When a loved one needs Elder or Long Term Care it can be frustrating to find answers.  Because of this www.LifeInsuranceThinkTank.com has put together a short list of expert resources for you to build your knowledge and understanding of the assistance that is available to you.  By all means, this list of 7 web sites is not a complete list.  Each site links to other resources and agencies it will help you begin to find the information you need to answer the questions you will have.

To See the full list CLICK HERE

www.benefitCheckUp.org

A free online site maintained by the National Council on Aging.  Here you can enroll in federal, state, local, and private programs to receive aid to help pay for some health care, some living expenses, and several other needs. It lists over 1500 public and private benefit programs from all 50 states.

www.eldercare.gov

A service provided by the National Association of Area Agencies on Aging that will help you find information on state and community resources for older persons and caregivers.  800-677-1116.

www.caregiver.org

A well maintained site with information for caregivers. This site offers information, resources, and support for family caregivers of older or disabled adults. It is searchable by state to identify programs, legal resources, and specific disability organizations.

www.nahc.org

The National Association for Home Care trade site for home health care agencies, hospices, home health care aides, and medical equipment suppliers. There is a complete section that will help a consumer search and choose a local home care provider.

www.nhpco.org

This is run by the largest non-profit hospice and palliative care organization, The National Hospices & Palliative Care Organization. Tons of information and links to additional resources that will help find a local hospice provider.

www.aoa.gov

This is the U.S. Department of Health and Human Services web site for the Administration of Aging. Here you can find numerous publications, news, and information for older adults.

www.alz.org

This is the National Alzheimer’s Association web site providing information and support services to families and individuals dealing with Alzheimer’s disease.

Please continue to educate yourself in any way you can to find the best care for your loved ones as they need elder or long-term care.  Life Insurance Think Tank does not endorse this list as the only web sites available to assist you in finding help and education for your specific needs.

According to the Internal Revenue Service, tax-qualified LTCi premiums are considered a medical expense. For individuals who itemize tax deductions, medical expenses are deductible to the extent that they exceed current amount required to meet the individual’s Adjusted Gross Income (AGI). 

The amount of the LTCi premium treated as a medical expense is limited to the eligible premiums, as defined by the Internal Revenue Code 213(d), which is based upon the age of the individual. You are able to take up to the limit defined by your age as the medical expense.

Individual taxpayers can treat premiums paid as tax-qualified LTCi for themselves, their spouse, or any tax dependents as a personal medical expense.  See the table below for the yearly maximum deductible limit per individual policy owned.

2013 Long Term Care Insurance Federal Tax Deductible Limits

Source: IRS Revenue Procedure 2012-41

Many people who do their own taxes may be unaware of this deduction.  It’s also common for many people to wait to discuss long-term care insurance until they have health risks preventing them from qualifying for coverage.

The best time to buy Long-Term Care Insurance is when you are healthy and young.  The younger you are the less expensive it will be.  With the newer insurance products available, there are numerous other types of products that provide long-term care protection.  No matter what your age, any licensed Retirement Life Solutions Specialist can discuss your options and provide the best solution for your specific situation.

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The information presented in this article is not offered as tax advice. Examples of tax benefits shown are based upon the United States IRS Code listed. You should consult with a professional tax advisor regarding your specific situation.

What are the chances in your lifetime that you will need some form of long-term care medical assistance either in at an in-patient facility, part-time during the day, or even at home? If you were to need long-term care, would you be covered? Most people would not. 

The great majority of Americans today have the false perception that they will never need long-term care.  However, according to current statistics, 70% of those of you over 65 years of age will need some form of long-term care at least once in your lifetime.  An additional 43% of you will spend some time in a long-term care facility with 21% of you staying in that facility 3-years or longer.¹  Finally, 43% of those in the U.S. needing long term care today are under age 65².

So while your expected perception may be that you won’t ever need long-term care, the facts suggest otherwise.  To make matters worse, today it costs about $78,000 annually for a private room in a long-term care facility.  What will it cost 20, 30, or 50 years from now?

Once someone enters a long-term care facility, the average married couple exhausts their savings after just 13 weeks. Within two years, 90% of those married couples will be bankrupt.

But what about Medicare and Medicaid, won’t they help?  Medicare only pays for long-term care if you are admitted to the facility within 30-days after a hospital stay of at least 3-days.  Then only the first 20 days are covered at 100%.  During days 21-100 you pay $144.50/day ($11,415).  After 100 days, Medicare will not pay anything towards your long-term care needs.

Medicaid on the other hand is even more difficult to get coverage. To get Medicaid coverage you must be impoverished by your state’s definition.  Commonly you can’t own any assets except for your car and your home.  Even then the home is “seconded” to the state Medicaid program to pay back the money that is “loaned” to you to pay for your long-term care assistance.  This money is not a gift and must be repaid out of your estate.   Obtaining Medicaid coverage for long-term care should be discussed with a tax advisor because of the numerous laws and rules that are could cause Medicaid coverage to be prohibited.

What are your options?

The best option is to buy Long-Term Care Insurance to protect your assets when you are healthy and young.  The younger you are the less expensive it will be.  Besides traditional long-term care insurance, there are numerous other types of products available to you to help protect your assets.  No matter what your age, any licensed Retirement Life Solutions Specialist can discuss your options and provide the best solution for your specific situation.

Your long-term care costs can present a significant challenge to your family.  By planning in advance you can protect your assets and more importantly, you can protect your family from serious financial and emotional burdens.

1. 2012 Field Guide, National Underwriter

2. National Care Planning Council, retrieved here, Accessed 1-20-13

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