Could anyone please explain the benefits of Long Term Care Health Insurance?
Total Comments: 12
Posted: Thu Jan 07, 2010 02:47 pm Post Subject:
Choice of care, and protection of assets. Long Term Care can help keep you out of a nursing home as your ability to live independently wanes by giving you the funds needed to hire care that medicaid wouldn't offer, e.g. nursing care at home, adult day care, and some will provide funds for a family member to care for you and be reimbursed for lost time working elsewhere.
Additionally, if you do need to end up in a nursing home, a good LTCi policy gives you more options with respect to where you can choose to go. The alternative being medicaid planning with an attorney to make youself eligible for medicaid benefits--not a ridiculously hard thing to do--and then having a more limited choice of facilities.
The asset protection side prevents you from spending your own money on long term care needs. Visiting nurses and nursing homes aren't cheap. If you have trouble seeing your assets depleted by long term care costs, LTCi may be a solution to prevent this.
Posted: Fri Jan 08, 2010 05:27 am Post Subject:
I am copy-pasting lines from the article I found on one of site. If you find it useful, you can learn more about it on
(link removed by moderator per TOU -InsTeacher)
1. Keep your independence and dignity.
Seniors who are unable to pay for their own long term care must first have no substantial assets before they can qualify for Medicaid assistance. Medicaid may not allow you the choice of home care or an assisted living facility. Instead, it can insist on nursing home care. Also, Medicaid insurance typically only pays for a semiprivate room and not all nursing homes accept Medicaid patients. Many people may feel a loss of dignity at being in a nursing home environment.
A long term care insurance policy gives you more options of care and freedom. You can decide to be cared for in your own home or in an assisted living facility. Ultimately, if a nursing home is needed, the policy coverage will pay for the nursing home care.
Posted: Fri Jan 08, 2010 05:28 am Post Subject:
(Post deleted by moderator; duplicate -InsTeacher)
Posted: Sat Jan 09, 2010 07:18 am Post Subject:
revacyrus sort of confuses the issue of Medicaid coverage of LTC expenses. "Medicaid insurance" is a mild misnomer. There is no such thing as "Medicaid insurance" -- the earlier mention of "assistance" is accurate, and the better term to use.
Seniors who are unable to pay for their own long term care must first have no substantial assets before they can qualify for Medicaid assistance.
Actually, there is a two-prong test of assets and income known as the "spend-down test" (from the "Spousal Impoverishment Act"). If married, "countable" assets must be equally divided between husband and wife. A personal residence, one auto, personal jewelry, and business assets are among the primary "excludable" assets. Life insurance cash value, annuity cash value not yet annuitized, are among countable assets -- thus attempting to hide one's cash in an annuity or life policy does not work. (An annuitized annuity creates "income" subject to the spend down.)
Haven't yet looked for the 2010 numbers, but the confined spouse must have assets of no more than about $2,000 and is allowed a monthly allowance of $35. If that person has regular monthly income (from an annuity or a pension/retirement plan), it must be used as a "share of cost" toward one's care. The "community spouse cannot have assets exceeding about $105,000, or monthly income derived from the "confined" spouse that exceeds about $2500/mo -- otherwise they, too become part of the share of cost equation. If the community spouse works, however, he/she may keep 100% of those separate earnings.
Medicaid must generally pay for care in an "approved" facility (one licensed with the state, and other qualifiers, and which accepts Medicaid beneficiaries), while home care options will vary by state.
Also, for persons age 55 and older, the federal government mandates that states exercise "asset recovery" following the death of the Medicaid "beneficiary" (or the later death of their spouse) for all $$ expended for that person's long term care. So consider it a no-interest loan against your home -- the one asset they will place a lien against and definitely come after. Can't try to hide it in a trust at the last minute, or give it to another family member either, because the lookback period for asset removal ("hypothecation") is 60 months. [Such attempts to give last-minute gifts in an attempt to deplete one's assets do not force the return of the gift, but create a problem in the spend-down test: you must spend down the "value" of the gift, but with what? The money has been transferred. If returned by the recipient, it may be counted as new assets which must be spent-down.]
