Happy Thanksgiving from Newman Long Term Care! We hope you and your loved ones have a safe and relaxing holiday. http://ow.ly/i/3Rgfs
Funding Long Term Care Insurance – Buying a Starter Policy.
There are several funding options available to help people on tight budgets pay for long-term care insurance, including the option to buy a small, affordable policy now and then purchase a better supplemental plan a few years later.
There are also several guaranteed purchase options that can aid in paying for long-term care insurance. With these options, individuals can add up to 15 percent of additional benefits to their policy every three to five years (depending on the insurer). These added benefits are based on the policyholder’s current age and no further evidence of insurability is required.
With this option, people can purchase a long-term policy that they can afford now, with the opportunity to add more coverage in the future as their finances allow.
As families across the nation begin to organize their households for fall, it’s important for everyone to have a retirement plan in place that secures their financial future. Long-term care insurance can help and with an affordable starter policy, even consumers on tight budgets do not have to be without protection.
Funding Long Term Care Insurance – Using An Annuity.
An annuity is a regular series of payments that an individual receives within a specific timeframe. This type of savings plan is used by people looking for long-term growth and protection of assets that will likely be needed during retirement.
Commercial annuity products, which are provided by insurance companies, can help people plan their future by financing long-term care insurance. There are several different types of annuities and they can differ in a variety of ways, including when and how often payments are made by the insurer. The time period that a person collects payments from an insurance company also varies, as these payments may be made for a fixed amount of time or until the annuitant’s death.
One type of annuity well-suited to pay for insurance coverage is immediate annuities. An immediate annuity provides regular payments that an individual buys with one lump sum of money. When someone buys a stream of income through an immediate annuity, that person is buying a guarantee from an insurance company that payments will be made right away or in the near future.
By buying an annuity with some savings, individuals have more money to cover the costs of long-term care insurance without having to pay for premiums out of their regular budget. This is a viable option for people who have enough savings to buy an annuity, but not enough to cover the costs of paying for long-term care themselves. Annuities allow consumers to protect themselves with long-term care insurance without the worry of depleting most or all of their savings in the future.
As families across the nation begin to organize their households for fall, it’s important for everyone to have a retirement plan in place that secures their financial future. A long-term care policy can help and with annuities, even consumers on tight budgets do not have to be without protection. ow.ly/i/2NF94
Funding Long Term Care Insurance – Using Health Savings Accounts (HSA).
An HSA is a tax-advantaged medical savings account accessible to taxpayers in the U.S. who are enrolled in a high-deductible health plan. A high-deductible health plan has a yearly deductible of at least $1,200 for individuals and $2,400 for families.
Using an HSA to pay for insurance can be a smart alternative for people who can’t deduct their premiums as a self-employed person or as reimbursed medical expenses on a federal tax return. Qualified long-term care insurance premiums are considered a medical expense, meaning people can take money from their HSA to cover these costs.
There are numerous tax advantages associated with HSAs such as tax-free benefits on interest and other earnings on account assets. Contributions made by an account holder’s employer may be excluded from their gross income in addition to numerous other attractive tax incentives.
Although HSAs can be a practical way to pay for long-term care insurance, not everyone qualifies and even those who do can’t always use the account to pay for premiums. Consumers should speak to their financial advisors about whether or not an HSA is an option for them.
As families across the nation begin to organize their households for fall, it’s important for everyone to have a retirement plan in place that secures their financial future. A long-term care policy can help and with HSAs, even consumers on tight budgets do not have to be without protection. ow.ly/i/2NF1D
Paying for Long Term Care Insurance – Using a 1035 Exchange.
A 1035 exchange is a specific transfer of funds from one life insurance policy, endowment policy or annuity policy with no gain or loss, meaning it is not taxable.
Due to new opportunities resulting from the Pension Protection Act of 2006, annuity owners can also use their non-qualified annuity to pay long-term care insurance premiums tax-free. By using a 1035 exchange, consumers may transfer the value from a life insurance policy into a long-term care policy.
One reason many people move forward with this type of exchange is because their previous policy is outdated or needs revising. Individuals may often be looking to place their policy with a different company. In either case, consumers should make sure the wealth they have built up in the existing policy is not lost.
The exchange should not be more than the single premium of the long-term care policy. Consumers must also pay the difference if the exchange is less than the amount of the single premium.
As families across the nation begin to organize their households for fall, it’s important for everyone to have a retirement plan in place that secures their financial future. A long-term care policy can help and with 1035 exchanges, even consumers on tight budgets do not have to be without protection. ow.ly/nECTB
Do you know about all your LTCI funding options?
Would you like to have long-term care insurance but are worried about how to pay for premium costs? Did you know that there are a variety of funding options like annuities, Health Savings Accounts and more that can help you cover these costs without disturbing your regular budget? Let me run you a quote to show you how affordable long term care protection can be.
What is the price of your dignity?
When Linda Devitt and her brothers bought a long-term care insurance policy for their father, protecting the legacy of the family farm was their core concern.
Devitt, an insurance specialist at Newman Long Term Care in Richfield, Minn., always thought that preserving the legacy of the farm would be the best thing about having long-term care insurance for her father. But when he decided to go into a nursing home several years later, it turns out not having to share his room or bathroom was equally important.
Because he had long-term care insurance, Devitt’s father could afford a private room, unlike many of his friends living in the nursing home whose care was provided by Medicaid.
“The last lesson my father taught me was that dignity is as important at 87 as it is at 67,” Devitt said.
Without long-term care insurance, Devitt’s father would not have been able to maintain his independence and dignity he worked so hard to achieve his entire life. Long-term care insurance allows people to remain self-reliant as they get older. It is a common misconception that Medicare will pay for long-term care needs. In reality, this federal program only covers a small percentage of these costs and does not cover personal or custodial care, which includes helping people accomplish daily tasks such as bathing, dressing and eating.
Dignity is important at any age and should not have to be sacrificed when the need for care arises. Contact us today for a no-cost, no obligation consultation on your long-term care planning options.