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5 surprising facts to know about long-term care insurance
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When it comes to planning for your retirement finances, the focus tends to be on saving and investing — and for good reason. Without enough money put away, it can be tough to cover all of the expenses that arise after you’re done working. And, the type of investing and saving you do can vary depending on your financial goals during retirement, which can put further emphasis on that part of retirement planning.
But building a solid financial foundation for retirement extends well outside of your savings and investments. Other parts of your retirement finances are equally as important to prepare for, too — and that includes the medical expenses you could face in your later years. And while Medicare can help cover some of those costs, it may not cover everything — including the long-term care you may need in the future.
That’s where long-term care insurance comes in. This type of coverage is used to pay for the cost of certain types of long-term care, which can put a big strain on your retirement budget if you have to pay them out of pocket. In turn, it can be a vital component of a well-rounded retirement plan — and if you’re considering a policy, there are a few other surprising facts about long-term care insurance that you may want to know.
Find your best long-term care insurance options online here.
5 surprising facts to know about long-term care insurance
If you’re considering a long-term care insurance policy, there are a few surprising facts to consider, including:
It can cover more than nursing home expenses
One common misconception about long-term care insurance is that it only covers expenses related to nursing homes. However, the coverage from this type of policy extends to various settings, including assisted living facilities, home care, adult daycares and even hospice care. It may also cover the costs associated with aging in place.
This flexibility allows policyholders to receive care in a setting that aligns with their preferences, providing a sense of control over their healthcare decisions.
Understanding the diverse coverage options can help you tailor your long-term care insurance to match your specific needs and preferences. For instance, if you value the comfort of receiving care at home, you can structure your long-term care insurance policy to cover home-based services, allowing for a more personalized and comfortable experience.
Compare long-term care insurance policies to find the right option for you.
Hybrid policies combine life insurance and long-term care coverage
Another surprising fact worth noting about long-term care insurance is the emergence of hybrid policies, which combine life insurance with long-term care coverage. These policies offer a dual benefit, providing a death benefit to beneficiaries if the policyholder passes away without needing long-term care. If long-term care becomes necessary, the policy’s cash value can be used to cover those expenses.
The main benefit of hybrid policies is that they address the concern that traditional long-term care insurance can be a “use it or lose it” proposition, as premiums are paid but may not be utilized if the policyholder never requires extended care. This innovative approach provides a more comprehensive solution, adding an extra layer of financial security for both the policyholder and their loved ones.
Health issues can impact eligibility
While it’s common knowledge that health plays a role in determining eligibility for long-term care insurance — just as it does with several other types of insurance coverage — many people are surprised to learn the specifics of how health changes can impact their long-term care coverage. In particular, pre-existing conditions, especially those related to cognitive decline, can significantly affect eligibility, and insurers may conduct thorough medical underwriting to assess an applicant’s health status before issuing a policy.
However, some policies offer more lenient underwriting standards, making it crucial that you secure coverage before any significant health changes occur. Waiting until health issues arise can limit your options and result in higher premiums or even denial of coverage — which underscores the importance of planning ahead and obtaining long-term care insurance while still in good health.
Some policies offer shared spousal benefits
Long-term care insurance often comes with the option for shared spousal benefits, allowing married couples to maximize their coverage. In a shared benefit arrangement, spouses have access to a pool of benefits that can be used by either partner. This provides a level of flexibility and financial support, ensuring that both people can receive the care they need without being limited by individual benefit amounts.
Shared spousal benefits address the reality that long-term care needs can vary between spouses. By pooling resources, couples can navigate potential healthcare challenges more effectively, offering peace of mind at a time when support and care are paramount.
There may be tax advantages
You may also be surprised to discover that long-term care insurance can offer tax advantages. The premiums paid for long-term care insurance coverage are often tax-deductible, subject to certain limitations. This can be particularly beneficial for business owners seeking ways to manage their tax liability while ensuring comprehensive coverage for potential long-term care needs.
But understanding the tax implications of long-term care insurance can be a valuable component of financial planning, whether or not you’re a business owner. And, consulting with a tax professional or financial advisor can help navigate the complexities and leverage potential tax benefits associated with long-term care insurance.
The bottom line
Long-term care insurance is a vital tool when preparing for the uncertainties that come with aging. By understanding these surprising facts, you can make informed decisions about your long-term care coverage, tailoring it to your unique circumstances. From flexible coverage options to innovative hybrid policies, long-term care insurance offers a range of solutions that go beyond traditional expectations, providing financial security and peace of mind for the future.
Frito-Lay is recalling a limited number of 13 oz. bags of Lay’s Classic Potato Chips after being alerted by a consumer contact that the product may contain undeclared milk.
The bags of chips affected by recall were distributed to certain retail stores and e-commerce distributors in Oregon and Washington and were available for sale beginning Nov. 3, 2024.
“Those with an allergy or severe sensitivity to milk run the risk of a serious or life-threatening allergic reaction if they consume the recalled product,” the Food and Drug Administration said in the recall notice posted Thursday.
