E-News – January 2023
LONG-TERM CARE (LTC) INSURANCE - TAX
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THE LONG-TERM CARE INSURANCE TAX MAY IMPACT YOU
Multiple states, including California, are now considering following Washington State's lead in taxing employees who do not own a Long-Term Care Insurance policy. Before this becomes law in California, which could happen as soon as 1/1/2024, LTC carriers may temporarily suspend sales as residents rush to buy LTC insurance to avoid the tax. Thus, if you are a resident of California, now is the best time to consider an LTC policy.
WHY THE NEED FOR LTC INSURANCE
Over 50% of LTC claims are for Alzheimer's/Dementia, which could last twenty years. A private room in a San Francisco Skilled Nursing Facility costs $15,000 a month. Medicare and Private Medical Insurance provide minimal LTC benefits. Forty percent (40%) of those receiving LTC services are aged 18 - 64 due to car accidents, illness, injury, and disability.
Policies are available to those aged 85.
Long-Term Care insurance is medically underwritten; premiums escalate with age as health declines.
POLICY DESIGN
We specialize in policies that pay lifetime benefits for joint insureds, and if LTC is never needed, pay a death benefit that usually exceeds the premiums paid. For a quote, all we need are birthdays.
SCOPE OF COVERAGES
Adult Day Care, Assisted Living Facility, Home Health Care, Homemaker Services, Hospice Care, International Care, Residential Care Facility, and Respite Care.
FUNDING LONG-TERM CARE
Health Savings Account, Annuities NQ, IRA's, Life Insurance, C CORP, Reverse Mortgages.