Long Term Care

Marge and Tom just received the shock of their lives. Marge’s mother has become seriously ill and can no longer take care of herself. She will need constant care and must be placed in a Long Term Care nursing facility. She could be there two or three years. * It is going to cost over $45,000 a year.

The mother has been living on social security. Marge and Tom are already helping her out financially, but $45,0000 a year?

What to do? Mortgage the home? Sell their securities, or other assets? Will they have to let mother suffer the indignity of going on welfare?

Are you faced with the prospect of having to pay for a family member, spouse or yourself if there is a need to be confined to a nursing facility or be taken care of at home because of a prolonged accident or illness?

Long Term Care planning is one of the best ways to solve the problem today. You can prepare now to provide for home care, adult day care, or a nursing facility.

The best way to find out more about Long Term Care planning is to EMAIL the response card IS LONG TERM CARE IN YOUR FUTURE . A Long Term Care planning specialist from our office will be happy to provide you with information and answers.

LTC Buyers Are Getting Younger

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The average age of LTC insurance buyers dropped below 60 for the first time, according to a study by the American Assn. for Long-Term Care Insurance. The average age of Americans purchasing individual long-term care insurance protection is 58. That’s a significant change from 2000 when the average age was 67, noted Jesse Slome. There is more public awareness of the importance of planning before retirement. Also, lower costs are available at younger ages. Insurers pay more than $3.3 billion in yearly long-term care insurance benefits and 68.7% of these payments benefit women, Slome added. Women are far more likely to need long-term care and far more likely to benefit from their insurance protection, Slome said. The study also includes the following results:

  • 8 Million Americans have long-term care protection. This includes individual and employer-sponsored long-term care insurance, plus annuity and life insurance policies that offer long-term care benefits.
  • $3.3 Billion in long-term care insurance benefit payments were paid in 2006.
  • 14.3% of purchasers were under age 50.
  • 46% of purchasers were between 50 and 60.
  • 39.7% of purchasers were over age 60.
  • $154 is the average daily benefit amount purchased for long-term care insurance protection.
  • 9.4% purchased less than $100 per-day ($3,000/month).
  • 39.4% purchased between $100 per-day and $150 per-day.
  • 51.2% purchased more than $150 per day.

IRS Increases LTC Deductibles

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The IRS increased deductibility levels for long-term care insurance policies purchased in 2008. Deductible limits under Section 213(d)(10) are for eligible long-term care premiums relating to the term “medical care” for certain ages before close of taxable year:

2007 Deductible Limits 2008 Deductible Limits
40 or younger $290 $310
Older than 40, but not older than 50 $550 $580
Older than 50, but not older than 60 $1,110 $1,150
Older than 60, but not older than 70 $2,950 $3,080
Older than 70 $3,680 $3,850

"Tax advantaged long-term care insurance is one of the few remaining significant tax-savings benefits for owners and self-employed people," said Jesse Slome, executive director of the American Assn. for Long-Term Care Insurance (AALTCI). Discounts for small groups are increasingly available for businesses, even those with 10 or fewer employees. Millions of small and mid-sized business owners are still unaware that the cost of long-term care insurance protection may be fully tax deductible for themselves and their spouse, he added.

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21061 S. Western Ave. #110
Torrance, CA 90501

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