State LTC Mandates and Why Coverage Matters Now

LONG-TERM CARE INSURANCE (LTC) — LATEST NEWS

Several states, including California, are evaluating Washington State's approach to taxing individuals who do not have Long-Term Care Insurance coverage.

THE GROWING NEED FOR LTC INSURANCE

Rising healthcare costs pose a serious risk to any retirement plan.

• Over 50% of LTC claims stem from Alzheimer's or Dementia — conditions that may require care for a decade or more.
• The cost of a private room in a skilled nursing facility can reach $15,000 per month.

THE IDEAL POLICY

Provides lifetime benefits for joint insureds and, if LTC is never required, guarantees a death benefit exceeding the premiums paid.

THE COST OF SELF-INSURING: A RISKY GAMBLE

• A one-time premium for lifetime coverage typically equals one year in a nursing home for most.
• The policy's substantial cash surrender value is an asset on your balance sheet.
• A 10-year dementia episode may cost $1,800,000.
• Without insurance, the financial burden doubles to $3,600,000 (assuming a 50% tax bracket).
• If LTC is never needed, the policy's death benefit exceeds the premiums paid.

TYPES OF CARE COVERED

Nursing Homes, Adult Day Care, Assisted Living, Home Health Care, Homemaker Services, Hospice Care, International Care, Residential Care Facilities, and Respite Care.

FUNDING LONG TERM CARE WITH

Long-Term Care Insurance, Health Savings Accounts (HSAs), Annuities, IRAs, Life Insurance, C Corporations, Reverse Mortgages.

TO LEARN MORE

Contact Bert Payne
(925) 708-6501
[email protected]