What is Care Insurance?
Freedom. The easiest way to describe care insurance is that it provides you with choice and freedom. Most people have experienced the nursing home: vinyl flooring, florescent lighting, and unpleasant smells. No one would choose to be there.
By choosing private care insurance, you're giving yourself the flexibility to choose where, when, and how you receive care. Would you rather stay at home? Would you prefer to reside in an assisted living environment, or have your kids professionally trained in your care? Care Insurance reimburses you for a wide range of care choices.
Types of Care Insurance
Traditional Long Term Care (LTC)
Similar to your health insurance in structure, the traditional form of long-term care insurance has an annual premium and a fixed pool of benefits that typically grow every year. A common misunderstanding is that this only pays for nursing home costs. It couldn't be further from the truth today's LTC insurance pays for numerous types of care. We can cover a couple with one policy, and we can also design a short-pay scenario.
Asset Transfer Long Term Care
Perhaps the most under-utilized form of insurance we offer is an asset-transfer long-term care plan. This is a specific type of insurance policy in which a pool of money is rolled over, and is the most conservative approach to minimizing your long-term care risk. You'll either collect the money as long-term care reimbursements if you need them, as a death benefit should you not have any long-term care need, or as a full refund should you decide to cancel.
Unique Planning Benefits
The government has begun to entice the individual and businesses to utilize private insurance for their long term care needs. The government simply cannot afford to pay for it. Thus, we have some unique tax benefits for people and companies buying care insurance.
Tax Benefits for Businesses
The biggest incentive has been provided for businesses both small and large . Depending on the structure of your business, you could be able to deduct a significant portion or the full premium against your taxes. Moreover, this is a selective benefit that does not have to be offered to every employee. Most of the time, it's a triple tax benefit: the premiums are tax deductible, the premiums are not taxable as income to the employee, and the benefits are paid tax free.
Tax Benefits for Individuals
For individuals purchasing outside of a business, the benefits paid from a long term care policy are tax-free. Your premiums may also be tax deductible, depending on a couple of variables such as current health care premiums and income level. We can give you a starting point with regards to tax deductability, but we are not tax advisers and it's recommended that you consult with your accountant before making any such deductions. As always, we' re happy to interface with your lawyer or CPA when developing any insurance plan.