Category Archives: Long term care Insurance

Long Term Care insurance premiums can be tax deductible

IRS increases 2017 tax deduction limits for LTC insurance
The 2017 deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:
Attained age before close of tax year 2016:
40 or less $390 -$410
More than 40 but not more than 50 $730 -$770
More than 50 but not more than 60 $1,460 -$1,530
More than 60 but not more than 70 $3,900- $4,090
More than 70 $4,870 $5,110
Source: IRS Revenue Procedure 2015-53 (2016 limits) and 2016-55 (2017 limits).
These amounts can be an itemized deduction for individuals and businesses. Specific details depending on your situation & business type.
Get in touch with us for a detailed written description and a customized quote for Long Term Care insurance or Life/LongTermCare plans.

November is Long Term Care Awareness Month

How will you pay for Long Term Care services?

People work a lifetime to accumulate assets to see them through retirement. Unfortunately, relying on those assets to fund long-term care services may mean:
• Selling stocks or property, cashing in CDs or dipping into 401(k) or savings accounts
• Paying unexpected capital gains tax, income tax and potential surrender charges
• Foregoing returns the liquidated assets were expected to generate
• Abandoning plans to leave an inheritance to children and grandchildren

Planning now means having better choices later.

Long Term Care Premiums Tax Deductions

There are advantages that you might be eligible for with a Long Term Care Insurance policy.

• Do you own a business?
• Are you aware of the potential Long Term Care tax advantages of owning a business?

You might be interested in a Quick Reference Guide that gives a summary of Long Term Care premium tax treatment for different types of business entities.

Contact us for details

Should You Terminate Term Life Insurance for Long-Term Care Insurance?

Agent talking to prospectsIs it a good idea to terminate a term life insurance policy and use the money to buy Long-Term Care Insurance? This was the question a healthy individual, age 65, who is planning to work full-time until 70, and has a wife age 55, asked.

Term Life Insurance is one of the cheapest ways to ensure maximum financial protection for your dependents. It would not be ideal to terminate term life Insurance, as his goal is to provide financial protection to his wife in the event of death.

Long-Term Care Insurance would help in paying for assistance, if he becomes chronically ill or disabled, and requires assistance with activities of daily living. The premium will depend on various factors such as age, current health condition, the limits of benefits chosen, etc.

Long-Term Care Insurance should be bought considering the affordability to pay the premium even after retirement. If the premium payment becomes unaffordable and he stops paying the premium, the policy terminates, and all benefits accrued will be lost.

The decision to buy Long-Term Care Insurance should be based on his income, expenses and other finances before and after retirement. Also, family longevity and other health concerns are to be kept in mind.

Younger individuals have an alternative that is more flexible and can relatively be more affordable than Long-Term Care Insurance. That is buying a Whole Life Insurance Policy, with a Long-Term Care rider.

Whole life policies are costlier than the Term Life Insurance, but they have a savings element added to the insurance benefit. It builds cash value for as long as you pay the premiums. The Long-Term Care rider is a relatively cheap add-on when compared to a standalone Long-Term Care Insurance policy. It should be considered carefully, as the benefits available under the rider may be less restrictive.

Proper planning is needed when it comes to your future financial health. To get the facts and understand all the options available based on your own unique needs; fill out the form to the right to download your long-term care insurance planning guide today.

The information is free; the results could pay you hundreds of thousands of dollars when you need it most.

Critical things many people don’t know about Long-Term Care Insurance

Things people don't know about Long-Term CareLong-Term Care Insurance plans have come a long way in offering convenient and flexible long-term care solutions, since the early days. Still, there are certain misunderstandings and objections in the minds of some people. Let’s have a look at some of these…

The most common misunderstanding regarding long-term care insurance is that it provides only nursing care benefits. But, the fact is that it covers home care for a person who opts to “age in place” as well as adult day care and assisted living facilities. American Association for Long Term Care Insurance (AALTCI) statistics shows that Home Care claims are the most among newly opened long-term care insurance claims in recent years.

Today, the benefits payable under long-term care insurance policies are very flexible. Most policies offer services such as home modifications to make your stay at home longer and safer. Modifications such as widening doorways, building wheelchair ramps or installing lifts and handrails are provided under long-term care insurance policies.

The role played by family caregivers is very critical in long-term care. Long-term care insurance policies offer options that make it comfortable for families to care for the elders in their family. Care giver training for family members is provided to ensure that the recipients are getting the best possible care. Even, care provided by family friends, acting as informal caregivers, is reimbursable under some policies.

If the one insured person exhausted his or her benefits, he or she can use the benefits available to his or her spouse. This enables the couples to share their coverage and maximize the benefits. Many Long-term care insurance policies offer this optional benefit called “shared care”.

Long-term Care Insurance policy should be a key element in your retirement plan. It is always better to plan ahead and start early. Age and health conditions are the two most important factors when you are looking for an insurance policy. At a younger age, these factors could be more favorable to you. The coverage will be affordable too. Younger age doesn’t imply that you don’t need any care. Accidents and illnesses that can lead to availing extended personal care can happen at any age. So, It is always better to start early.

The need for long-term care increases, as people are beginning to live longer. As the AALTCI states that during the year 2014, the total amount paid as benefits under Long-Term Care Insurance by the insurers has gone up from $7.5billion to $7.85billion, benefiting about 250,000 individuals. It is true that people underestimate their life expectancy and aren’t prepared to meet the consequences of not planning.

Getting the conversation started about long-term care insurance planning is easy. Simply fill out the form to the right and download your free planning guide today. A specialist with California Long Term Care Insurance Services will help you understand your options and pick the plan most appropriate to your unique needs.

Could Long Term Care Insurance Become Mandatory?

Mandetory Long Term Care InsuranceYou know when the powers-that-be on Capitol Hill start seeing the effects of financial strain in their own lives from long-term care service needs, research is done and laws are made. We have now seen the beginning of the research being done.

In a recent Forbes article from December 3, 2015, we learned that The Urban Institute and Milliman, Inc., a research group and actuarial firm, respectively, led the charge on developing complex statistical models to answer the questions about future long-term  care insurance in the US.

According to the article, the average cost for a typical male and typical female requiring long-term care services is 91,000 and 182,000 respectively. Considering under 8% of people in the US actually buy long-term care insurance and either pay the costs out of pocket or fall back on welfare and Medicaid services, decision makers are going to take action like they have with the Affordable Care Act.

Medicaid cannot continue to cover the costs of long-term care services for the long term, which has now eclipsed $146 billion ($146,000,000,000.00).

“Most don’t understand the risk they face,” said Debra Whitman, chief public policy officer for AARP, about the large majority of Americans who do not have long-term care insurance. “Many believe mistakenly that Medicare will pay for long-term services and supports,” Whitman added.

Several options were discovered, but the most obvious one for policy makers was cited when the article said, “Mandatory programs would cost less for Medicaid. If the major aim is to reduce Medicaid costs, the comprehensive and back-end mandatory programs would be most beneficial”.

If the public or policymakers take action on the two organizations findings, that remains to be seen. The good news is, before we are forced to take policies with cut benefits or attempted one-size-fits-all coverage, we can at least get the facts about long-term care insurance and know what the current options and prices are.

This can be done quick and easy when you speak to a California Long Term Care Insurance Services specialist about your rights and options under the current programs. Long-term care insurance can be affordable when you take the time to plan your needs.

Fill out the form to gthe right of this page and contact your CLTC specialist today!