Safeguarding Clients from Long-Term Care Costs

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Published: Jul 12th, 2015
Safeguarding Clients from Long-Term Care Costs
Article Updated:September 21st, 2019

UPDATED September 21, 2019

Many financial professionals must deal with the impact long-term care will have on their client's savings, investments, and future retirement income. Today, many are seeking help from qualified Long-Term Care Insurance specialists to help shop and design affordable coverage.

A recent article in Accounting Today, a trade publication, suggests CPA's deal with their client's financial threat of the high costs of long-term care.

The article, says having a long-term care insurance contract "will not only provide their client with the dollars necessary to pay for some or all of the expenses associated with their care but will provide them with independence and peace of mind, knowing they’ll never be a burden to their kids or spouse".

 Henry Montag, an independent Certified Financial Planner from New York, written by

Montag also notes an individual may be able to deduct the entire premium or a part of it. At a minimum, most states have a 20 percent state tax credit for any individual. This is also one of the few times that an insurance benefit can be paid for on a totally discriminatory basis, i.e., for all officers and spouses, and then be taken as a 100 percent deduction in various corporate settings.

"In my opinion, a client should consider purchasing a long-term care insurance contract in their mid to late 50s when their youth and good health will allow them to purchase this valuable protection at a lesser cost."

Henry Montag

A comment on the online article from a Long-Term Care Specialist says, "Most states have partnership programs available which provide dollar for dollar asset protection if you have a qualified policy."

The Long-Term Care Partnership Program is a collaboration between the state government and insurance companies. Under this partnership, applicants who purchase qualifying long-term care insurance policies can access Medicaid coverage while retaining assets they would normally be required to spend on their long-term care. This is referred to as dollar for dollar asset protection.

The comment goes on to say, "This, for many people, is a very important added benefit along with case management and other services that make affordable Long-Term Care Insurance policies very valuable. Many people should make this part of their retirement plan."

They add that premiums are very affordable if designed appropriately by a specialist who understands how these plans work.

Experts suggest the best time to plan for the financial costs and burdens that longevity brings is before an individual retires when they still have fairly good health and can take advantage of much lower premiums. Start researching long-term care planning options by reviewing the LTC NEWS resource page by clicking here. It will provide expert information so you can safeguard a client’s (or your own) retirement accounts from the expensive cost of care. However, long-term care planning is not just about money. A long-term care event is a family event and impacts the spouse, children and their families. Make aging easier on everyone and ensure that there is choice of quality care in the setting they desire.

 

LTC NEWS cost of care calculator. Find your state and see the current and future cost of long-term health care. Plus, you will see additional information including state-specific tax incentives and more. Click here to find your state.

Often, financial professionals can worked with a skilled Long-Term Care Insurance specialist to help their clients find the best coverage at the best value. They should represent multiple insurance companies, understand how the Long-Term Care Partnership Program works, and have extensive claims experience. A qualified specialist will know how to design a very affordable plan which matches your age, health, finances, and goals.  Find a qualified specialist by clicking here.

LTC News Contributor Linda Maxwell
Linda Maxwell

Contributor Since
January 1st, 1970

Former journalist who now enjoys writing about topics she is interested in.

About the Author

Linda is a former journalist who now enjoys writing about topics she is interested in so she “can keep her mind active and engaged”.

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