.

Long-Term Care Insurance Frequently Asked Questions

What Is the Average Cost of Long-Term Care Insurance in Indiana?
The cost of your long-term care policy depends on several factors, including the age of the policyholder, the maximum annual coverage, and the lifetime maximum of the policy. The average cost for a long-term care insurance policy in Indiana is between $6,000 and $8,000 a month for facility care or $5,000 to $6,000 a month for in-home care. 

Can I Receive My Care at Home?
Yes, you can. However, the long-term care insurance policy will not pay your family members to provide at home help for you. The person or company providing the in-home care services must be a licensed provider. 

Where Can I Buy Long-Term Care Insurance?
Our team at the Airey Financial Group is ready to help you with your long-term care insurance needs. We’ll make sure you can receive the care you require without having to rely on your family members or draining your savings accounts. We’ll discuss the available options and help you select a suitable policy for your situation. 

What Types of Long-Term Care Policies Are There?
There are traditional and asset-based long-term care policies. A traditional policy includes a fixed benefit for your long-term care needs. An asset-based policy is linked to an asset. Traditional policies are use-it-lose-it policies, while asset-based plans can provide benefits to the heirs if the long-term care benefits were not used up. Depending on the policy, you may even deduct the premiums on your tax return if you itemize your deductions.

Contact Us for Your Long-Term Care Planning

We’re here to help you with your long-term care insurance needs. Financial planning for long-term care isn’t something most people can afford to do without insurance, but we can find an affordable policy to protect you from the cost of long-term care. Reach out to us today to discuss your long-term care needs.

Have a Question?  Please call us at 219-650-4050 or complete this form.  We look forward to speaking with you.

Thank you!