BANKERS LIFE AND CASUALTY COMPANY: EXPERTS SAY VALUE OF LONG-TERM CARE INSURANCE MORE THAN JUSTIFIES COST FOR MOST PEOPLE
Monday, February 21, 2005
CHICAGO (February 21, 2005) - While
many consumers say cost is a deterrent to buying long term care
insurance, growing numbers of professionals suggest that the cost
of premiums are an affordable alternative to the increasing cost of
long term care.
"Premiums vary due to age and the type
of policy, but most middle-income consumers can benefit from a long
term care policy," said Scott Perry, executive vice president and
chief operating officer of Bankers Life and Casualty Company,
"Like other types of insurance, the
younger and healthier you are when you buy, the less expensive the
premiums," he said. "These premiums are still a bargain when faced
with the costs of long term care."
According to the American Council of
Life Insurers (ACLI), a 60-year old buying a policy with a two-year
benefit period today would pay in premiums over a 25-year period
about a tenth of what he could expect to pay for a two-year nursing
home stay when he reaches age 85.
In addition, the non-profit
Washington-based Women's Institute for a Secure Retirement (WISER)
reminds consumers that premiums of a qualified long term care plan
are deductible from federal taxes if total medical expenses,
including the premiums, exceed 7.5% of adjusted gross income.
Federal legislation now being considered, the "Health Care Tax
Deduction Act of 2005" (H.R. 218), would make premiums of qualified
plans tax deductible for everyone. As of 2004, 21 states had
adopted state tax incentives for long term care insurance
As the nation's governors warn that
the strain on public assistance programs, such as Medicaid, is
increasing (www.nga.org), "Baby Boomers" and "seniors" will need to
carefully evaluate all their options and plan for their long term
Established in 1879 and headquartered
at the historic Merchandise Mart in downtown Chicago, Bankers Life
and Casualty Company focuses exclusively on the financial security
needs of seniors. The company offers a broad portfolio of health
and life insurance and retirement savings products designed
especially for seniors. These products are distributed through a
national network of professionally trained company agents. Visit us
online at www.bankers.com.