No allergic reactions related to the recall have been reported, according to the recall. Additionally, no other Lay’s products, flavors, sizes or variety packs are affected.
FDA
The recalled chips include Lay’s Classic Potato Chips, in flexible 13 oz. (368.5 grams) bags with UPC code 28400 31041, a “Guaranteed Fresh” date of 11 Feb 2025, and one of either two manufacturing codes: 6462307xx or 6463307xx.
General guidelines from the FDA advise consumers who have purchased any recalled food to dispose of the product or return it to the retailer for a full refund.
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What is the debt ceiling? Here’s why Trump wants Congress to abolish it before he takes office
Washington — President-elect Donald Trump, Vice President-elect JD Vance and billionaire Elon Musk blew up a GOP-backed deal to fund federal agencies into March, raising the pressure on Republican congressional leaders to craft a plan to avert a government shutdown just before the holidays.
In a statement Wednesday, Trump and Vance lambasted the agreement for including provisions favored by Democrats. But the incoming president and vice president also added a new, significant wrinkle to negotiations when they urged Congress to raise or abolish the debt ceiling now, instead of next year.
“Increasing the debt ceiling is not great but we’d rather do it on Biden’s watch,” Trump and Vance said in their statement. “If Democrats won’t cooperate on the debt ceiling now, what makes anyone think they would do it in June during our administration? Let’s have this debate now.”
What is the debt ceiling?
Set by Congress, the debt ceiling, or limit, is the maximum amount of money the U.S. Treasury is authorized to borrow to pay debts incurred by the federal government. Lifting the debt ceiling does not authorize new spending, but instead lets the government spend money on obligations that Congress has already been approved.
Failing to address the debt ceiling could lead the U.S. to default on its debt, which would have devastating effects on the economy. The government has never defaulted, and the Treasury typically uses accounting moves, known as “extraordinary measures,” to delay breaching the debt ceiling.
While raising the debt ceiling used to be routine, legislation addressing it has in recent years been used as leverage to force policy concessions and fuel debates over government spending.
Congress last addressed the debt ceiling in June 2023 as part of a legislative package negotiated by President Biden and then-House Speaker Kevin McCarthy. That deal suspended the debt ceiling through Jan., 1, 2025, ensuring any fight over it would take place after the 2024 elections.
The Treasury Department will likely implement extraordinary measures to stave off a default in the new year. It will also announce an “X date,” the estimated point at which the government will no longer be able to pay its obligations. The Economic Policy Innovation Center, a conservative think tank, projected in an analysis released Monday that it’s possible the debt limit will be reached by June 16.
While the Treasury Department’s use of extraordinary measures would give Congress more time to address the debt ceiling, Trump is now urging lawmakers to take action now, before he takes office.
Why does Trump want to raise the debt ceiling?
The president-elect will come into office with a legislative to-do list that includes securing the border and extending provisions of his signature Tax Cuts and Jobs Act, which was enacted in 2017 and overhauled the tax code. But a fight over the debt ceiling could complicate efforts by the Republican-led House and Senate to focus on those legislative initiatives and pass them quickly.
Trump is urging lawmakers to eliminate the debt ceiling altogether, a position that some prominent Democrats have endorsed in the past.
“Number one, the debt ceiling should be thrown out entirely,” Trump said in a phone interview Thursday with CBS News’ Robert Costa. “Number two, a lot of the different things they thought they’d receive [in a recently proposed spending deal] are now going to be thrown out, 100 percent. And we’ll see what happens. We’ll see whether or not we have a closure during the Biden administration. But if it’s going to take place, it’s going to take place during Biden, not during Trump.”
Trump separately told ABC News that “there won’t be anything approved unless the debt ceiling is done with,” indicating any spending deal to prevent a shutdown must address the debt limit.
“If we don’t get it, then we’re going to have a shutdown, but it’ll be a Biden shutdown, because shutdowns only [injure] the person who’s president,” he told ABC News.
Whether Republicans and Democrats would go along with such a plan, though, is far from clear. GOP lawmakers in both chambers have opposed raising the debt ceiling without spending reforms, and debates over the debt limit often give way to broader fights over the federal budget, which conservatives in Congress have said is bloated and should be reduced. Plus, Democrats still control the Senate and the White House.
White House press secretary Karine Jean-Pierre said in a statement Wednesday that shutting down the government would harm families and endanger services Americans rely on.
“Republicans need to stop playing politics with this bipartisan agreement or they will hurt hardworking Americans and create instability across the country,” she said. “President-elect Trump and Vice President-elect Vance ordered Republicans to shut down the government and they are threatening to do just that — while undermining communities recovering from disasters, farmers and ranchers, and community health centers.”
House Democratic Leader Hakeem Jeffries suggested Democrats would not go along with a plan pushed by Republicans to raise the debt limit.
“GOP extremists want House Democrats to raise the debt ceiling so that House Republicans can lower the amount of your Social Security check. Hard pass,” the New York Democrat wrote on the social media platform Bluesky.
Jeffries also told reporters “the debt limit issue and discussion is premature at best.”