FAQs About Long Term Care Insurance

The decision to purchase long term care insurance is a personal one and it is also one of the most important decisions you can make to protect your retirement savings and preserve your legacy. The following are some of the most frequent questions we are asked about long term care insurance, and we’re happy to share them with you.

What is long term care insurance (LTCi)?

Long-term care insurance is coverage that pays for nursing-home care, home health care, care in an assisted living facility, or personal or adult daycare for individuals with a chronic or disabling condition that needs constant supervision. LTC insurance may offer more flexibility and choice of providers compared to public assistance programs, such as Medicaid.

Is long term care insurance costly?

Long term care insurance may be more affordable than you think. There is a range of options depending on your needs and your budget. A long term care specialist may be able to help you find a plan that is right for your circumstances.

When can I use the policy I purchased?

Each carrier has different criteria but in general a policyholder would begin to receive benefits when they are unable to perform at least 2 of 6 activities of daily living (ADLs), or they require substantial assistance due to serious cognitive impairment.

Is long term care insurance portable?

Yes. Private long term care insurance offers national – and in some cases, international – portability of your benefits. Be sure to let your specialist know of your retirement plans, and he or she will find you a plan that will follow you.

How do I use my HSA (Health Savings Account) to fund my long term care policy?

You may be able to contribute pre-tax dollars into your HSA up to your annual limit. You may be able to pay the premium and request reimbursement from your HSA administrator for you or your spouse each year up to an annual age-based limit.

Why should I purchase long term care insurance instead of paying for care from my savings when I need it?

The cost of care in the future can quickly drain your savings. Insurance can help leverage that by offering a larger pool of funds.

LTCi policies may provide:

  • Inflation protection that ensures your pool of benefit dollars can increase with inflation
  • Options to get a return of premiums or life insurance if LTC benefits are never used
  • Spousal discounts and discounts for being in good health
  • Tax incentives, such as the ability to use your Health Savings Account (HSA), tax-deductibility for business owners, and tax-free benefits
  • While researching your LTCi options, you will be matched with an LTCi specialist with years of experience to help guide you to the best plan for your dollar. The consultations are complementary.

At what age should I buy long term care insurance?

Many people wait to purchase LTCi until the ages of 40 to 65 after they have had a personal experience with a family member who required care. However, the sooner you decide that long term care planning is right for you, the more options you generally have and the more affordable the coverage.

I’d like to consider my options. Where do I start?

By filling out the form at www.buddyins.com/ltc-plan/, you can meet remotely (and at your convenience) with a long term care insurance specialist with years of experience. Our service is at no cost to you and we will help guide you to the best plan for your dollars.

Our LTC specialist community is here to help. Long term care planning may be one of the most meaningful things you can do for your family to protect them from becoming unintended caregivers.


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