Protecting Against the Costs of Long-Term Illness

The expense of catastrophic illness and long-term nursing home care ranks as one of the major concerns of aging Americans and their families. Most thoughtful people, upon reflection, would prefer not to have health care costs deplete their life savings, effectively disinheriting family members.

What can a person do?  It's important to make your plans as early as possible.  Long-term care insurance is a practical approach.  Policies today cover a wide range of options, from home care and assisted living facilities up to the higher levels of care provided by nursing homes.  Insurance costs depend on many factors, especially the age when you purchase the policy.   Benefits commonly continue for three years, with increases for inflation built in, and would begin after a 90- or 100-day “elimination period.”        
  
You should carefully investigate the companies and policies before buying.  Insurance premiums will vary state to state, as will the costs of care.  The most important step you can take is to see an insurance broker who works with a number of companies and can help you sort through the options and costs.

Note: Recent tax law changes encourage the purchase of long-term health insurance by making premiums deductible as medical expenses up to certain maximum amounts, based on a person’s age.  Deductions are indexed annually for inflation.

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