Published 7/1/2013
Erica Smith

A Tax-Advantaged Way to Protect Your Assets

Erica Smith

You have spent your entire life building your savings. You deserve to be able to enjoy them! But what if you require long-term care at some point?

Today, the annual cost of many nursing homes exceeds $100,000, and has been steadily increasing. If you required long-term care, would these costs deplete your savings?

What is long-term care insurance?
A long-term care insurance policy covers a variety of services to meet both medical and nonmedical needs if you are, for an extended period of time, unable to care for yourself. These plans will either pay up front or quickly reimburse you for extended care expenses and can also be used to cover out-of-pocket expenses.

Under many long-term care policies, you do not have to be confined to a nursing home to receive benefits. In fact, care can be provided in many places—including your home, an assisted living facility, or in the community.

Why is it important?
Even if you maintain a healthy lifestyle, it’s impossible to predict whether you will need extended care due to an accident or illness. In fact, the possibility for needing such care is growing among Americans. According to a study by the U.S. Department of Health and Human Services, people who reach age 65 have a 40 percent chance of entering a nursing home. Of those who do, 10 percent will remain there for 5 years or more.

Also, the cost of long-term care is rising. In many nursing homes, total daily costs exceed $200. And, while recent regulations make it harder for individuals to qualify for government assistance, those who purchase long-term care insurance may benefit from tax advantages.

If you are relying on the hope that your loved ones will take care of you, consider the stress that caring for you would place on them. Would they even be able to provide the care you need? Proper planning can help eliminate the emotional and financial burden on your family while ensuring that you receive the care you need.

Learn more
Your AAOS membership gives you access to comprehensive long-term care insurance coverage at exclusive rates.

Under the AAOS Member Advantage member insurance program, long-term care insurance is available not only to you and your spouse or domestic partner, but also to your children (even adult children) and your parents. All plans are underwritten by highly rated insurance carriers, and a partnership with Long-Term Care Resources, a national network of long-term care specialists, ensures that you will receive assistance with any questions you may have.

You can even take advantage of an online LTC Calculator that can help determine projected future costs of care, annual rates of return, life expectancy, and a break-even analysis for premiums paid.

For more information, contact the plan administrator at 800-616-8759 or go online at www.aaosinsurance.com

Erica Smith is a copywriter for Pearl Insurance, which administers the AAOS long-term care insurance program.