By Linda Cammuso
Long-Term Care Insurance (LTCi) is one of several key tools in the estate and long-term care planning process. This form of insurance provides financial support for long-term care expenses in a nursing home setting as well as in a person’s own home. LTCi generally funds care expenses not covered by health insurance including Medicare. It allows policyholders to have choices in where and how to receive care, and helps preserve assets to be passed on to loved ones.
As the result of an insurance trade group research, which shows that two thirds of all long-term care claims are made by women, a leading insurer is now in the process of repricing rates for LTCi. It is expected that more insurers will follow that lead. Previously insurers charged the same premiums regardless of gender. However, starting in 2014 premiums for women are expected to increase between 20% and 40% over those for men.
If you are a woman who is considering purchasing a long-term care insurance plan you might consider purchasing coverage this year. As part of the insurance process, be sure to check with your estate planning attorney to see how LTCi integrates with your estate plan.