Basic principles

| Saturday, July 21, 2012
By William C

The Internal Revenue Service has endorsed a tax incentive with significant ramifications for long-term care insurance. The new proceedings pinpointed in this new code are rather ornate, but in short identify three key assumptions for policyholders and physicians alike. The first is that the incentive allows for premiums to be paid with money that is yet to be taxed. Second, the return of said premiums can be assigned to a given property tax-free. Third, long-term care benefits do not need to be extended to all persons under management. This tax incentive is precisely parallelled with the building cost of health care and the heightened expenditures connection to long-term care.

Examinations show that the annual cost of long-term care averages $ 70,000 with an anticipated growth rate of 5 % per year. This number would be essentially erroneous if long-term care wasn't as in demand as it is today, nevertheless that is not the world we live in. In reality, 70 % of our country's senior citizens over the age of 65 will need some sort of long-term care. The following overview responds to this trend by identifying a unique illustration of long-term care from both a healthcare professional and a patient's point of view.

Part 1, Physicians Perspective:

Physicians and other professions in the medical field are by no means a stranger to the conditions of long-term care insurance. The liability of inopportune results and the expenditures associated with long-term care are extraneous variables that are tough to identify and subdue. This assertion, however, does not mean that a healthcare professional has to be proficient to the complexities of long-term care to shield his/her patients. A longstanding LTC carrier can take care of that for you.

Still, medical professionals often dispute whether or not long-term care is right for both the sake of their practice and their own financial wellness. Of course, risk is a factor, but so is weighing the pros and cons. Take into consideration how patients will respond to the idea of investing in long-term care protection. Some may be hesitating at the thought, but if they know they can rely on it, their trust and allegiance in you as a doctor will be reaffirmed. It's also necessary to consider how the latest progress in health care have affected the supply and demand for medical attention. Customers are living longer and the need for long-term care is by no means slowing down.

Now think about your own monetary health. During the working years, nearly all medical professionals employ disability insurance to shield their compensation. But when that money stops paying off and you leave the professional practice, you still need to protect what you've earned. Long-term care is a means of guarding the assets you've acquired so they can be maintained and passed on.

Part 2, Patients Perspective

In the grand scheme of things, long-term care insurance isn't just selling coverage for aging population needs, its selling peace of mind. This peace of mind is a result of increased quality of life for the policy holder and their loved ones. Additionally, long-term care may be made use of during retirement, but is best obtained prior to then.

Of the most common long-term care misinterpretations is that LTC is the same as nursing home insurance plans. While it is true that nursing homes are a policy option, the site at which the person in need is given care is entirely up to their own choosing.

Attaining long-term care before the age of 50 is by no means infrequent, as half of the four million long-term care policy holders in the US are less than the age of 65. In addition, these policies are unique in that partners and members of the immediate family can share a singular policy. As for costs, the younger you receive long-term care, the less you'll pay in premiums. This is because a younger policy holder is more likely to be healthier. Lastly, long-term care immediately protects your present and future assets.


With increased demand comes increased supply. Many insurance professionals have responded to the needs of the elderly since the long-term care boom circa twenty years ago. Each of these agencies differs greatly in terms of wisdom and quality. Subsequently, physicians direct patients in need of long-term care to the agencies with solid track records built up over years of experience. Long-term Care Financial Partners, or LTCFP for short, is one of the most highly renowned agencies that physicians refer their patients to. Holding branches in most major cities, LTCFP is highly accessible. In addition, there numerous product packages draw the attention of medical professionals and patients across the country. For example, all potential candidates receive a free evaluation session for those interested in adding long-term care to their list of employee benefits. Understanding and professional guidance is the best way to capitalize on a long-term care insurance plan. As the world progresses, the needs of people change; long-term care markets itself to respond to the needs of the elderly and is a win-win situation for physicians and patients alike.

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