Dear Doctor:

Long Term Care insurance is expected to be one of the most important and sought-after benefits in coming years. It’s now made available through the AVMA GHLIT.

How important is this coverage? Consider these factors:

The Risk – One in two individuals with long term care insurance will need to use it. (Compare this to your car insurance, which you would never be without. Your odds of using it are 1 in 240.)1

The Cost – The average nursing home stay costs close to $56,000 a year. A part-time home health aide easily costs $1,000 a month.2

The Timing – Think long term care is only for the elderly? Think again. Two out of every five Americans receiving long term care are under the age of 65.3

Long term care can be both a family and a workplace issue. Whether an individual is receiving or providing care, the financial and emotional impact can be felt at home and at the office. Long Term Care insurance is a way to responsibly plan for the future. Because a doctor can cover him or herself as well as family members – spouse, children and even parents – LTC offers a valuable and affordable means to preserve independence and wealth. Also, if your practice is an S or a C-corp, company paid LTC premiums may be deductible.

Some other advantages to keep in mind:

  • Premium discounts are available when you purchase LTC through the AVMA GHLIT
  • The younger you begin, the more affordable the premiums
  • Setting up Health Savings Accounts allows you to pay your LTC premiums with pre-tax dollars

AVMA GHLIT has done the due diligence you would expect, and is making available plans at a discount from two highly rated, financially secure carriers.

I urge you to carefully consider the value of this benefit. To learn more about how Long Term Care insurance fits into your benefit plan, please contact me at your earliest convenience.

Sincerely,

John Q. Agent

AVMA GHLIT Sponsored Agent

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1 “You’ve Earned It, Don’t Lose It: Mistake You Can’t Afford to Make When You Retire”, Suze Orman, 1997

2 “Most Americans Unprepared for Long-Term Care Costs.” AARP New Release, 12/20/01

3 “Guide to Long-Term Care Insurance,” 2002, Health Insurance Association of American (HIAA)

This information is not intended to be a comprehensive discussion of LTC tax issues. Please consult your tax professional for additional guidance.