| A long term care insurance policy helps put you in control when you need it most - by helping to protect your assets and to ensure that you receive quality care in the setting you want. That's why it's so important to select a policy that's right for you. A good plan design when judging policies is the National Association of Insurance Commissioners' (NAIC) model laws and regulations, which recommends: * At least one year of nursing home or home health care coverage, including intermediate and custodial care. Nursing home or home health care benefits shouldn't be limited primarily to skilled care. * Coverage for Alzheimer's disease. * An inflation protection option. * An "outline of coverage" that systematically describes the policy's benefits, limitations and exclusions, and lets you compare it with others. * A guarantee that the policy cannot be cancelled, non-renewed or otherwise terminated because you get older or suffer deterioration in your physical or mental health. * The right to return the policy for a full premium refund within 30 days, if after having received the policy, you decide you don't want it. * No requirements that policyholders first: * Be hospitalized in order to receive nursing home benefits or home health care benefits. * Receive skilled nursing home care before receiving intermediate or custodial nursing home care. * Receive nursing home care before receiving benefits for home health care. Also, be sure to consider the company behind the plan. Look at its track record in terms of experience in long term care insurance, as well as its ratings and financial stability. When researching for a long term care insurance plan you want one that requires only two (2) ADLs to trigger benefits for home, community, or nursing home care. Some plans, especially group plans require three (3) ADLs for nursing home benefits to be triggered. This means you may have to wait a lot longer before the insurance pays. We will be glad to work with you to design a plan just for your needs. We have years of experience and work with the top long term care insurance companies. Tax Deductions For Long Term Care Insurance As an individual you can only deduct health care expenses that exceed 7.5% of your adjusted gross income (line 38 on Form 1040). You should consult with your accountant or tax advisor about any tax consequences regarding long term care insurance. Some states have greater LTCI tax incentives than the Federal, here's a list of states. Different types of business and corporations may have tax deductions available for long-term care insurance. These include whether you are an individual, a partnership, a sole-proprietorship or a S, C, or LLC corporation. Some deductions are subject to age-based eligible amounts which are increased to allow for inflation. The most common policy is a "tax qualified" or TQ plan. NTQ or "not tax qualified" plans, that is the premiums are not tax deductible and the benefits you receive are considered income and therefore taxable. Most companies today sell TQ individual policies because of the tax consequences. |