An old saying says, "Everything's bigger in Texas." Over 36% of the population of Texas is over the age of 45. For those aged 45 to 65, these are the prime years to prepare for your retirement.
There is a good chance you will live into your 80s and maybe even older. Greater longevity means a greater risk of needing long-term health care. Declining health, mobility problems, memory loss, and general frailty due to aging all lead to needing help with daily living activities or supervision due to dementia.
The costs for all this long-term health care will not be paid by your health insurance or Medicare. Unless you have little or no income and assets, you will be responsible.
Additional Asset Protection
In Texas, one way to preserve income, assets, and legacy is to buy a Partnership Long-Term Care Insurance policy. Texas participates in the federal/state long-term care partnership program. The program, authorized by the federal Deficit Reduction Act of 2005 (DRA) and signed into law by President George W. Bush, gives the states the ability to provide additional asset protection for those who purchase qualified Long-Term Care Insurance policies.
LTC Insurance provides guaranteed tax-free benefits that give you access to your choice of quality care services, including care at home. You won't be forced to spend all your money on care or have your kids become caregivers.
The Texas Long-Term Care Insurance Partnership is a collaborative effort between private Long-Term Care Insurance providers, their authorized agents, and state government agencies, including the Texas Department of Insurance, the Texas Health and Human Services Commission, and the Texas Department of Aging and Disability Services.
Texas participated in the program as an incentive for Texans to plan for their long-term health care needs. Partnership policies have an "asset disregard" benefit, inflation protection, and mandated consumer protections and tax benefits. Insurers must follow state and federal guidelines to sell partnership policies.
For example, if a Texan were to exhaust their benefits in their qualified Long-Term Care Insurance policy, they would have an equal amount of "asset disregard."
If the policy paid $350,000 in benefits, the individual would be able to protect that amount when calculating qualification for Medicaid long-term care benefits. The normal spend-down is $2000, so the individual could shelter part of their estate. In this example, they could protect the $2000 plus the $350,000 and still be able to qualify for Medicaid benefits.
Texas has a website that provides additional information on the Texas Long-Term Care Insurance Partnership program: OWN YOUR OWN FUTURE.
Whether as the result of illness, injury, Alzheimer's or other cognitive impairment, or the normal frailties of aging, you may rely on someone else to help with your daily activities. You may need care temporarily or permanently, either at home or in a residential facility.
The State of Texas
Insurance for Your 401(k)
Affordable Long-Term Care Insurance will safeguard assets like your 401(k), IRA, and 403(b) and reduce the burden extended care places on your family.
The financial costs and burdens of aging will impact you, your family, your savings, lifestyle, and legacy. Long-Term Care Insurance provides the peace of mind that most people want in their future retirement. Plus, a partnership policy provides additional asset protection.
Even a small policy offers significant asset protection at an affordable cost. The time to plan ideally is before you retire as your health and age greatly impact premium and available options. Most people obtain coverage in their 50s.
Most states have partnership Long-Term Care policies. Without Long-Term Care Insurance, you will pay for most of your care out-of-pocket. Traditional health insurance, Medicare, and supplements will only pay for a small amount of skilled care.
The U.S. Department of Health and Human Services says about half of us will need long-term care services after age 65. This means this is a considerable risk to your lifestyle and legacy. Most states have reciprocity with other states' long-term-care partnership programs, including Texas. If you move from or to Texas, your partnership asset protection follows you as well.
Texas does not offer any state tax incentive for qualified long-term care insurance as there is no state income tax. However, federal tax incentives are still available. LTC NEWS shows you which states have partnership programs and the available tax incentives available - Compare State's Long-Term Care Details | LTC News.
Partnership Long-Term Care Insurance is one of the biggest kept secrets in retirement planning. Keep in mind; however, long-term care planning is more than just about money. An LTC Insurance policy gives you access to the quality care you deserve and eases the stress and anxiety otherwise placed on your family.
An old saying says, "Everything's bigger in Texas." Over 36% of the population of Texas is over the age of 45. For those aged 45 to 65, these are the prime years to prepare for your retirement. There are tax advantages when you own your own business, including deducting the cost of Long-Term Care Insurance. Setting up an LLC in Texas can be a great way to begin this entrepreneurial journey by providing you with appropriate business structure and tax benefits.
