If one buys a policy at 75 years of age, then the premium will be considerably higher in fact, double what it would have been at age 65. If an individual buys a policy with a large daily benefit, a longer maximum benefit period, or a home healthcare benefit, it will cost even more. Inflation protection itself can easily add 25 percent to the premium. Incidentally, some states do have laws that limit rate increases and the accountant must check this out carefully, as it may play a pivotal part in the client s eventual decision to buy or not buy a LTCI policy. The older you get, the more it costs.
Most policies cover both home care and institutionalized care.
Generally, home care is half the institutionalized care. The Tax Angle With the passage of the Health Insurance Portability and Accountability Act of 1996, there are some federal income tax advantages to people who buy certain long-term care insurance policies. They are called tax-qualified LTCIs, or simply, qualified contracts. The individual state may also have taken action to offer additional tax advantages. The amounts, of course, depend on your age.