Saturday, July 14, 2012

Physican and Patient Benefits of Long Term Care Insurance

The Internal Revenue Service has approved a tax incentive with substantial implications for long-term care insurance. The new proceedings identified in this new code are rather intricate, but in short identify three key assumptions for policyholders and physicians alike. The first is that the incentive allows for premiums to be paid with money that is yet to be taxed. Second, the return of said premiums can be assigned to a given estate tax-free. Third, long-term care benefits do not need to be extended to all persons under management. This tax incentive is directly correlated with the increasing cost of health care and the heightened expenses connection to long-term care.

Studies show that the annual cost of long-term care averages $70,000 with an expected growth rate of 5% per year. This number would be largely erroneous if long-term care wasn’t as in demand as it is today, however that is not the world we live in. In reality, 70% of our nation’s senior citizens over the age of 65 will need some sort of long-term care. The following overview responds to this trend by identifying a unique illustration of long-term care from both a physician and a patient’s perspective.

Part 1, Physicians Perspective:

Physicians and other professions in the medical field are by no means a stranger to the afflictions of long-term care insurance. The risk of unfavorable outcomes and the costs associated with long-term care are extraneous variables that are difficult to identify and control. This assertion, however, does not mean that a physician has to be adept to the intricacies of long-term care to protect his/her patients. A longstanding LTC carrier can take care of that for you.

Still, medical professionals often question whether or not long-term care is right for both the sake of their practice and their own financial health. Yes, risk is a factor, but so is weighing the pros and cons. Take into consideration how patients will react to the idea of investing in long-term care coverage. Some may be skeptical at the idea, but if they know they can rely on it, their trust and loyalty in you as a doctor will be reaffirmed. It’s also important to consider how recent advancements in health care have affected the supply and demand for medical attention. People are living longer and the need for long-term care is by no means slowing down.

Now think about your own financial health. During the working years, nearly all medical professionals employ disability insurance to protect their income. But when that income stops paying off and you leave the professional practice, you still need to protect what you’ve earned. Long-term care is a means of safeguarding the assets you’ve accumulated so they can be enjoyed and passed on.

Part 2, Patients Perspective

In the grand scheme of things, long-term care insurance isn’t just selling coverage for elderly needs, its selling peace of mind. This peace of mind is a byproduct of increased quality of life for the policy holder and their loved ones. Furthermore, long-term care may be utilized during retirement, but is best obtained prior to then.

Of the most common long-term care misconceptions is that LTC is the same as nursing home insurance. While it is true that nursing homes are a policy option, the site at which the person in need receives care is entirely up to their own choosing.

Acquiring long-term care before the age of 50 is by no means uncommon, as half of the four million long-term care policy holders in the US are under the age of 65. Additionally, these policies are unique in that partners and members of the immediate family can share a single policy. As for costs, the younger you acquire long-term care, the less you’ll pay in premiums. This is because a younger policy holder is more likely to be healthier. Lastly, long-term care immediately protects your present and future assets.


With increased demand comes increased supply. Many insurance providers have responded to the needs of the elderly since the long-term care boom circa twenty years ago. Each of these agencies differs vastly in terms of experience and quality. Therefore, physicians direct patients in need of long-term care to the agencies with solid reputations built up over years of experience. Long-term Care Financial Partners, or LTCFP for short, is one of the most highly renowned agencies that physicians refer their patients to. Holding branches in most major cities, LTCFP is highly accessible. In addition, there numerous product offerings draw the attention of medical professionals and patients across the country. For example, all potential candidates receive a free evaluation session for those interested in adding long-term care to their list of employee benefits. Knowledge and professional advice is the best way to capitalize on a long-term care insurance plan. As the world evolves, the needs of people change; long-term care markets itself to respond to the needs of the elderly and is a win-win situation for physicians and patients alike.

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