Long-Term Care Insurance Provider
Financial support to reduce the cost of caring for yourself when you no longer can.
What people are saying
I have known Bob and his crew for many years. He is a true professional, but is also a down-to-earth kind of guy.
He and his team make you feel comfortable when in meetings, or when on a phone conversation.
I have full trust in his advice and financial planning for me.
Thank you Langan Financial Group.
What is Long-Term Care Insurance?
Long Term Care Insurance is an insurance policy that provides financial assistance to the policyholder for daily care. Policies vary according to:
- What they will cover
- The requirements to trigger a policy
- How much financial assistance a day they will cover
These services can include:
1. In-Home Care
- These services include homemaker services and home health aide.
2. Community and Assisted Living
- These services include adult day health care as well as Assisted living facility homes.
3. Nursing Home Facility
- These services include a semi-private room and a private room.
Is Long-Term Care
Insurance Worth It?
Long-term Care Insurance is worth considering, especially if you have the funds available for it. Unfortunately, health insurance does not cover long-term care and Medicare only covers limited home or nursing home care, increasing the need for a long-term care plan.
According to the Administration for Community Living, part of the U.S. Department of Health and Human Services, in 2020 nearly 70% of 65-year-old people will need long-term care services or support.
Men average 2.2 years of care, while women average 3.7 years.
There is a good chance someone you know will need long-term care. Depending on their needs, it may be financially beneficial to have an insurance plan. Unfortunately, you will not know that until it is too late.
While it can be expensive, long-term care insurance does have tax advantages available if you itemize your deductions.
You can count part or all of your long-term care insurance premiums as medical expenses for Federal taxes and some State taxes as well. Include 2021 federal tax deductible limits for long-term care insurance.
Is Long Term Care Tax Deductible?
Long Term Care Insurance has both tax-qualified polices and non-tax qualified policies.
The federal government allows individuals to claim a portion of the premiums as a medical deduction for tax qualified policies.
To do this, individuals must itemize their:
- Taxes
- Medical
- Dental expenses
In addition, these expenses must exceed 7.5 percent of your adjusted gross income.
However, benefits received from a tax-qualified long term care policy are treated as not taxable.
What is a Tax Qualified LTC Policy?
Tax qualified long term care policies must adhere to specific requirements. It must offer an individual:
- Inflation protection
- Nonforfeiture protection
These clauses do not have to be purchased by an individual.
However, it offers protection against inflation and loss of full benefits if you stop paying premiums after a certain number of years.
When Should I Consider Long-Term Care Insurance?
Long-term care insurance is one of those items that are better to purchase earlier than later. The difficult part is knowing if you will need it or not.
Because it is unknown if you will use it, it is easy to push off, especially if you are in good health.
The difficult thing with insurance is, that when you are healthy, you will be able to get it, but you will not need it. It is when you are unhealthy you will need it, but may not qualify or it will be extremely expensive.
The earlier you can purchase long-term care insurance, the cheaper it is likely to be because you are likely to be healthier.
Even if you cannot get the perfect coverage, some coverage is better than nothing and it may be more affordable than you think.
Long-Term Care Insurance Cost
You will not be surprised to hear the Long-Term Care Insurance cost varies depending on numerous factors including:
- Age
- Health
- Gender
- Type of plan
Because of the varying criteria used to assess long-term care costs, the price can vary widely.
Long-Term Care Insurance Cost Example
The American Association for Long Term Care Insurance conducted a price index survey with leading insurers in 2022, which helps provide insight into the variation of costs for different types of policies, health levels, and ages.
Single male, age 55 with "select health" (not as healthy as preferred health) long-term care premiums ranged from $950 to $3,685 a year.
This is $79.17 - $307.08 a month for a $165,000 benefit with varying benefit growth adjustments year over year. In addition, if you are healthier, you will have a reduced premium.
For a single female, the same benefit ranged from $1,500 - $6,400 a year or $125 -$533.33.
There are numerous charts from their survey, but the one we included analyzes the cost at the age of 55 vs. age 60.
Long Term Care Insurance can be expensive, especially depending on your health, age, and needs. The earlier you look into Long Term Care Insurance, the cheaper it is likely to be.
Long-Term Care Insurance vs. Disability Insurance
Long-term care insurance focuses on providing daily care to an individual at any age. It focuses on providing payment for daily living assistance.
Long-term disability insurance provides income replacement for a portion of your income typically until normal retirement age. It does not provide benefits after your retirement age.
Assessing Your Long-Term Care Insurance Needs
It is always worth a conversation to get an insurance quote because, in the best-case scenario, it is more affordable than you thought.
If it is too expensive or you do not qualify, then the conversation does not cost you anything.
Give us a call to discuss your situation and work together to understand your needs.
We can run free quotes for you to see if it is worth pursuing, it may be more affordable than you think.
Long-Term Care Insurance Agent
Working with a local long-term care insurance agent is an important decision that can impact not only your future but your family.
When deciding what insurance agent to work with, be sure the company is an independent agency that does not require specific quotas or products for their advisors to sell or meet.
You want an advisor that can understand your needs and find a product that meets your requirements rather than a suboptimal product.
When it comes to insurance, there is no one product that fits all. Each person's case should be discussed to understand:
- What are your goals?
- What is your situation?
- What are your obstacles?
- What plan aligns best to overcome your obstacles and achieve your goals?
Chat with a Long Term Care Insurance Agent
Langan Financial Group's insurance agents have over 100 years of experience servicing insurance policies for individuals and families.
Give us a call at 717-288-1880 to see how our local agents can help with your insurance policy needs. Or visit our long term care insurance agent contact page to fill out an inquiry.
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Disclosure: Check the background of your financial professional on FINRA's BrokerCheck. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Cambridge and Langan Financial Group, LLC. are not affiliated. Cambridge Investment Research Advisors, Inc. a Registered Investment Advisor. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC, to residents of: AL, AZ, CO, DE, FL, GA, IA, KY, MD, NJ, NM, NY, NC, OH, PA, TX, VA, WI Cambridge and Langan Financial Group does not offer legal advice. Estate planning services are in regards to your overall financial plan. Always be sure to speak to a legal professional in regards to specific legal matters. Fixed insurance services offered through Langan Financial Group.
Testimonial/Endorsement Disclosure: The testimonials may not be representative of the experience of other customers. The testimonials are no guarantee of future performance or success. All of the testimonials/endorsements are clients with the exception of Steven Martinez of York SPCA. There was no cash nor non-cash compensation for any of the testimonials provided.
© Langan Financial Group
Harrisburg, PA Office
Address: 1863 Center St, Camp Hill, Pa 17011
Phone: 717-288-1880
York, PA Office
Address: 3405 Board Rd, Suite 200, York, Pa 17406
Phone: 717-773-4085
