8/12/2019 Five Questions About Long Term Care

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8/12/2019 Five Questions About Long Term Care

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Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2014

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations fondividual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performanceeferenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you conswith a qualified tax or legal advisor.

PL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

home care, it provides only limited coverage for homehealth care in certain states.

4. Can't I pay for care out of pocket?

The major advantage to using income, savings,investments, and assets (such as your home) to payfor long-term care is that you have the most controlover where and how you receive care. But becausethe cost of long-term care is high, you may havetrouble affording extended care if you need it.

5. Should I buy long-term careinsurance?

Like other types of insurance, long-term careinsurance protects you against a specific financialrisk--in this case, the chance that long-term care willcost more than you can afford. In exchange for yourpremium payments, the insurance company promisesto cover part of your future long-term care costs.Long-term care insurance can help you preserve yourassets and guarantee that you'll have access to arange of care options. However, it can be expensive,so before you purchase a policy, make sure you canafford the premiums both now and in the future.

The cost of a long-term care policy depends primarilyon your age (in general, the younger you are whenyou purchase a policy, the lower your premium willbe), but it also depends on the benefits you choose. Ifyou decide to purchase long-term care insurance,here are some of the key features to consider:

• Benefit amount: The daily benefit amount is themaximum your policy will pay for your care eachday, and generally ranges from $50 to $350.

• Benefit period: The length of time your policy willpay benefits (e.g., 2 years, 4 years, lifetime).

• Elimination period: The number of days you mustpay for your own care before the policy beginspaying benefits (e.g., 20 days, 90 days).

• Types of facilities included: Many policies covercare in a variety of settings including your ownhome, assisted living facilities, adult day carecenters, and nursing homes.

• Inflation protection: With inflation protection, yourbenefit will increase by a certain percentage eachyear. It's an optional feature available at additionalcost, but having it will enable your coverage tokeep pace with rising prices.

Your insurance agent or a financial professional canhelp you compare long-term care insurance policiesand answer any questions you may have.

Deductions for Long-Term CareInsurance Premiums: 2013 & 2014

Age 2013 Limit 2014 Limit

40 or under $360 $370

41-50 $680 $700

51-60 $1,360 $1,400

61-70 $3,640 $3,720

70+ $4,550 $4,660

Understandably, many eople put off planning or long-term care. But lthough it's hard to face he fact that health roblems may someday esult in a loss of ndependence, if you egin planning now,ou'll have more options pen to you in the future.

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