Common Questions

When it comes to planning for you own long-term care it can seem there is much to worry about. At LTC Tree we believe the more you know the less you’ll worry and the better you’ll feel. Compiled below are some common questions related to long-term care explained:

Can Annuities Help Pay for Long-term Care?

Yes. Annuities can closely resemble a Certificate of Deposit however, they are not federally insured. Annuities are insurance contracts which pay interest on the premium you pay insurers. Life insurance companies will typically offer annuities as both immediate and deferred contracts.  An immediate annuity offers you periodic payments for x amount of years depending on your individual contract. Whereas with deferred annuities, payments do not begin until a specific event( retirement, birthday) occurs. Those who have trouble obtaining a long-term care policy due to health conditions may opt for the annuity route instead. Annuities can help create a payment stream to help pay for your future long-term care needs. In the event that you would like your payments to begin sooner than originally agreed upon, you will likely have to pay a surrender fee.

Can Home Equity Help Pay for Long-term Care?

A home equity conversion (HEC) or reverse mortgage can help you take advantage of the value in your home. A HEC gives you the option of monthly payments, lump sum, or a line of credit based on the equity of your home and your age. An individual could use the payments from this type of loan to then pay for their long-term care. Different types of HEC loans are offered through different sources and vary in conditions.

What is a Tax Qualified Long-Term Care Policy

For long-term care polices which meet certain federal standards a tax deduction on premiums paid are allowed. This is regulated under the Health Insurance Portability and Accountability Act or HIPPA. All Federally Tax Qualified polices will adhere to federal standards for paying policies. Benefit payments are not taxable as income.

If you or someone you love is interested in Long Term Care or Long Term Care Insurance be sure to visit: LTC TREE for more information.