Long term care insurance protects a person from the high costs associated with nursing home stays and/or professional home care. The coverage is triggered by cognitive impairment or the inability to perform the activities of daily living - bathing, dressing, toileting, transferring, continence and eating.

Here's why you may want to consider long-term care insurance:

• One in five Americans over age 50 is at high risk of requiring long-term care services in the next 12 months.
• The average cost of a one-year stay in a nursing home ranges from $40,000 to $80,000.
• Neither Medicare nor private health insurance covers most long-term care costs.
• 46% of those admitted to a nursing home are impoverished within 3 months, and 72% become penniless within 1 year.

Stratford will help you select the right long-term care coverage for your needs. Below are some more facts about this coverage:

• It generally reimburses a set amount per day (e.g. $100 to $150) for care in a hospital or at home.
• It varies according to your daily benefits, how long the benefits last, the waiting period (0 to 80 days) and the existence of inflation protection.
• Most policies cover the costs associated with assisted living facilities, adult day care, chore services, bed reservation, respite care and caregiver training.
• Annual premiums -- usually ranging from $1,000 to $4,000 - are far less if you're in your 50s as opposed to your 70s.

Employer-sponsored long term care coverage

• Some corporations can get a 100% tax deduction.
• Policies can be qualified or non-qualified.
• Proceeds under a Qualified plan are not regarded as income and would thus be tax-free to the insured.
• Non-qualified plans are not taxable, and proceeds may be taxed when paid to the insured.
• For regular C corporations, employer premium contributions are deductible as a business expense and not considered income to the employee.
• For an individual to receive a tax deduction, the insured must first have long term care premiums and/or unreimbursed medical expenses in excess of 7.5% of their adjusted gross income. This deduction is then limited to those excess dollars according to maximums based on age.
• Deductions for self-employed taxpayers will be phased in from 40% to 80% by the year 2006.