What to Look for in an Extended-Care Policy
Extended-care coverage can be complex. Here's a list of questions to ask that may help you better understand the costs and benefits of these policies.
What types of facilities are covered? Extended-care policies can cover nursing home care, 家庭保健, 暂息护理的, 临终关怀, 在家进行个人护理, 辅助生活设施, 成人日托中心, and other community facilities. Many policies cover some combination of these. Ask what facilities are included when you're considering a policy.
What is the daily, weekly, or monthly benefit amount? Policies normally pay benefits by the day, week, or month. You may want to evaluate how (and how much) eldercare facilities in your area charge for their services before committing to a policy.
What is the maximum benefit amount? Many policies limit the total benefit they'll pay over the life of the contract. Some state this limit in years, others in total dollar amount. Be sure to address this question.
What is the elimination period? Extended-care policy benefits don't necessarily start when you enter a nursing home. Most policies have an elimination period – a timeframe during which the insured is wholly responsible for the cost of care. 在许多政策中, elimination periods will be either 30, 60, or 90 days after nursing home entry or disability.1
Does the policy offer inflation protection? Adding inflation protection to a policy may increase its cost, but it could be very important as the price of extended care may increase significantly over time.
When are benefits triggered? Insurers set some criteria for this. 一般, extended-care policies pay out benefits when the insured person cannot perform 2 to 3 out of six activities of daily living (ADLs) without assistance. 六项活动, cited by most insurance companies, 包括洗澡, 照顾尿失禁, 沙拉酱, 吃, 个人卫生, 和转移. A medical evaluation of Alzheimer's disease or other forms of dementia may also make the insured eligible for benefits.2
政策税是否合格? In such a case, the policyholder may be eligible for a federal or state tax break. Under federal law and some state laws, premiums paid on a tax-qualified extended-care policy are considered tax-deductible medical expenses once certain thresholds are met. The older you are, the more you may be able to deduct under federal law. You must itemize deductions to qualify for such a tax break, of course.3
记住, this article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax professional before modifying your extended-care strategy.
How strong is the insurance company? There are several firms that analyze the financial strength of insurance companies. Their ratings can give you some perspective.
There are many factors to consider when reviewing extended-care policies. The best policy for you may depend on a variety of factors, including your own unique circumstances and financial goals.
1. ACL.政府,2022
2. Investopedia.com, 2022
3. AALTCI.org, 2022
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. 请咨询法律或税务 professionals for specific information regarding your individual situation. This material was developed and produced by 消费品套件 to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named 经纪自营商, 在州或证券交易委员会注册 投资咨询公司. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. 版权 消费品套件.