As has been said above, the true value of LTCI is both independence (from state and/or federal restrictions) and options (that a lack of liquid cash assets will obviate). The value in the trade-off of premium dollars for LTCI benefits is easy to see when you calculate the number of days it takes at the maximum daily benefit to recover one's cost-basis . . . usually less than 60-90 days, even after 20 years of paying premiums, or longer!
For most middle-aged, middle income persons, LTCI should be a "no-brainer." Unfortunately, that's not yet the case.
Posted: Mon Jan 11, 2010 05:22 am Post Subject:
revacyrus, I will appreciate of you could tell me where you find that article. I would like to go through the article. Thanks.
Posted: Mon Jan 11, 2010 05:59 am Post Subject:
With LTC or Long Term Care you can be covered for adult daycare, respite care, nursing facilities at home, home care and hospice care. It not just provides money for any kind of long term care but also gives you financial independence at old age or when you need it. Moreover, benefits paid from LTC are excluded from income and hence are tax free.
Posted: Tue Jan 12, 2010 05:28 am Post Subject:
When you are home page of
www (dot) long-term-care-insurance-planners (dot) com
on extreme left, click on LTC Insurance Basics, then on Why buy LTC Insurance.
Posted: Tue Jan 12, 2010 05:27 pm Post Subject:
Acurate information please!!! How many times do I have to say it!! If you do not know the answer, do not post!! Come on!!
Posted: Wed Jan 13, 2010 05:49 am Post Subject:
Thanks for replying to my post
Posted: Mon Jan 25, 2010 06:30 am Post Subject:
An individual may be able to deduct part of the premiums for a long term care insurance policy and benefits paid out will generally not be taxable as income. List on Form 8853. Benefits paid to you under a non tax-qualified long term care plan may be considered taxable income. Buying a non tax-qualified plan could increase your tax liability and reduce the value of the benefits.
Posted: Thu Jan 07, 2010 02:47 pm Post Subject:
Choice of care, and protection of assets. Long Term Care can help keep you out of a nursing home as your ability to live independently wanes by giving you the funds needed to hire care that medicaid wouldn't offer, e.g. nursing care at home, adult day care, and some will provide funds for a family member to care for you and be reimbursed for lost time working elsewhere.
Additionally, if you do need to end up in a nursing home, a good LTCi policy gives you more options with respect to where you can choose to go. The alternative being medicaid planning with an attorney to make youself eligible for medicaid benefits--not a ridiculously hard thing to do--and then having a more limited choice of facilities.
The asset protection side prevents you from spending your own money on long term care needs. Visiting nurses and nursing homes aren't cheap. If you have trouble seeing your assets depleted by long term care costs, LTCi may be a solution to prevent this.
Posted: Fri Jan 08, 2010 05:27 am Post Subject:
I am copy-pasting lines from the article I found on one of site. If you find it useful, you can learn more about it on
(link removed by moderator per TOU -InsTeacher)
1. Keep your independence and dignity.
Seniors who are unable to pay for their own long term care must first have no substantial assets before they can qualify for Medicaid assistance. Medicaid may not allow you the choice of home care or an assisted living facility. Instead, it can insist on nursing home care. Also, Medicaid insurance typically only pays for a semiprivate room and not all nursing homes accept Medicaid patients. Many people may feel a loss of dignity at being in a nursing home environment.
A long term care insurance policy gives you more options of care and freedom. You can decide to be cared for in your own home or in an assisted living facility. Ultimately, if a nursing home is needed, the policy coverage will pay for the nursing home care.
Posted: Fri Jan 08, 2010 05:28 am Post Subject:
(Post deleted by moderator; duplicate -InsTeacher)
Posted: Sat Jan 09, 2010 07:18 am Post Subject:
revacyrus sort of confuses the issue of Medicaid coverage of LTC expenses. "Medicaid insurance" is a mild misnomer. There is no such thing as "Medicaid insurance" -- the earlier mention of "assistance" is accurate, and the better term to use.
