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Long Term Care Insurance Industry Pays $6.6 Billion In Benefits
Monday, 11 March 2013 15:51

Over 264,000 individuals were receiving claims payments from Long Term Care insurance as of the end of 2012.

“Insurers paid $6.6 billion in benefits last year to individuals needing care at home, in assisted living communities as well as in skilled nursing facilities,” according to Jesse Slome, director of the American Association for Long Term Care Insurance that released the findings.

“At a time when so much is written about rate increases and changing markets, there is no more important story to tell than the fact that the nation’s long term care insurers pay claims, and lots of them.”

Some highlights of this recent report:

  • The leading causes for long term care insurance claims are Alzheimer’s disease, stroke, arthritis and cancer.
  • Women account for about two-thirds of all Long Term Care insurance claims.
  • Long term care received at home accounts for half of all new Long Term Care insurance claims.

“People associate long term care with nursing home care but insurance actually enables many people to remain at home when care is needed,” Slome adds.

Unfortunately, only eight million Americans own Long Term Care insurance.

”More people recognize the value of this protection which does so much more than just pay for qualifying care,” says Bill Jones, President of The MedAmerica Companies, a long term care insurance carrier. ”Long term care insurance provides choice and control, protects retirements and lifestyles, and allows loved ones to care about you rather than being forced to care for you. You can’t put a price on that kind of value.”

Source: The American Association for Long-Term Care Insurance, a trade organization established in 1998 to foster awareness of the importance of planning for long term care.

Long Term Care Insurance Premiums Are Tax Deductible

At age

40 or less

More than 40 but not more than 50

More than 50 but not more than 60

More than 60 but not more than 70

More than 70

You can deduct

$   360

$   680

$1,360

$3,640

$4,550

Some states offer additional tax incentives. Call (800) 680-5596 for details about your state's programs.

Long Term Care Insurance offers Asset Protection Benefits

In many states, if you own a Long Term Care insurance policy that qualifies under a state Partnership Program, then your estate can be preserved up to the amount of coverage you own, even if your total cost of care exceeds your policy benefits and you receive Medicaid benefits.

The purchase of Long Term Care insurance is a serious decision, with significant financial implications for you and your family. That is why it is always a good idea to use a professional independent insurance agent when purchasing Long Term Care insurance. The best choice is an insurance agent that has earned the professional designation, Chartered Life Underwriter. For a complimentary initial consultation, call today (800) 680-5596, or send an This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Do you need Long Term Care insurance?

Do you want to protect your estate from government confiscation after receiving Long Term Care benefits under Medicaid?

 

Brent D. Gardner, CLU, ChFC