Combination Policies Provide A Guaranteed Death Benefit To Beneficiaries If Long Term Care Is Not Needed

Long Term Care, , , ,

As long term care policies become more expensive, and harder to qualify for, our clients are asking us to explore alternative long term care planning options.

An often overlooked solution is a combination Long Term Care/Life Policy.

Here are some policy highlights:

  • Both spouses can be covered under one policy
  • Long term care benefits include home care, assisted living, nursing home/Alzheimer’s
  • Unused long term care benefits go to heirs in a tax free death benefit
  • Premiums are guaranteed
  • Long term care benefits are tax free

IRS ISSUES LONG TERM CARE PREMIUM DEDUCTIBILITY LIMITS

Long Term Care, , , , , , ,

The Internal Revenue Services is increasing the amount taxpayers can deduct from their 2015 taxes as a result of buying Long Term Care Insurance.

Premiums for “qualified” long term care insurance policies are tax deductible to the extent that they, along with other unreimbursed medical expenses, exceed 10 percent (7.5% for those age 65 or older) of the insured’s adjusted gross income.However, there is a limit on how large a premium can be deducted, depending on the age of the taxpayer at the end of the year:

At the end of the year 2014 2015
Ages 40 or less $ 370 $ 380
Ages 41 to 50 $ 700 $ 710
Ages 51 to 60 $ 1,400 $ 1,430
Ages 61 to 70 $ 3,720 $ 3,800
Ages 71 or more $ 4,660 $ 4,750

There are more liberal rules for the self-employed, partnerships and corporations. Please give us a call for a further explanation if this applies to you.