Long Term Care Planning is especially important for women. Women are often impacted as providers of care, and ultimately, as recipients of long-term care.
No one wants to be a nurse or a purse.
Women live longer than men. As a result, women are likely to reach an age when they would need long-term care.
Women are more likely to play caregiver.
Women are more concerned that their adult children will be burdened with the emotional and financial responsibility of caring for them. Mothers, do not let your daughters grow up to be caregivers!
Many of our clients are women near or over the age of 50 and are experiencing life transitions- empty nests, semi or full retirement, divorce, loss of spouse, etc. In each transition, their financial well-being is a defining issue. Planning today for longevity and independence will have a profound influence on their future.
Long Term Care is the largest unfunded risk and threatens to disrupt assets, income stream and independence.
While women intuitively understand caregiving and the demands of being a caregiver; financial, physical and emotional, many have yet to plan.
On average, women live seven years longer than men- average life expectancy is now 88. Once a person reaches age 80, there is an 80% chance they will need long term care in their lives.
Planning for longevity risk is planning for choice and independence. As independent women, we want choices – who, where and how care is provided. Long Term Care Insurance provides a separate “ pool of money “ for care costs.
Long-term care insurance is not nursing home insurance. It means choice of care in any environment. “Aging in Place” is today’s paradigm – staying home and in the community, but can be used in any environment that provides care. Long-term care insurance plans are comprehensive and portable anywhere in the U.S.
Having a long-term care insurance plan, independent of your retirement nest egg will allow you to maintain lifestyle and legacy commitments and act as a firewall to sibling rivalry and other possible blended family issues.
The “key to the castle” is good health with conditions that are “stable and resolved”.
Underwriting varies by carrier; each has “sweet spots” for age, health, and medications. Women who have had a history of breast cancer and stable for 1-3 years are insurable at standard rates. Bone density scores are also important from an underwriting perspective. Osteopenia is insurable while significant osteoporosis may not be.
It is critical to work with a LTC Insurance specialist since plan designs, pricing and underwriting vary widely…explore the breadth of possibilities to find the right fit.
The landscape of planning options includes Life and LTC linked benefits, asset based and hybrid solutions. Traditional long-term care insurance can be designed with shared care plans for married or domestic partners. Plans can be designed for maximum flexibility – allowing informal care and paying cash benefits. All plans are customized for your goals.
Consumers are encouraged to take action with a multiple of incentives:
- NY State Tax Credit of 20% on total LTC premiums
- Federal deductions for business owners or those who itemize medical expenses
- HSA accounts can be used to pay LTC premiums
- 1035 exchange using cash in life insurance to purchase LTC tax free
Financial experts agree that without long term care planning, your family’s financial and personal lifestyle goals are incomplete.
Natalie Karp, MBA, CLTC and Rona Loshak, MBA, CLTC are independent brokers who affiliate with all the leading LTC Insurance carriers. The duo is trusted source of information on Long Term Care Insurance for individuals, business owners, and employer groups. Exclusively focused, their expertise includes traditional (stand alone) Long Term Care Insurance policies, Hybrid Life/LTC plans, Life with LTC riders, financing LTC Insurance, and providing LTC Insurance with tax and estate advantages. Award winning specialists with recognition from Congress and State Senate, Goldman Sachs 10,000 Small Business and Long Island Achievers’ Honorees. www.karploshak.com Phone 516-801-1419
 NYTimes, Personal Finance, 2015