Life Disability Long Term Care

Long Term Care

The total risk of a 65 year old entering a nursing home at some point in life is 49%; nearly one in every two people. Long-Term Care: Knowing the Risk, Paying the Price, Health Insurance Association of America, 1997.

Tax Qualified Long Term Care Insurance

Long Term Care Policies Intended To Qualify For Federal And State of California Tax Benefits vs. Non-Qualified Long Term Care Insurance

Long Term Care Policies That Meet California Standards And Are Not Intended To Qualfiy For Federal Or State Of California Tax Benefits But Which May Make It Easier To Qualify For Home Care Benefits

If you ahve questions about the potential tax impacts of these two types of policies, you may wish to consult a tax adviser before deciding which type of policy you wish to purchase.

Under the Health Insurance Portability and Accountability Act of 1996, long term care isnurance policies that meet certain requirements may qualify you for federal and state tax benefits. Such policies are known as Qualified Long Term Care Insurance policies. FutureSelect(sm) is available as either a Qualified or Non-Qualified Policy.

Ten Questions To Ask My Agent About Any Long-Term Care Policy I Consider Buying
  1. Does the policy cover assisted living?

  2. Does the policy have 5% compounded inflation protection?

  3. Has the compnay ever raised premiums on any long-term care policies they sold?

  4. Does the policy have a premium waiver? When does it begin? Does it apply to all of the benefits in the policy? Does the company refund any of the annual premium I paid in advance?

  5. Do I have to satisfy the elimination period more than once?

  6. If Home Care is a covered benefit, is care management a benefit of the policy? Is the cost of care management decucted from my maximum benefits?

  7. Does the company use their own care manager or can I choose my own?

  8. Does the policy include a nonforfeiture benefit? If so, how does it work?

  9. Did my agent explain the side-by-side comparison and the Personal Worksheet?

  10. Is my agent authorized to sell me either an individual policy or a "Partnership" policy?

Note: For information on a joint venture between the State of California and certain selected insurance companies, read the next secont on the California Partnership for Long-Term Care.