An often overlooked aspect of estate planning is the potentiality of needing long-term care. The reality is that your private insurance will most likely not cover long-term care, so it is important to consider your options when you are estate planning. Medicare only covers long-term care in limited circumstances and with strict time restrictions. If you do not qualify for Medicaid and know that you will not be able to afford long-term care out of pocket, then purchasing long-term care insurance may be a good idea for you.

When to Purchase a Plan

Long-term care refers to any kind of service that helps incapacitated individuals accomplish daily living activities. Such activities include eating, bathing, dressing, toileting, walking and/or continence. Many financial planners recommend purchasing a plan sometime during your fifties or sixties. That way, you will still be working and able to afford the premiums, but likely will not be at a point when the insurance is needed.

Premium Cost

Premiums are calculated based on a number of factors, including age, marital status, and your health. Married couples often get a discounted rate. This type of insurance is similar to auto or health insurance in that, if you don’t use it, you lose it.

Length of coverage

It is important to be aware of when your expenses will start being covered, and when your policy ends. Many insurance plans will have a deductible period in which no expenses will be covered after qualifying for benefits in the plan. You will want to be aware of the length of time of this period before purchasing the plan so that you know how long you are responsible for paying before coverage starts. In addition, many plans will cover long-term care, but only for a certain amount of time before you need to start relying on your own funds. Again, it is important to know this length of time before you purchase your plan so that you are fully aware of your coverage regardless of the situation.

Evaluating the Cost

Are you still unsure of whether or not to purchase long-term care insurance? At Miles Tax Advisory, we will sit down with you and go over the benefits and costs. We understand that this is a major decision, and are here to help you evaluate the pros and cons.

Consider Long-Term Care Insurance with Help from Miles Tax Advisory

If you have questions about your estate planning and long-term insurance plan, call on Miles Tax Advisory. We are always here to assist you!