Understanding the Costs and Financial Benefits of Long-Term Care Insurance

While the number of 401(k) millionaires is reaching record highs, the rising costs of long-term care can quickly erode these retirement savings. Without proper planning, including Long-Term Care Insurance, even a robust 401(k) may not be enough to cover the substantial expenses associated with aging and long-term care.

What’s the cost of Long-Term Care Insurance? It’s important to know how much you’ll pay for coverage each month, especially if you’re trying to plan for your future long-term care needs. In this article, we’ll break down the factors that affect premiums and give you policy cost examples.

Nineteen states, including California and New York, are considering following Washington's lead in taxing those who do not own Long-Term Care Insurance. These plans may vary dramatically, but they illustrate the importance of planning now to protect assets, access quality care, and even avoid tax in the decades ahead.

Many people think Medicare pays for long-term health care even though it will pay little or nothing. Families face financial strain paying for professional care. Despite being untrained and unprepared for this demanding job, some family members must become caregivers. There is a way to plan.

Pre-tax money in a Health Savings Account (HSA) can pay for Long-Term Care Insurance premiums. The IRS now allows a different amount of money to be contributed to an HSA for 2024 and an additional “catch-up” for those aged 55 and older.