Long Term Care Insurance 6/2010
What is Long Term Care Insurance?
Long-term care insurance is designed to cover a wide range of long-term care services. If you are unable to care for yourself because of a prolonged illness or disability, long-term care insurance may pay for the kind of services you need. Such services may include help with activities of daily living, home health care, respite care, adult day care, care in a nursing home or care in an assisted living facility.
Some long-term care insurance policies qualify for a deduction on both your state and federal income tax returns. You may be able to deduct your premiums from your income taxes in the same way medical expenses are deducted. For more information or to see if a tax-qualified or non-tax-qualified long-term care policy best meets your needs, contact one or more of the following:
- Your insurance agent or company
- Your tax consultant
- The Internal Revenue Service
Do you need Long Term Care Insurance?
Whether you should buy long-term care insurance will depend on your age, health status, overall retirement goals, income and assets. For instance, if your only source of income is a Social Security Benefit or Supplemental Security Income, you probably should not buy long-term care insurance since you may not be able to afford the premium.
On the other hand, if you have a large amount of assets but do not want to use them to pay for long-term care, you may want to buy a long-term care insurance policy. Many people buy a policy because they want to stay independent of government aid or the help of family. They do not want to burden anyone with having to care for them. However, you should not buy a policy if you cannot afford the premium or are not sure you can pay the premium for the rest of your life.
How can I learn more about Long Term Care Insurance?
By phone, you can call the Idaho Department of Insurance Helpline at 1-800-721-3272
Online, go to: http://www.doi.idaho.gov/