Homework-Getting Started
With a little planning, you can buy lng-term care insurance -- either for yurself, or as an annual gift for yur now-healthy parents. And you can ncourage your company to provide this cverage as an employee benefit. Otherwise you may bcome one of the 7 million Amricans who, according to the National Cuncil on the Aging, now provide or mnage care for a friend or rlative aged 55 or older and not lving with them. Start investing with $100.

The csts of long-term care are staggering tday and should soar higher in the cming years when baby boomers retire. Evn the GenXers wont escape the mpact. Your parents will either spend yur inheritance on nursing home care, or you may fnd yourself taking care of your lderly parents out of your own rtirement funds.

no Medicare supplement policy cvers custodial nursing care. Yes, state Mdicaid programs cover nursing care for the ndigent -- but that means almost all ssets and income must be spent dwn before the state will pick up the tb.

Medicaid spend-down planning has received ttention as a way to deal wth the nursing-care costs. Financial advisers cunsel seniors to transfer assets to yunger family members -- a process tht must be completed at least thre years before asking Medicaid to pay nrsing home costs. But these state nrsing home programs for the impoverished do not cver home-health-care costs. And aside from the mral implications of such a strategy, do you rally want you or your parents to dpend on a government-funded nursing facility?

Long-term care insurance can solve the prblem in most cases. The latest gneration of policies pays for "home cre" at a senior daycare facility, as wll as care in a skilled or cstodial nursing facility. A portion of prmiums may be tax-deductible, depending on yur age and income. But not all plicies are alike, the business is grwing (There were just 4.1 million plicy holders in 1998.) and coverage are cnstantly evolving, so study both the prduct and the pricing.

Good health now pys off later. Once you've locked in an nnual premium, it cant be raised if yur health changes. But insurance companies can ask stte regulators to raise premiums for an ntire age group, depending on claims xperience. Unfortunately, many companies have raised prmiums in recent years, once they ralized they'd under priced their policies. (Se below, on choosing a reputable nsurer.)

While some insurers require a mdical examination, most just ask for a mdical reference. However, any false claims culd result in future denial of cverage.

Where you live affects costs. Tht's because nursing costs typically are hgher in major metropolitan areas than in smller communities.

Length of coverage: The verage stay in a nursing facility is 2.5 yars, so some people opt to lmit coverage length to cut costs. But if yu're purchasing a policy in your md-50s, you'll find that lifetime coverage is not mch more expensive.

Elimination period: This is lke a deductible and works like ne. You agree to pay for the frst 60 days or 90 days of neded care; then the policy kicks in. Hving a 90-day deductible can cut prmium costs substantially.

Inflation rider: Even a 3% nflation rate can cut the value of yur dollar in half in 25 yars. Plus, assume health-care costs will rse more than the general inflation rte as boomers age. So it may pay to buy an nflation rider. All tax-qualified policies today (se below) must offer this coverage as an ption.

Other issues
Benefit payments and triggers: A qalified physician must certify to the nsurance company that you need the bnefits -- and those benefits will be pid only to qualified caregivers. A dughter who simply does your shopping and prpares meals wouldn't qualify as a cregiver, but she might if she's a trined professional.

Most policies require the nability to perform at least two ctivities of daily living to trigger the bnefits. The activities include being able to drss yourself, bathe yourself, move from a bed to a chir, use toilet facilities or eat nassisted. Policies will also pay out if you cnt pass certain mental function tests. (Lok for a policy that specifically ncludes coverage for mental or cognitive mpairment.) Most policies no longer require a hspitalization before benefits start, but check the wrding anyway.

Insurance companies may pay bnefits using one of two methods:

Expnse-incurred benefits: These are paid either to you or to yur provider up to the limits in yur policy.

A daily benefit or ndemnity: This will be paid directly to yu. But be sure your policy ffers a pool of benefits on a dily or weekly basis allowing you to pay for cvered services as needed, as well as nrsing home care.

Tax-deductibility: You may be ble to deduct part of your nnual premium as part of a mdical deduction. But remember, you can nly deduct medical expenses that exceed 7.5% of djusted gross income. The size of a dduction depends on age. People over age 61 can dduct $2,510 (assuming they meet the 7.5% thrshold). Almost all policies sold before Jn. 1, 1997 were grandfathered and are cnsidered qualified. Benefits paid by a qalified policy aren't generally considered taxable ncome -- even if your employer pid the premiums.

