Long Term care insurance in united states are sold to cover the insured against the expenses incurred for long term medical aid or assistance which are not cover by usual medical insurance policies. Individuals who are covered under long term care are those who are not able to perform few or most of their daily activities independently and needs assistance.
Long term care law did not prescribe any age limit for long term care insurance and any one can take up this insurance.
Long Term care generally includes the following facilities:
Some individuals feel reluctant to rely on their children or relative for their long term care expenses and hence this insurance helps them take care of the expenses during the course of the care without depleting their savings.
Long term care insurance premiums are eligible for income tax deductions and benefits provided under long term care insurance are not included in the income. If a business house pays premium for long term insurance benefits for their employees then the premium paid is treated as deductible expense if it is not included in the employee’s taxable income.
As per US tax laws, long term care policies can be categorized as Tax Qualified under which the tax benefits are available to the policy under and Non-Tax qualified under which the tax benefit status is not clarified by the US treasury. People usually go for tax qualified policies to avail the tax benefits.
Most of the policies cover long term care benefits only in United States. However, few policies at a higher premium may cover nursing facility at select foreign countries. Also, most policies work on reimbursement basis, meaning pay-and-claim, and very few policies offers daily pocket expenses.
It is always advisable to go for long term care plan at an early age to avoid paying higher premiums. The US deficit reduction act, 2005 provides for state partnership for long term care and as of now, sixteen states have entered into partnership.