Farmers Long Term Care Insurance
Since their inception in 1928, Farmers Insurance Group has been providing a diverse line of individual, group, business, and property insurance policies, which include but are not limited to homeowners insurance, auto insurance (including motorcycle, boat, and recreational vehicle insurance), and life insurance. Farmers Insurance Group has also been providing financial products and services such as financial advisory, retirement planning, and investment portfolio management to a client base of more than 10 million households across 41 states in America. The financial services offered by Farmers Financial Group include mutual funds, variable universal life insurance, and variable annuities. One type of health insurance offered by Farmers Insurance Group that is currently increasing in popularity is long-term care insurance, which is thoroughly reviewed below.
What Is Farmers Long Term Care Insurance?
Farmers long-term care insurance (also commonly referred to as LTC insurance), is a type of health insurance that provides coverage for long-term health care expenses. In essence, this type of insurance is offered to patients that require ongoing long-term care for a chronic or terminal illness. Thus, farmers long-term care insurance usually charges higher premiums than those associated with conventional health insurance plans, as the insurance company often has to cover exuberant expenses on an ongoing basis. Anyone that is currently in need of assistance with basic living activities such as bathing, feeding, and clothing themselves, may be eligible for long-term care insurance. LTC insurance also usually covers expenses associated with mental health facilities that are designed to assist the cognitively impaired (i.e. – individuals with diseases like Alzheimer's or Parkinson's).
What Are the Benefits of Farmers Long Term Care Insurance
Farmers long-term care insurance usually covers expenses associated with assisted living, home care, nursing home stays, respite care, hospice care, and adult day care services. Long-term care insurance will cover the cost of live-in caregivers, housekeepers, private duty nurses, therapists, and personal companions. Some insurance policies will only cover a certain percentage of the assistant's salary (i.e. - the policy may only allow for 3 days of care per week). However, there are some long-term care insurance policies that provide coverage for up to seven days per week, 24 hours per day of personalized care. As an additional benefit, all premiums paid on long-term care insurance policies may be eligible for income tax deductions (however the amount of the deduction will depend on the age of the policyholder). Business owners may also be able to file tax deductions for their premiums, depending on the type of business they own.
Types of Farmers Long Term Care Insurance Policies
There are two main types of farmers long-term care insurance policies – tax qualified policies, and non-tax qualified policies – with the latter being the least popular. In order to be eligible for a tax qualified long-term care insurance policy, the applicant must require care for least 90 days, and they have to be unable to perform at least two or more basic living activities (such as clothing, bathing, toileting, or eating). All benefits of a tax qualified long-term care insurance policy cannot be taxed. On the other hand, in order to be eligible for a non-tax qualified long-term care insurance policy the applicant only has to be unable to perform one or more basic living activities. However, non-tax qualified long-term care insurance policyholders may face exuberant tax bills for receiving access to personalized care through their policy coverage. Thus, it would be best to gain approval for a tax qualified long-term care insurance policy, in order to minimize the overall costs, and maximize the impact of the plan benefits.