Individuals

Long term care is needed by individuals in the event of an extended illness or disability and will allow you to receive care in your own home.  If home care isn't practical, it will cover care in an assisted living facility.  If and when it becomes necessary, it will cover nursing home care.

Did you know that 40% of Americans receiving long-term care are under the age of 65!^[1]  60% of Americans over the age of 65 will require long-term care in their lifetime.^[2]  The average nursing home stay is 2 1/2 years.^[3]  In 7 out of 10 couples aged 65 and over, one spouse will enter a nursing home. ^[4]  Women over 65 are 1 1/2 times more likely to enter a nursing home than men.^[5]

The metro Philadelphia area average is $68,160 per year or $187 per day.^[6]  Annual costs for limited at-home care following a disability are $38,400 and up.^[7]  In the next 20 years these costs are expected to triple.^[8]  HMO's and conventional group health insurance policies don't cover long-term care.  Medicare, even with a medigap supplement, handles short-term, not long-term care.  Only about 8% of costs are currently covered by Medicare.^[9]

Why considered long-term care insurance sooner rather than later?  First, you can save money.  Premiums are lower if you apply when you're younger and healthier.  Each year you wait adds health risk, higher premiums, and could find you uninsurable.  Second, to reduce worry.  Accidents happen everyday.  A debilitating illness can occur at any age.  Unfortunately, most employer provided or pre-retirement health insurance plans do not include long-term recuperation with at-home or assisted living care.  The right long term care insurance policy eliminates this worry.

For your long-term care insurance needs, count on AIA to help.  We can educate you about the different types of plans available,   discuss the advantages and disadvantages of one policy over another and select the policy that meets your financial goals and provides you with peace of mind.

Employers - Work-Site Voluntary Long Term Care Insurance

When one of your employees needs long-term care, or must provide long-term care for someone at home, it may put your business at risk because it can have a great impact on your bottom line.  Caregiving responsibilities often consume the caregivers physically, mentally and may be financially devastating. 

Please realize that long term care is not covered by health insurance plans, Medicare or disability income insurance!

Unlike other forms of insurance provided through the workplace, Long Term Care Insurance is typically funded completely by the employee, without a contribution from the employer.  Even without a contribution from the employer, Long Term Care Insurance through the workplace can give employees the advantages of group insurance over individual policies.  Premiums for employer-group plans are often discounted by the insurer and therefore provide incentive for employees to purchase this insurance.

A decade ago, long term care insurance was offered to just 3% of private industry employees; by 2003, that figure had grown to 11 percent. ^[10]

Tax advantages vary for employers that pay for long-term care insurance depending on the structure of the business, i.e., sole proprietor, partnership, LLC, C – Corporation, etc. 

Employees that pay their own premium and have medical/dental expenses exceeding 7.5% of adjusted gross income may be able to deduct eligible Long Term Care premiums.   In addition, benefits are not considered taxable income to the insureds or their families, even if the employer paid the premium. 

Premiums cannot currently be included in a Section 125 “cafeteria” plan.

Food for thought….. in 2002, the Federal Government started offering employees and retirees participation in their newly endorsed Long Term Care Insurance Program (FLTCIP).  Despite the fact that the government makes no financial contribution toward the cost and that participants are paying 100% of their premiums, this Program has had tremendous participation. 

The FLTCIP held its first open enrollment in the Fall, 2002.  As of November 2003, more than 200,000 individuals had enrolled in the Program.^[11]  This response shows that by having the ability to purchase this insurance as an employer-group benefit, many employees have come to realize Long Term Care Insurance is an important part of their financial planning.  It also states loud and clear, that the government has no intention of being able to provide long term care benefits under any governmental programs….such as Medicare. 

Affinity Groups

Often times Affinity Groups/Associations look for ways to provide a variety of value-added benefits to their membership.  By offering a Long Term Care Insurance Program on a voluntary participation basis, your Group will allow eligible members to be able to include a discounted insurance product as part of their personal financial plan.  Participation in a Long Term Care Insurance Program can also be extended to include relatives of the Association Group member.

Many fail to realize the impact a long-term care situation has on finances that were earmarked for healthy retirement living expenses.  However, often times when one spouse is in need of long-term care, and the couple has not purchased Long Term Care Insurance, assets are quickly depleted by unexpected costs.

Association Insurance Administrators, Inc. has worked with Associations in providing membership benefits since 1977.  We realize the image of the Association is reflected in the agents it selects to handle the marketing of its products.  Going a few extra steps is what we are all about and the reason why after over 27 years in business we still handle insurance programs for our first client.

If your group is looking for a way to retain members and attract new ones, why not contact AIA to discuss the various Long Term Care Insurance Programs available and the reputable, experienced, financially stable insurance companies we are proud to represent.

Contact AIA

For more information or to explore your long-term care insurance needs, contact AIA at 215-348-5060.  Licensed in PA and NJ.