March 22, 2012

Finding Ways to Pay for Increasing Long-Term Care Premiums

by Kantor & Kantor LLP

We are always quick to advise friends and clients that even though you may have to fight for long-term care insurance benefits when you need them, it is still wiser to invest in a good policy rather than rely on Medicare to cover all your long-term care expenses. Because it won’t. So what should you do now that several of the LTC carriers have stopped selling insurance, and worse, the 2012 National Long-Term Care Insurance Price Index shows LTC premiums have jumped from 6 % to 17 % since 2011? Fox News and Insurance.com offer a few considerations that may help you save on LTC Insurance. See, “Tips for Buying Long-Term Care Insurance Amid Rising Rates,” http://www.foxbusiness.com/personal-finance/2012/03/16/tips-for-buying-long-term-care-insurance-amid-rising-rates/.

First, you should comparison shop. The cost for similar policy may vary as must as 132%, says the American Association for Long-Term Care Insurance. Always ask experts, though, to make sure you are purchasing the insurance from a reliable company. Second, buy young when you are healthy. Costs increase as you age. Third, talk to your tax adviser about federal tax deductions that allow you to deduct LTC premiums as medical expenses. Fourth, consider buying a hybrid life insurance policy that also functions as a LTC policy if you need help for long-term care expenses.

If you are considering cancelling a LTC policy because of rising premiums, you may want to contact your insurer to negotiate a better rate or different coverage. That policy may be your only safety net if you become sick or disable after you retire. And then, if you have to fight for your long term care benefits, call Glenn Kantor, Esq., or Corinne Chandler, Esq. or Alan Kassan, Esq. at Kantor & Kantor (800) 446-7529. We can help.