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Who Needs Long-Term Care Insurance?

Just about anyone...

Men. Even though there is no guarantee if (or when) you may need long-term care services, as a man, you stand a reasonably good chance of eventually needing long-term care services at some point in your life. Long-term care can be very expensive, and can disrupt the best-laid retirement and asset distribution plans. Because you have to be reasonably healthy to qualify for long-term care insurance (LTCi), it’s important to apply for coverage while you are younger and healthier.

Women. Long-term care is in many ways a women’s issue. This is because women are more likely to spend some time as a long-term care provider to a family member. This experience provides women with a first-hand appreciation of the potential value of long-term care insurance. Women live longer than men on average. Long-term care can help ensure women have access to private-pay care, even if they outlive a spouse. Because you have to be reasonably healthy to qualify for long-term care insurance, it’s important to apply for coverage while you are younger and healthier.

You are between the ages of 45-65 and healthy. While New York Life Insurance Company makes long-term care insurance available to people between the ages of 18-79 (in most states), rates increase with age and it’s smart to purchase coverage when you are younger and more likely to be approved by underwriting for long-term care insurance. We encourage people to consider purchasing long-term care insurance early as insurability is typically higher at younger ages for most people. We encourage people who choose to delay adding long-term care insurance to their plans until later in life to be sure and apply for coverage before age 65 when premium rates continue to increase based on age.

Married Couples who are over 50 years old with children. Children typically take the lead in coordinating or providing care for their parents. Long-term care insurance actually makes it easier for children to help care for a parent by removing the burden of being the primary caregivers. If a couple is over 50 and they have children, their children may have kids of their own. This “sandwich generation,” as it’s called, may struggle with taking care of their parents' long-term care needs, and taking care of their own kids simultaneously. Having long-term care insurance coverage can help alleviate stress for both parents and their children.

Married Couples who are over 40 years old without children. Children typically take the lead in coordinating or providing care for their parents. Long-term care insurance can help couples without children coordinate and pay for care. The Care Coordinator feature of New York Life’s Long-Term Care Insurance can prove to be particularly helpful for couples without children.

Lesbians, Gay, Bisexual and Transgender (LGBT) Individuals. Long-term care insurance can be an important financial tool for LGBT individuals. LGBT individuals sometimes have a more limited support system and family network. Financial and care coordination assistance from children may also be less available. Federal financial support and access to a same sex spouse’s benefits is also sometimes more of an issue for LGBT individuals. New York Life extends its marital discounts to same sex couples in many jurisdictions. Contact an agent for details.

Singles, particularly women. For single people, long-term care insurance can help pay for care that might otherwise be provided by a spouse or family members. The Care Coordinator feature of New York Life’s Long-Term Care Insurance policy can also be helpful for singles because it can help them locate and obtain care services. Because women can live longer on average, they have many more years during which they may experience a need for long-term care.

Widows and widowers. Like single people, widowers may find that long-term care insurance can help pay for care that might otherwise be provided by a spouse or family members.

Business Owners. Long-term care insurance may provide tax deductions for both business owners and employees. Making long-term care insurance available as an employee benefit may help improve employee productivity because it reduces the time off employees may need to take to care for loved ones who need long-term care. Employers of pass-through entities and sole proprietorships who offer long-term care insurance to employees, or purchase coverage on themselves, may have certain tax advantages. Business owners may also be able to utilize an executive carve-out arrangement to utilize available tax advantages related to long-term care insurance premiums and benefits. Click here to learn more about tax advantages and long-term care insurance.

Planners. Many people choose to purchase long-term care insurance as part of addressing the overall financial plan. If you choose not to purchase private long-term care insurance you are left with two options if you need long-term care: 1. Self-insure/pay for care out of pocket or from savings or assets; or 2. Qualify for Medicaid, a government health care program for eligible individuals with low income and resources. For many, transferring the long-term care risk to an insurance company just makes good sense, and it’s something that gets addressed as part of the overall retirement plan.

Divorcees. Like single people, divorcees may find that long-term care insurance can help pay for care that may have otherwise been provided by a spouse or family member.

Second Marriages. Quite often in second marriages, couples select to keep at least a portion of their money separate out of a desire to set aside funds for children from a previous marriage. If one person in that relationship should eventually need long-term care and uses up their funds paying for care, the other person may have to eventually use the money allocated for the children. If two people are married, the government does not recognize a separation of finances. Getting a long-term care insurance policy may help protect one’s assets, and allow them to be used as planned.

The purpose of this material is solicitation of insurance. An insurance agent may contact you. Long-term care insurance is issued on policy form series ILTC-5000 and INH-5000 with a state identifier, where applicable and edition date. These policies may have exclusions and limitations.

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