December is a month to remember the loved ones around us and a good time to think about finance as well. End of year finances revolve around taxes usually, and one tax deductible item many older Americans need but neglect is Long Term Care Insurance. This is coverage that pays for home care, assisted living, or even nursing home. LTC Insurance was developed to help middle-income Americans cope with the huge costs and avoid government programs like Medicaid. The mothers of the family and the wives of the family end up being the primary caregivers. As a result, women tend to end up alone, needing more outside care then their husbands even did, after the husband has died.
The Solution
Typical plans will pay a certain amount per day and for a certain number of years. Comprehensive plans do not require you to pre-guess how you will use the plan. The settings mentioned before, home care, assisted living, or even nursing home are all available down the road. Policies are typically activated when your doctor tells you you need assistance with 2 of 6 Activities of Daily Living. Once that ball is rolling, there is often a 90 day wait or longer before benefits kick in. Long term Care experts recommend a longer elimination period to those who could afford the first year of care out of their own liquid assets. To learn more about this and other Long Term Care Insurance information, a good resource is both wikipedia and LTC Tree.
