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Why Long Term Care Policies?

Many people live a long and healthy life. The average life expectancy, however, is constantly extended as medical practices improve, new medications are introduced, and diet and exercise programs are worked into everyday lifestyles. As people live longer, the body has a greater chance of breaking down. More people have experienced the effects of strokes, cancer, and disabling diseases, and dementia and Alzheimer issues have demonstrated to be of much greater concern. Should you be afflicted by these unfortunate conditions, you may need significant help to perform normal activities. This help might be provided at home, or you might have to be admitted to a nursing facility.

The costs of care can be paid from one's own assets (if sufficient), from relatives (children, siblings, etc.), or, if available, through government programs. The costs of care in today's environment can escalate quickly, and can exhaust any funds accumulated over the years from savings plans, investments, pensions, and other retirement programs. As an alternative, the risk of costly care can be shifted to someone else - e.g., an insurance company through a long term care policy.

A long term care policy provides a daily or monthly benefit to cover the cost of a stay in a nursing home, or for skilled or custodial care in your own home. Generally, your benefits are paid when you are no longer able to handle the normal activiites of daily living. You can also receive benefits if you suffer a cognitive impairment such as Alzheimers disease.

Long term care can be a complicated product. Federal legislation is specific for receiving benefits under tax qualified policies. Non-qualified policies use similar benefit triggers but usually add a third trigger - 'if deemed medically necessary'. It might be easier for people to receive benefits under non-qualified policies, but the insurance company often determines eligibility for payment - with qualified programs, a third-party, impartial, licensed health practitioner certifies eligibility for payment.

Long term care policies offer many choices to design the desired benefits. The premium is a function of a number of factors. For example, the amount of the benefit (whether daily or monthly) has a significant impact on the premium. Elimination periods (the time frame where the insured assumes the personal risk of payment before benefits kick in) can vary (e.g., 60 days, 90 days, etc.), and the payout can be developed for any number of years - even a plan where payments continue for the rest of your life. Cost of living adjustments (5% simple or 5% compound) generate significant benefits to keep pace with inflation, and some policies offer first day coverage for home health care services, a shared care provision (which permits one spouse to use the other spouse's benefits if the first insured's benefits have been exhausted), and survivorship benefits for programs which insure both husband and wife (i.e., if no claims are filed for ten years after the policy is approved, and one spouse dies, the other spouse maintains coverage without any additional premium for the rest of his/her life).

A quote for long term care benefits may be provided by entering the required information on this quotation link. You may also call us at 703-753-3314 (or call toll free at 1-800-571-2980).

The information for the quotation you are requesting should be completed as thoroughly and accurately as possible. Once submitted the information will be e-mailed to our office and we will expedite your request accordingly. The information provided will be kept strictly confidential, and will be used for quotation purposes only. Please feel free to call us, or send us an e-mail, if you have any questions - we look forward to serving you!


The material presented above should be used for informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources thought to be reliable, individual positions can vary and the respective professional advisors should be consulted as necessary.



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