Long Term Care Insurance

Long Term Care Insurance

Long term care insurance know how to shield personal assets and inheritance for the family, make available superior option in the assortment of long term care settings (nursing and assisted living facilities) and normally supply for fiscal security. Of late enacted federal health insurance legislation has helped make personal long term care insurance a more practical alternative for paying for long term care costs while preserving personal investments, alternative and pride.

The newly enacted Health Insurance Reform Act includes consumer protections for purchasers of long term care insurance over and above clarifications that make conduct of private long term care insurance indistinguishable to that of health insurance coverage. Starting January 1, 1997, individuals are able to comprise out-of-pocket expenses for long term care and long term care insurance premiums with their other itemized medical expenses on their annual tax returns. Long term care and other medical expenses are deductible, to the extent that they go beyond the federal government's 7.5 percent doorsill of adjusted gross income. Also, the insurance benefits consumers receive, for the most part, will not be taxable as income.

Long term care insurance policy premiums are set based on numerous factors: age, health, length of deductible period, amount paid and duration of benefits. Higher daily benefits and optional features, such as inflation protection and no forfeiture benefits, increase the premium. According to the Health Insurance Association of America, the annual premium for a low-option policy for a person at age 50 is about $850; at 65 that same policy costs about $1,800; and at 79, about $5,500. (You should consult with your insurance or financial advisor on current costs.)

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