Lets Talk Long Term Care Insurance (LTCI)
- Shivani Munjal
- Mar 27
- 2 min read
Did You Know? According to the U.S. Department of Health & Human Services – Long-Term Care, nearly 70% of people turning 65 will require some form of long-term care in their lifetime. Despite this, many individuals and families overlook one critical component in their financial and care planning: Long-Term Care Insurance (LTCI).
Whether you're planning for yourself or helping a loved one prepare for the future, understanding the fundamentals of LTCI is essential.
Key Features of Long-Term Care Insurance (LTCI)
1. Care Options That Fit Your Lifestyle
LTCI provides coverage in a variety of settings, including:
✔️ Assisted living communities
✔️ Memory care facilities
✔️ Nursing homes
✔️ Home care services (ideal for aging in place)
2. Daily or Monthly Benefit Amounts
Policies offer a set amount per day or month for care services. It’s important to select a benefit amount that reflects the cost of care in your area.
3. Elimination (Waiting) Periods
Most policies include a 30, 60, or 90-day waiting period before benefits begin. During this time, care costs are paid out-of-pocket. A shorter waiting period often comes with higher premiums.
4. Coverage Duration
LTCI can offer coverage for 2, 3, or 5 years—or even lifetime coverage. Total benefit amounts vary by policy.
5. Inflation Protection
Healthcare costs are rising. Inflation riders (simple or compound) help ensure your benefits grow over time to keep pace.
6. Eligibility for Benefits
To qualify, policyholders generally must be unable to perform two out of six activities of daily living (ADLs)—such as bathing, dressing, or eating—or have a cognitive impairment like Alzheimer’s.
7. Spousal Sharing Options
Shared benefit riders allow spouses to pool their benefits, providing extra flexibility if one partner requires more care.
8. Tax Benefits
LTCI premiums may be tax-deductible, depending on age and tax status. Additionally, benefits received are usually non-taxable income.
Is LTCI Right for You?
LTCI is a powerful tool for protecting your financial future and ensuring access to quality care. However, policies can be complex, and costs vary based on age, health, and coverage options. Working with an expert in senior care planning can help you navigate your options and choose the best policy for your needs.
We’re Here to Help—Let Us Guide You
Navigating long-term care insurance doesn’t have to be overwhelming. Whether you're planning for yourself or a loved one, we're here to answer your questions, clarify your options, and help you make confident, informed choices.
Let us be your partner in planning for a future filled with care, comfort, and peace of mind.
The information provided here is for informational purposes only and is not intended to constitute medical, legal, insurance, financial or any other professional advice.