About the Author
An LTC News author focusing on long-term care and aging.
Contributor since August 21st, 2017
People require long-term health care due to declining health, mobility issues, memory loss, and the general frailties of aging. About half of us will need care before we die. Care costs are exploding and will adversely impact your family and finances.
For many people, affordable Long-Term Care Insurance is the solution. Most of us have a desire for quality care and choice. When you own an LTC policy, you will have a solution. You will have access to your choice of quality care services, including care at home.
Safeguard assets, ease family stress and anxiety, and give your loved ones the time to be family instead of becoming your future caregiver. Most people obtain coverage in their 50s.
Planning Tools and Resources Available on LTC NEWS
Planning for the future is never easy, but long-term health care planning can be very complicated and comes with many emotions. Getting the right tools and resources will make the process much easier.
One of the goals is to reduce the stress and anxiety usually placed on your family at the time of crisis. LTC NEWS can be beneficial in providing you with important information for you to consider.
LTC NEWS has put in place several resources, including:
The LTC NEWS Cost of Care Calculator will show you the current and future cost of long-term health care services where you live. Plus, each state has vital state-specific information you should know - Cost of Care Calculator - Choose Your State | LTC News
The Ultimate Long-Term Care Guide is an outstanding read to help you get a good overview of the topic area.
Compare the major insurance companies that offer Long-Term Care Insurance products here - Top Insurers for Long-Term Care Insurance | LTC News.
A detailed tax guide that includes available tax incentives can be found by reviewing the Long-Term Care Tax Benefits Guide.
Find all the resources on LTC NEWS - Resources for Long-Term Care Planning | LTC News.
Seek Professional Help Planning for Long-Term Care
Experts recommend seeking the help of a qualified and experienced Long-Term Care Insurance specialist to help you find the right coverage. A specialist will match your age, health, and family history with the right coverage at the right price.
Long-term care is a very specialized area, and few insurance agents and financial advisors have the expertise. Find a specialist who represents the top companies as premiums can vary over 100% between insurance companies. Leading specialists will often have over 500 clients with Long-Term Care Insurance.
A specialist will save you money, and you will have peace of mind knowing they are making the appropriate recommendations - Work With a Specialist | LTC News.
Need Help Now for Mom or Dad?
If your family is already in crisis and you need to find help for mom or dad, LTC NEWS can help. We have put together several comprehensive guides to help you in your process.
Start by reading our four guides -
If your loved one is lucky enough to own a Long-Term Care Insurance policy, be sure they use it. Sometimes families wait, thinking they can save the benefits for a rainy day. Waiting on using available Long-Term Care Insurance benefits is not a wise idea.
Get Assistance in Filing a Long-Term Care Insurance Claim
Many insurance companies have issued Long-Term Care Insurance policies over the years. Filing a claim can sometimes be complicated unless you know what to do or get expert help and assistance.
Don't allow the claim process to stop you from using the benefits available in an LTC policy. Quality care obtained early will help provide a better quality of life and reduce the risk of a deep decline and facility care.
If you need help in starting the process of a Long-Term Care Insurance claim, LTC NEWS can help. LTC NEWS provides free assistance with no obligation to help you or a loved one complete the claims process with a Long-Term Care Insurance policy. We have teamed up with Amada Senior Care, who will do all the work - free with no obligation.
Get help finding quality caregivers or long-term care facilities and get recommendations for a proper care plan, whether a person has a policy. - Filing a Long-Term Care Insurance Claim | LTC News.
Advantages of Reverse Mortgages
Today's reverse mortgages for those aged 62 and older could be an ideal resource to fund a Long-Term Care Insurance policy OR even provide money to pay for care if you, or a loved one, already needs help and assistance. You might be eligible at younger ages as well.
Some people have much of their savings invested in their homes. With today's reverse mortgages, you can find ways to fund care solutions, care itself, and even help with cash flow during your retirement.
Learn more by asking questions to an expert. Mike Banner, LTC NEWS columnist and host of the TV Show "62 Who Knew" will answer your questions regarding caregiving, aging, health, retirement planning, long-term care, and reverse mortgages.
- Just "Ask Mike." - Reverse Mortgages | LTC News.
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You can write a story or ongoing column for LTC NEWS. You can write about many topics, including aging, caregiving, health, lifestyle, retirement planning, and long-term care, to name a few.
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