Long-Term Care Insurance Preparation and Options

Part 4, Chapter 14: Specialized Situations: Coverage for Long-Term Care Page 5

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Long-Term Care Insurance

The lack of universal health insurance coverage for long-term care, the Medicaid eligibility requirements, and the movement toward maximum independence for all people with illnesses or disabilities, makes careful planning for long-term care essential. That planning should begin as early as possible, long before a health emergency or crisis develops. In addition, since plans for long-term care may directly involve family members, and may affect taxes, wills, and a variety of other related issues, such planning should include discussions with family members, a financial advisor, and an attorney.

One aspect of that planning should be to consider the possibility of purchasing a long-term care insurance policy. Such policies are designed to provide coverage for long-term care either in the home or in a specialized facility -- under certain conditions.

The federal Portability and Accountability Act has triggered renewed interest in long-term care policies. The act includes a provision that may make it possible for premiums for such policies to be considered partly tax deductible in some cases. However, long-term care policies must meet certain federal standards in order to qualify under the provisions of the Portability and Accountability Act.

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