ASK & WE ANSWER
FREQUENTLY ASKED QUESTIONS
Frequently Asked Questions
Over the last 20 years I have heard many of the same questions from the thousands of consults that I have provided. Here is a list of the most common questions and answers. Please reach out if you have a question that is not posted on this page. Very best, John
An LTCi plan at work offers these advantages:
1. Differentiate yourself in recruiting among competitors. 2. No additional cost for company (completely voluntary). 3. Premium paid by employees or company is tax deductible. 4. Having an LTCi plan in place will prepare your employees for an extended care need in their family and this will reduce absenteeism. 5. Payroll deduction makes paying premium easy. 6. Reward key employees with a company paid LTCi plan. 7. 70% of your employees will have an LTC need after 65. What protects their retirement? 8. Caregiving employees cost $13 billion in additional healthcare expense to businesses each year. 9. Significant discounts for your employees and their family. 10. Gender Neutral Rates! Literally half-off for female applicants. 11. Secure simplified underwriting for employee and spouse. 12. Work with CLTC experts who specialize in LTCi plans. 13. This plan is fully portable if you leave/retire.
First of all, let me state: we are not CPAs or tax attorneys. You need to speak with your tax representative about your specific set of circumstances. However, we do know that thirty states have either a provision to deduct long term care expenses or give a tax credit. There is also a Federal tax benefit. Take a look at our LTC Tax Guide and see how your state treats LTCi plans.
You may never be more insurable than right now. Premium is based upon age at time of application and benefit selection. We have missed several potential applicants by a matter of weeks after they were diagnosed with an uninsurable condition. Basic fact: the younger you are when you apply, the less expensive it will be and the more likely you are to get coverage. You buy this policy with your health as much as actual premium.
Comparatively speaking…not much. You are much more likely to have an LTCi claim than have a full replacement of your home and all of your valuables on a homeowner’?s claim, but the rates (and claim cost) are very similar. Since rates are based upon age at application and benefits selected, they will vary greatly. We help our clients find a balance between the premium they are paying and the benefit protecting their assets and family.
Modern LTCi policies are designed for the rates to remain stable, but realize carriers are legally prohibited from guaranteeing their rates forever. Since the NAIC passed the Rate Stabilization Model in the mid 2000’s (and most states adopted) carriers have held rates very constant.