To answer this question, I need to first share why and when LTC insurance companies are required to approve and pay a claim, and then I'll discuss where this can get confusing or messed up.

LTC insurance companies are strictly regulated by the Internal Revenue Code (IRC) 7702(b).

If the plans offered will be tax deductible to some individuals and most businesses, and for benefits to be paid tax-free, LTC insurance companies must adhere to the 7702(b) rule.

This week, I'm sharing and simplifying definitions within the 7702(b) code.

When we understand when companies are required to pay, we'll be better able to use their own vocabulary when talking with the claims departments.

If you already own LTC insurance, you should read the policy and review it every couple of years. Have your kids read it, too. And adult children should read and review their parents' policies.

If you would like help reviewing your plan, ask. I'll be glad to to review it with you.

If you don't own LTC insurance, it's time to schedule with me at start designing a customized plan to meet your specific wants and needs.

Schedule at https://calendly.com/diane-p4t/60min

Today, I want to discuss the financial risk we're facing when planning for LTC needs in 20 or 30 years or more.

Home care costs increased on average 10% nationwide from 2022-2023.

Assisted Living costs increased 5% on average over that same time.

It's not going to get cheaper to get the care we need to get through each day.

This information comes from https://www.genworth.com/aging-and-you/finances/cost-of-care

Falls are a big reason people start to need help and support per HelpGuide.org

https://www.helpguide.org/aging/healthy-aging/fall-prevention

Caregiving is expensive, financially, physically, emotionally. We can't be expected to do this alone, without help.

If we reach age 65, greater than 50% of us are going to need some form of extended care services. Thankfully, most of us won't be in a nursing home.

But we need a plan to be able to stay home and receive care. We need to plan to pay well over $20,000/month for care needs in 30 years.

Listen to this week's episode of costs of care and schedule with me to design your plan at https://calendly.com/diane-p4t/30min

Yes, a colleague of mine is selling all of her uncle's belongings because he was "put into aged care".

Those who plan know where they want to be when a long term care event enters the picture. And they have the income, savings and LTC insurance to support their plan. Most stay home with help for most to the need and move to assisted living if care needs increase. Most don't ever live in a nursing home, and they surely don't get "put" somewhere.

People without a plan put their whole family in a crisis mode adter a severe stroke or when Alzheimer's or other dementia shows up.

The three questions we need to ask are:

1) Where do I want to be when needing help to et through each day?

2) Who do I want to have there with me?

3) How will I pay for this?

Needing LTC services is expensive. Home care easily costs near $40/hour today, and assisted living $4-8000/month. Costs of care are increasing by about 5% annually.

Schedule some time with me to protect your family when life doesn;t go as planned https://calendly.com/diane-p4t/30min

On Sunday, Suze Orman discussed the finally finalized rules for inherited IRA's.

Listen here: https://www.suzeorman.com/podcast

Today, I'm going to share a case study to share what one of our clients did with some of the IRA funds she inherited from her mom.

Some of you know that "non-eligible" beneficiaries of IRA funds are required to withdraw all tne money in the IRA within 10 years and pay taxes on those withdrawals. If you don't know, listen to Suze's podcast episode from Sunday, September 3, 2024 with the above link.

Nicole used $17,000 a year of the $45,000 she is required to withdraw annually over 10 years to create a paid-up long term care plan that will pay more than the entire inheritance she received ($450,000 IRA and $450,000 non-IRA funds).

Listen and learn how we accomplished this. Nicole's mom left her a nice inheritance with an unforseen tax burden. We repositioned that tax burden to create tax-free LTC benefits for her or a tax-free death benefit for her kids.

Schedule with me to learn how you can reposition yout tax-burden at https://calendly.com/diane-p4t/30min

The two most common reasons people tell me they're looking into LTC insurance are:

1) They don't want to bankrupt their spouse emotionally, physically or financially, and

2) they don't want to burden their children with the responsibility to care for them or to have to pay for their care.

Many who say this are caring for a parent who hadn't planned.

Many of us in our 50s and 60s don't think we'll ever need care, even though we are providing for our parents. Why do we deny that we could end up needing help as much as they do today.

The best gift an older parent can give to their adult children can be a funded LTC plan for the adult children. This way, the granchildren won't be facing the same caregiving issues the kids have while caring for the elderly parents now.

Parents who are trying to leave an inheritance for their kids can use a small portion of their savings to obtain a very substantial LTC plan for the kids. This can lessen the burdens of hte next generation.

Schedule with me to learn how https://calendly.com/diane-p4t/30min

Tom shared that there is dementia in his wife's family but not in his. He wants a policy for her but doesn't think he'll need one.

My mom's husband said the same thing several years ago, and now he has dementia, at age 68. She's going to be upset that I am sharing this, but it's so important to consider how your decisions affect your family.

You may never need long term care services, but what if you do?

Who is going to have to step up and change their lives to help you and for how long?

Who is going to decide where you're going to have to live?

Who is going to have to sell all your stuff to qualify you for Medicaid?

Who is going to sacrifice their future to keep you out of a Medicaid nursing home?

All because you never thought you woudl need help someday...

There are plans that pay your family back if care is never needed, so why not use some of your money to protect the rest while you're protecting your family from being forced to choose between multiple bad options to meet your needs?

Schedule with me to start designing your plan at https://calendly.com/diane-p4t/30min

This week, we're talking about health qualifying for LTC benefits.

What to do...

What not to do...

LTC planning is all about timing. If you apply at the wrong time or with the wrong company, you could be declined for something that would have been approved had we waited for the right time or company. We don't want to make this mistake.

It takes a lot longer to overturn a decline than it does to wait until the best time to apply for a more likely approval.

LTC underwriters really are nice people. Their job is to find reasons someone would be too much risk to the company's other clients. My goal is to know where and when you are most likely to be approved.

If you have a health concern and wonder if it is an acceptable risk to getting LTC coverage, ask me for help. The insurance companies are not a part of our conversation until we invite them in with an application.

Schedule at https://calendly.com/diane-p4t/30min

Too often, people contact me when it's too late to access all their LTC planning options.

Some people believe they are planning ahead at age 80.

Some people wait to inquire until after a diagnosis either limits their options or makes them altogether uninsurable.

The earlier we plan, the more choices we have, AND the more benefits we can obtain for the least amout of premium.

Business owners can deduct LTC premiums, so it's helpful to pay for the plans while you still own the business, to get additional tax write offs.

C corporations can deduct 100% of LTC premiums without a cap.

LLCs and S Corps have a maximum they can deduct. The 2024 caps are below. These are per person

Age 40 or less $470

Age 41-50 $880

Age 51-60 $1760

Age 61-70 $4710

Age 71+ $5880

Schedule with me to learn more https://calendly.com/diane-p4t/30min