Seniors who are unable to pay for their own long term care must first have no substantial assets before they can qualify for Medicaid assistance.
Actually, there is a two-prong test of assets and income known as the "spend-down test" (from the "Spousal Impoverishment Act"). If married, "countable" assets must be equally divided between husband and wife. A personal residence, one auto, personal jewelry, and business assets are among the primary "excludable" assets. Life insurance cash value, annuity cash value not yet annuitized, are among countable assets -- thus attempting to hide one's cash in an annuity or life policy does not work. (An annuitized annuity creates "income" subject to the spend down.)
Haven't yet looked for the 2010 numbers, but the confined spouse must have assets of no more than about $2,000 and is allowed a monthly allowance of $35. If that person has regular monthly income (from an annuity or a pension/retirement plan), it must be used as a "share of cost" toward one's care. The "community spouse cannot have assets exceeding about $105,000, or monthly income derived from the "confined" spouse that exceeds about $2500/mo -- otherwise they, too become part of the share of cost equation. If the community spouse works, however, he/she may keep 100% of those separate earnings.
Medicaid must generally pay for care in an "approved" facility (one licensed with the state, and other qualifiers, and which accepts Medicaid beneficiaries), while home care options will vary by state.
Also, for persons age 55 and older, the federal government mandates that states exercise "asset recovery" following the death of the Medicaid "beneficiary" (or the later death of their spouse) for all $$ expended for that person's long term care. So consider it a no-interest loan against your home -- the one asset they will place a lien against and definitely come after. Can't try to hide it in a trust at the last minute, or give it to another family member either, because the lookback period for asset removal ("hypothecation") is 60 months. [Such attempts to give last-minute gifts in an attempt to deplete one's assets do not force the return of the gift, but create a problem in the spend-down test: you must spend down the "value" of the gift, but with what? The money has been transferred. If returned by the recipient, it may be counted as new assets which must be spent-down.]
As has been said above, the true value of LTCI is both independence (from state and/or federal restrictions) and options (that a lack of liquid cash assets will obviate). The value in the trade-off of premium dollars for LTCI benefits is easy to see when you calculate the number of days it takes at the maximum daily benefit to recover one's cost-basis . . . usually less than 60-90 days, even after 20 years of paying premiums, or longer!
For most middle-aged, middle income persons, LTCI should be a "no-brainer." Unfortunately, that's not yet the case.
Posted: Mon Jan 11, 2010 05:22 am Post Subject:
revacyrus, I will appreciate of you could tell me where you find that article. I would like to go through the article. Thanks.
Posted: Mon Jan 11, 2010 05:59 am Post Subject:
With LTC or Long Term Care you can be covered for adult daycare, respite care, nursing facilities at home, home care and hospice care. It not just provides money for any kind of long term care but also gives you financial independence at old age or when you need it. Moreover, benefits paid from LTC are excluded from income and hence are tax free.
Posted: Tue Jan 12, 2010 05:28 am Post Subject:
When you are home page of
www (dot) long-term-care-insurance-planners (dot) com
on extreme left, click on LTC Insurance Basics, then on Why buy LTC Insurance.
Posted: Tue Jan 12, 2010 05:27 pm Post Subject:
Acurate information please!!! How many times do I have to say it!! If you do not know the answer, do not post!! Come on!!
Posted: Wed Jan 13, 2010 05:49 am Post Subject:
Thanks for replying to my post
Posted: Mon Jan 25, 2010 06:30 am Post Subject:
An individual may be able to deduct part of the premiums for a long term care insurance policy and benefits paid out will generally not be taxable as income. List on Form 8853. Benefits paid to you under a non tax-qualified long term care plan may be considered taxable income. Buying a non tax-qualified plan could increase your tax liability and reduce the value of the benefits.
Add your comment