Thought Leadership Series: Long-Term Care Planning

May 8th, 2024

First Long Island Investors, LLC was honored to host Natalie Karp, Founding Partner of Karp Loshak Long Term Care Insurance Solutions Brokerage, Inc., at the Garden City Hotel on May 8th for our semi-annual FLI Thought Leadership Breakfast. Karp Loshak, founded in 2008, serves as an independent broker affiliated with the leading Long-Term Care (LTC) Insurance carriers.  The firm is highly respected for their educational and consultative approach, which has been recognized as a resource by the Wall Street Journal and Newsday for their expertise on LTC insurance.

The conversation began with Natalie providing an overview of the current LTC landscape, emphasizing the escalating costs of care and the importance of proactively evaluating LTC insurance options.  She positioned LTC insurance as a crucial financial planning tool designed to mitigate the exorbitant expenses associated with LTC and highlighted the diverse range of LTC insurance solutions available.

Natalie noted that LTC insurance is often overlooked because people are reluctant to confront the possibility of future care needs.  However, ignoring this reality can lead to significant financial and emotional strain.  She cited the high and rising cost of care and that the typical LTC need spans three years, which makes the need for LTC insurance more critical as life expectancies continue to increase.  As a general guideline, Natalie mentioned that approximately 70% of individuals aged 70 years and older, and 80% of those reaching age 80, will require some level of LTC at some point.

FLI emphasizes the importance of considering LTC insurance for, quality of life, tax planning and estate preservation for suitable clients.  LTC insurance provides tax-free benefits, helping preserve income and assets that would otherwise be depleted by care costs.  Without LTC insurance, income reallocation or asset liquidation may trigger income taxes.  Additionally, potential payroll tax implications loom, as nearly 30% of states have proposed imposing new mandatory payroll taxes on those who do not have private LTC coverage in order to fund the LTC burden on Medicaid.  LTC premiums may be tax deductible for individuals, and corporations can benefit from tax advantages by paying premiums on behalf of employees.

The FLI Thought Leadership Breakfast series aims to provide our clients with access to industry thought leaders and experts who can provide valuable insights to help them make informed financial decisions. We were pleased to feature Natalie Karp as our guest speaker and remain committed to providing this level of expertise through future events.  If you or your family have an interest in Long-Term Care Insurance, please do not hesitate to reach out to any of us here at FLI.