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Long Term Care Insurance

Make Long Term Care Insurance a Part of Retirement Planning

An employer provides benefits to attract new employees and to retain current employees. These benefits may include health insurance, a 401(k) or pension plan, disability insurance and other financial and personal benefits. Another voluntary benefit an employer may offer is long term care insurance. Younger employees may not see the benefits of having long term insurance, but it should be a vital component to their retirement planning.

People who require long term care services need assistance in two or more daily living activities such as:

• Dressing
• Bathing
• Eating
• Taking medication
• Housework
• Mobility

The majority of people over the age of 65 will need to be placed in a nursing home for long term care support services at some point in their lives, and the average daily cost of these services is over $200 per day. Medicare does not cover the cost of this type of care, so in order for a person to not have to pay for this care out of pocket, they will need to have long term care insurance. Many elderly people receive care at home from a member of their family, but if they need professional in-home or nursing home care and they do not have insurance for this type of care, then it could be financially devastating to them because of the high cost.

Monthly premiums on private individual care insurance can be expensive, so it is better for people to take advantage of an employer sponsored insurance plan if it is offered. Employees can take advantage of lower monthly premiums while securing their retirement savings by avoiding the high cost of long term care. Employers can benefit by being able to deduct contributions to care insurance as a business expense and by expanding benefits that are not provided by medical or disability insurance. Long term insurance can fill the gap in anyone’s retirement portfolio.