October is Long-Term Care Planning Month. It’s a time to evaluate what your needs may be so you can take proactive steps to ensure they’re met in the future. This insurance generally covers costs not covered by health insurance, Medicaid, or Medicare, such as assisted living. Below are a few surprising facts about this coverage that may influence the decisions you make moving forward.
Need-to-know information about long-term care insurance
It’s not just for the 65+ crowd
Anyone can purchase long-term care insurance. But there are eligibility requirements that must be met before a policyholder can begin receiving benefits. While they differ from company to company, they typically center around Activities of Daily Living (ADL) and cognitive impairments. These include the inability to complete basic actions like: eating, bathing, dressing, and more.
While some aging-associated diseases, like Alzheimer’s disease, cause certain ADLs to become difficult, so can chronic diseases, like Parkinson’s disease, or a disability. These conditions can occur at any time, making long-term care insurance important for many individuals under the age of 65.
Most people will need it
While retirees aren’t the only people who qualify for long-term care insurance, they do make up the biggest pool of insurance holders. In fact, 70% of people over the age of 65 will need a form of long-term care during their lifetime.1 For this reason, it’s important to factor this cost into calculations of how much you’ll need in retirement.
Women typically need care for longer
Women are documented to live longer than men and are therefore more likely to need long-term care insurance in their later years of life. In 2020, American women over the age of 65 were half as likely to live alone than their male counterparts.2 Living alone and managing age-related conditions may create an increased need for care among this population. In fact, women account for 64% of long-term care insurance claims.3
Filers may be able to deduct the cost
Tax filers who itemize their deductions may be able to deduct expenses paid for medical and dental care. This includes what you would expect, like doctor’s visits and prescription drugs, but also long-term care insurance premiums! Note that tax filers can only deduct the amount of medical expenses that exceed 7.5% of their adjusted gross income (AGI). Visit IRS.gov to learn more.
If you’re interested in this type of insurance coverage but have never found the time to purchase a policy, make it happen this Long-Term Care Planning Month. General Electric Credit Union (GECU) members have access to Investment Services, available through CUSO Financial Services, L.P. (CFS),4 to help them make sound decisions about coverage. Not a member yet? If you live, work, worship, or attend school in select Ohio, Indiana, or Kentucky counties, you can bank with us! In addition to great rates and low fees, our members also enjoy a no-cost consultation with one of our CUSO Financial Advisors. Don’t put your peace of mind on the back burner–schedule a consultation to talk through your options in retirement!