Why do LTCI policy owners hold on to their policies? For many, they’ve considered the alternative of paying for their care out-of-pocket and facing the dilemma of finding quality care at a price they can afford. But that’s not all. When finding value in your Long Term Care insurance plan, the following are reasons policyholders cling to their LTCI policies.
LTCI Policies Are Getting Used
Perhaps one of the biggest reasons people hold on to their LTCI policies is because they get used. When federal workers experienced a high rate increase on their LTCI program, only 3.3% chose to stop paying premiums. In this group alone, the insurance carrier is paying out $14 million dollars in claims every month for about 4,500 enrollees currently on claim (out of 266,000 enrollees in the program).
“Those figures imply that the program has one enrollee getting long-term care benefits for every 59 enrollees, and that the average active claimant is getting about $32,000 in benefits per year.”
As many Americans think the government will be there to pay for their care, these federal employees recognize that may not be the case. They’re keeping their policies because they understand the value their policy offers.
New Rates Are Rising Every Year
Another reason many policyholders continue paying premiums over the life of their plan is because they realize the premiums on new policies are getting higher every year. The plan you bought while you’re young and healthy is less expensive than if you purchased the same plan today.
Even as policyholders may experience premium increases in their lifetime, buying a new plan will always be more expensive and current health issues may affect approval. Lock in your rate while you’re young and healthy and hold on to the value you bought for the long haul.
Tax Advantages for Planning Ahead
Your LTCI plan doesn’t only hold value for paying for your care later, you may be eligible for tax advantages now. Whether you’re an individual, a sole proprietor, or part of an S-Corp or C-Corp, you may be eligible for tax deductions on eligible LTCI premiums.
Not only that, the money you receive while on claim is tax-free up to certain limits. See your tax advisor for specific deductions and credits available.
Support for You and Your Family
A long term care insurance policy isn’t just financial peace of mind for you, it’s peace of mind for the entire family. Dedicated policyholder customer care teams are available to help find quality care and offer recommendations when you or your family needs help to navigate long term care event.
Have you taken the step to get you and/or your spouse covered with long term care insurance? We can help. At LTC Consumer, we work with people all across the United States to find the value in a long term care plan for their future. Try our instant online quoting software to find out what it may cost to cover you and your spouse with the top LTCI carriers in your state.
LTC Consumer is an independent, free online service to help consumers understand what long term care insurance is, how it works, and how to evaluate coverage options. Our mission is to provide an educational, no-pressure resource for learning about long term care planning, with the opportunity to speak with specialists who can help them.