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3 reasons long-term care insurance is better than paying out of pocket
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Long-term care is something that most older Americans will eventually need. And, considering the high cost of that care, it’s important to prepare for it ahead of time. Failing to do so could limit your options and put undue strain on your family and friends when you need care.
One way to address high long-term care costs is by purchasing a long-term care insurance policy, which can help cover costs for nursing homes, assisted living facilities and in-home caretakers. Another way is to save money to pay out of pocket when the need arises. Though choosing the latter may give you more control over your money, doing so could be a mistake. Below, we’ll break down why long-term care insurance may be preferable to paying out of pocket.
Compare your long-term care insurance options and lock in your coverage now.
3 reasons long-term care insurance is better than paying out of pocket
There are a few reasons long-term care insurance is better than paying out of pocket for your care, including:
Tax benefits expand your coverage
Qualified long-term care insurance policies come with tax benefits. Not only can you deduct your premiums (up to annual, age-based limits) on your tax return, you won’t pay taxes on inflation protection-related growth in the value of your policy or your benefits when you receive them. That can make a meaningful difference in the amount of money you have available to cover the cost of your long-term care when you need it.
Take advantage of the tax benefits of a long-term care insurance policy today.
You’re guaranteed long-term care support when you need it
It can be difficult to refrain from tapping into money you saved for one purpose when another financial need arises. And, if you intend on saving money to pay your long-term care expenses out of pocket, you may tap into that money from time to time.
On the other hand, if you purchase a long-term care insurance policy, you won’t be able to access your benefits until you have a qualifying long-term care need. As such, when that need arises, your benefits will be available (as long as you’ve paid your premiums), regardless of the financial needs that arise between now and then.
Long-term care insurance protects your family
Life happens, and when it does, it can be easy to get off track in terms of saving in and maintaining your long-term care fund. But, if that happens, and you don’t have insurance to fall back on, your family could pay the price.
“The risk of a long-term care event is not only financial,” explains Jeff Beligotti, vice president and head of long-term care solutions at insurance company New York Life. “Long-term care events can quickly deplete a retirement portfolio, result in burdensome caregiving responsibilities for your loved ones, including lost wages from taking time off work, and cause emotional distress.”
Even if you intend on aging at home and leaning on your family and friends for support, long-term care insurance makes sense. It can give your informal caregivers breaks and some policies will even make it possible to pay your family and friends for the care they provide.
The bottom line
At first glance, it can be difficult to decide whether it’s better to purchase long-term care insurance or to save money with a plan to pay for your care out of pocket. But as you dig into the details, the benefits of long-term care insurance become clearer.
Thanks to the tax advantages associated with a long-term care insurance policy, you could have access to more funds than if you had paid out pocket. Moreover, long-term care insurance guarantees your access to care when the need arises as long as you pay your premiums, and it can protect your loved ones. Chat with a long-term care insurance agent now about your options.
CBS News
Tropical Storm Milton forms in Gulf; forecast to strengthen into hurricane headed toward Florida
Tropical Storm Milton has formed in the Gulf of Mexico and is forecast to strengthen into a hurricane headed toward Florida with possible impacts to its western coast, the National Hurricane Center said on Saturday. Maximum sustained winds are expected to be at 40 mph with higher gusts and Milton is currently moving north-northeast, NHC said in an advisory.
Milton is forecast to undergo a period of rapid intensification before it makes landfall as a Category 2 hurricane across Florida’s west coast, CBS News Miami reported.
The forecast comes a little more than a week after Hurricane Helene made landfall in Florida and across the Southeast, killing more than 200 people and causing immense destruction. President Biden on Thursday took an aerial tour of Florida’s Big Bend where Helene struck as a Category 4 storm. Hundreds of people are still missing and Mr. Biden said the work to rebuild will cost “billions of dollars” as communities suffer still without power, running water and passable roads.
NOAA
Milton is forecast to move across the southwestern Gulf of Mexico through Sunday night then across the south-central Gulf on Monday and Tuesday before reaching Florida’s west coast by the middle of the week, NHC said. Heavy rain is possible in the region starting Sunday into Monday, CBS Miami reported, and more rain and heavy winds will most likely arrive on Wednesday. Hurricane and storm surge watches will most likely be required for portions of Florida starting Sunday, the National Hurricane Center said.
Along with the heavy rainfall, the hurricane center said to expect risks of flooding.
Residents in the area should ensure they have a hurricane plan in place, the National Hurricane Center said, follow the advice of local officials and check back for forecast updates.
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A new Barbie has joined Mattel’s lineup of inclusive dolls. The first “Diwali doll” was announced by the toymaker on Friday, a few weeks shy of the Hindu holiday of Diwali, also known as the festival of lights.
The festival, which lasts for five days, is marked on Western calendars to begin on Nov. 1, but some celebrations start on Oct. 31.
The doll, created in collaboration with fashion designer Anita Dongre, features traditional elements including the lehenga skirt, floral print and golden shoes, according to Mattel’s website. The doll is available at major retailers for $40.
“The look is infused with beauty and symbolism to rejoice in victory of light over darkness with contemporary silhouettes,” the description reads for the Diwali doll.
Lalit Agarwal, country manager for Mattel India, said in a news release that through the Diwali doll, the brand is hoping to showcase “India’s vibrant cultural heritage on a global stage while continuing to celebrate the power and beauty of diversity.”
Earlier this year, Mattel announced the first-ever blind Barbie doll and a Black Barbie with Down syndrome.
In addition, to celebrate International Women’s Day on March 8 and Barbie’s 65th birthday on March 9, the doll brand announced it was adding new dolls to its Role Models collection, based on real-life singers and actresses from around the world. They’re not for sale – a one-of-a-kind doll was made for each of the honored women.
The dolls are meant to introduce “girls to remarkable women’s stories to show them you can be anything,” according to Mattel.
