When Will Your Long-Term Care Benefits Kick In?

Presented by Mark Phillips

Long-term care refers to a broad range of medical and personal services for people with chronic disabilities who have lost the ability to function independently. Long-term care services can be divided into three levels:

·         Skilled care is continuous, around-the-clock care designed to treat a medical condition from which the patient is expected to recover. Skilled medical personnel, such as registered nurses or professional therapists, perform this type of care under a physician’s orders.

·         Intermediate care is intermittent nursing and rehabilitative care provided by registered nurses, licensed practical nurses, or nurse’s aides under the supervision of a physician.

·         Custodial care is designed to help an individual perform the activities of daily living (ADLs). It can be provided by someone without professional medical skills but is supervised by a physician.

Medicare and other forms of health insurance do not pay for custodial care, which is why your long-term care policy benefits are so important.

When will you qualify for custodial care?

If you own long-term care insurance (LTCI), you can qualify for custodial care if:

·         Your doctor certifies it is medically necessary.

·         You have a severe cognitive impairment.

·         You are unable to perform a certain number (usually two to three) of the six ADLs for 90 days or more. The ADLs are:

-          Eating

-          Bathing

-          Dressing

-          Toileting

-          Transferring (into or out of bed, a chair, or a wheelchair)

-          Continence and personal hygiene

Be sure to check the details of your LTCI policy to determine the specific medical conditions it covers.

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.

IRS CIRCULAR 230 DISCLOSURE:

To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

For IARs: Mark Phillips is a financial advisor located at Mark Phillips & Associates, 19712 MacArthur Boulevard, Suite 225, Irvine, CA 92612. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network^®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at (949) 333-6394 or at mark@phillipswealthmanagement.com.

© 2014 Commonwealth Financial Network^®