Did you know that, statistically, the eldest daughter in a family shoulders the majority of the load of taking care of a parent who can no longer care for him or herself?
Long-term care insurance (LTCi) provides funds to care for a person who has lost the ability to live and function independently. By definition, a person qualifies to receive available long-term care benefits when he or she has lived through a period of 90 days unable to perform 2 out of 6 activities of daily living without assistance, or is cognitively impaired. The activities of daily living are Bathing, Continence, Dressing, Eating, Toileting, and Transferring, and the average claim period is 4-7 years.
Traditional long-term care insurance offers funds specifically tied to care, and allows certain tax-advantages tied to premiums. (Always speak with your tax advisor when confirming how insurance affects your taxable income). Long-term care premiums are not guaranteed and can sharply increase at any time based on statewide claims activity, mortality tables and an insurance company's ability to pay for that use. Many states have created a partnership for Long-Term Care that allows approved products to offer controlled rate increases, as well as additional care benefits such as having an assigned advocate to work with your loved one.
Some life insurance policies now offer an opportunity to use the death benefit early if the insured cannot perform 2 out of 6 activities of daily living. These policies offer an alternative option to have protection in place for people who can’t afford, or qualify for, traditional long-term care policies.
To navigate options and variables available to you to help you take care of your loved ones, should they need assistance with daily living, contact me for an initial phone consultation.