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The need is great.... And so is the opportunity.
Fact: Of 100 individuals turning 65 years old, 69 will have a need for long term care services in their lifetimes.
Fact: 40 percent of people receiving long term care services are between the ages of 18 and 64.
Fact: In 2008, the average monthly cost for care in a nursing home was $6,357.
Fact: 65-year-olds will require an average three years of long term care over their lifetime.
Fact: Contrary to popular belief, Medicare provides only limited coverage
for long term care.
Fact: Medicaid only provides coverage after clients have depleted most of
their financial assets.
Fact: Less than 10 percent of those age 50 and older own a long term care
insurance policy.
It all adds up to an extraordinary opportunity to serve your clients and expand your business.
Kemper, Peter; Harriet L. Komisar; Lisa Alecxih. "Long Term Care Over an Uncertain Future: What Can Current Retirees Expect?" Inquiry Journal, 42 (Winter 2005/2006): 335-350.
American's Health Insurance Plans, "AHIP Guide to Long Term Care Insurance," www.ahip.org.
U.S. Department of Health and Human Services, National Clearinghouse for Long Term Care Information, www.longtermcare.gov. Monthly home care calcualtion based on 2008 national average hourly rate of $29 and 17 hours of care per week for 4 weeks per National Claimant Study. Monthly nursing home calculation based on 2008 national average daily rate of $209 for 365 days divided by 12 months. Alecxih, Lisa. "A Dozen Long Term Care Myths and their Implications for Medicaid Reform." Presentation to the Medicaid Commission, May 18, 2006.
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Long-term care insurance may cover home care, assisted living, adult daycare, respite care, hospice care, nursing home and Alzheimer's facilities. If home care coverage is purchased, long-term care insurance can pay for home care, often from the first day it is needed. Dependent on the policy, it is possible to pay for a visiting or live-in caregiver, companion, housekeeper, therapist, private duty nurse or family member up to 7 days a week, 24 hours a day (up to the policy benefit maximum).
Other benefits of long-term care insurance:
- Many individuals may feel uncomfortable relying on their children or family members for support, and find that long-term care insurance could help cover out-of-pocket expenses. Without long-term care insurance, the cost of providing these services may quickly deplete the savings of the individual and/or their family.
- Premiums paid on a long-term care insurance product may be eligible for an income tax deduction. The amount of the deduction depends on the age of the covered person. Benefits paid from a long-term care contract are generally excluded from income.
- Business deductions of premiums are determined by the type of business. Generally corporations paying premiums for an employee are 100% deductible if not included in employee's taxable income.