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Long Term Care Insurance:
Prepare for the Long Haul

Long term care is not something many of us like to think about, so it becomes something that can be unexpected and unpleasant. We may not want to think about long term care insurance, but it will make the often terrifying and upsetting thoughts about caring for an ailing loved one over a significant period of time a little less troublesome.

When your loved one is in need of long term care insurance, your world may feel like it is turning upside down. The language caregivers use is foreign and there are a lot of concepts to take in. However, planning early with long term care insurance will help you have a basic understanding of the new world into which you are walking.

Long term care insurance may not seem that important when you are younger, but consider the new statistics. By 2020, one out of every six Americans will be over 65, making 32 states have populations similar to Florida today. By 2050, 40 percent of all 65 year olds will live to 90. Don’t think that statistic is significant? In 1980, only 25 percent of 65 year olds lived to 90. By 2030, there will be 70 million people over the age of 65, and since the numbers are going to increase, you may want to consider long term care insurance so that you are guaranteed more quality care as you get older.

With the significant decreases in pension benefits, only 35 percent of today’s workers can expect their pension to be a primary source of income, and Social Security will not have enough money to pay benefits beyond 2036. This decrease in pension benefits is another reinforcement for long term care insurance. Another reinforcement for long term care insurance is understanding that the cost of long term care ranges from $15,000 per year to over $200,000 per year. These costs are expected to double within 15 years, so without long term care insurance, you can go through your retirement budget quickly, burn thorugh your savings, burden your family, or impoverishing your spouse to pay for your long term care.

To help out those that want to plan for their future with long term care insurance, federal and state governments have begun offering significant incentives so that long term care insurance becomes more affordable. A portion of long term care insurance premiums may be tax deductible or eligible for tax credits. Also, businesses that offer long term care insurance for employees in their health insurance benefits may even write it off as a business expense. Long term care insurance premiums paid by employers may not be counted as income for employees, and most of the benefits you receive from your long term care insurance are not taxable.

When you are looking to add long term care insurance to your health insurance plan, you want to make sure you find coverage that will help you maximize your choice, financial control, peace of mind, and enjoyment of your retirement while minimizing the disruption to your family, stress from care giving, and dependence on your children for assistance. Your long term care insurance should also be there to protect your assets, too. Therefore, make sure you shop around to find the best long term care insurance at the most affordable rate so that you are protected and cared for when you need it most.

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