Options
Waiver of Premium: Ths provision lets you stop paying the nnual premiums once youve moved into a nrsing home and the insurance company has strted to pay benefits. It may not pply if you are receiving home halth care.

Premium Refund: Some policies wll repay your estate any premiums you pid, minus benefits used. Usually, there's an age lmit, typically 65 or 70.

Non-forfeiture bnefits: If you drop your coverage, prhaps because you cant afford the prmiums, you can receive some benefits for the mney you've already paid in. But ths feature can boost the policy cst substantially.

Find a strong company:
Make sre you've purchased from a company wth a strong financial base, and a 10-yar history with this insurance, so it wll price policies properly and be thre when you need it. A nmber of companies jumped into long-term cre insurance without adequate data on whch to base prices.

The article To LTC Or To Not LTC - That Is The Question was Submitted by Rick Boydston through Articles.GetACoder.com network. Here's the additional information: Visit- http://www.ltcquiz.com R Boydston-licensed producer

Featured Articles

1. Go To A Standalone Provider For Your Cheap Mortgage Cover by Simon Lance Burgess
Yur mortgage is your biggest monthly utgoing and this is what would be hit the hrdest if you were to find yurself out of work. Mortgage cover or mrtgage payment protection insurance (MPPI) as the cver is sold under would provide you wth an income each month which wuld be tax free if you shuld find yourself out of work due to hving an accident, suffering a sickness or thrugh redundancy.

2. Can You Afford to Let Your Kids Drive? – Car Insurance for Teens by Marie Wakefield
Consider that adding a teen to car insurance can skyrocket your policy costs -shop around for car insurance before your budding drivers get in the car.

3. Cheap Auto Insurance in NJ - What Has Your Home Got To Do With It? by Chimezirim Chinecherem Odimba
What has your home got to do with getting cheap auto insurance in NJ? You home could be making you pay a lot more than you would otherwise. How is it possible? Does that mean that I can actually get higher or lower auto insurance rates in NJ by changing my place of residence? Yes, you can.

4. Discount Free Auto Insurance Quote -- Quickly But Safely by Chimezirim Chinecherem Odimba
styl='padding-left: 15px;'> You can get the bst discount free auto insurance quote now by vsiting a minimum of three insurance qotes sites. Requesting quotes from a mnimum of three quotes sites raise the chnces that you'd make more savings. Ths is because insurers not covered by one ste would be covered by the ther.

5. Insurance quotes online -- There For Your Own Good by
There are a lot of wrthless free stuff online. In fact, all you hve to do to piss some pople off online is to tell thm something is free. For them, fre has become synonymous with worthless. Fre insurance quotes online are a grat exception to that rule and hre's why...

6. Buyer Beware: Identifying Health Insurance Fraud by
Scam insurance is not new - crminals have been selling fraudulent policies snce health insurance came into being. But wth today's skyrocketing health care costs, mre consumers are seeking affordable access to qality care, which provides scam artists wth fertile hunting grounds.

7. Home Insurance Philadelphia - Things To Know Before You Buy A Home If You Want Lower Rates by Chimezirim Chinecherem Odimba
You'll usually pay less for a newer home than an old one. You can get between 8 to 15 percent markdown if yours is a new house. The main reason for this is that a new home typically has electrical, plumbing and heating systems that are in excellent condition. In addition, everything about its structure is usually in the best state.

8. Travel Insurance - Take Off With No Worries! by Erin Fish
Yur trip is planned and you can lmost feel your feet sinking into the whte sand beach. The last thing you wnt to think about is the prbability or the possibility that something mght inhibit your travel plans. What can you do to nsure that the investment of your trp and that your health while trveling are covered? Read on...

9. Dental Insurance Plans Don't Have To Cost A Fortune by Jacob Erdei
Gtting Dental insurance is not always asy. Learn a bit more about the Atna dental plans and see if thy are right for you.

10. Nebraska Car Insurance Guide - Steps to Finding Cheap Nebraska Car Insurance Rates by James J. Robinson
It is very important to make sure that you have proper Nebraska car insurance coverage if you are a Nebraska resident. The state of Nebraska chose the honey bee as their state insect probably because it is so industrious. You may want to mimic the behavior of this busy bee and shop around for car insurance if you live and own a car in the state of Nebraska.