Long-term care insurance can help cover the expenses of a nursing home, assisted living facility, in-home care, and certain other long-term care expenses for an aging person who can no longer perform certain tasks of daily living. There are many advantages of having long-term insurance care such as:
- Lessen the financial burden on family
Many families struggle to afford long-term care for aging loved ones and deciding which family members can and should pay for care can cause ongoing strain. Long-term care insurance can help lessen this stress by covering at least part of the expenses that occur later in life, so family members don’t carry as much of a financial burden.
- Provides peace of mind
Knowing you have a policy in place to cover aspects of long-term care like a home health aide or a stay in a nursing home or residential facility can help you rest easy. Peace of mind as you age isn’t something you can quantify financially, but it can make a huge difference as you juggle the other realities of aging.
- Save on taxes
There are several tax incentives by state and federal governments to encourage the purchase of long-term care insurance. Many states offer tax credits and tax deductions. Federal tax incentives include allowing the use of health savings accounts (HSAs) to pay long-term care premiums, a tax deduction for premiums paid by employers or self-employed individuals, and a tax deduction for long-term care expenses equating to over 10% of your income. It’s best to consult with your tax advisor for additional information.