Long Term Care Planning
Meet Patrick Swayne, CLU our new RVP

800.842.8289

Long Term Care

Long Term Care Planning Couple on Beach

Long Term Care - 360° »

LTC-360: Survey of LTC Funding SolutionsVisit our Micro-Site for a comprehensive survey of available Long Term Care Funding Solutions.

LTCi: Connecting People to what Matters Most — Family

Long Term Care Planning for Families

The Importance of Family
People who buy an LTCi policy, generally do so because they love their family. In a survey of LTCi policyholders, over half of those we talked to said they bought their policy because they’d been a caregiver for someone with a chronic illness or disability. That experience left them determined not to let the same thing happen to their family. These people told us loud and clear they didn’t want their kids to have to take care of them.

What it Means to be a Caregiver
Research reveals most caregivers are family members. According to the American Association for Long-Term Care Insurance (AALTCI), the typical caregiver is a 48-year-old woman who provides more than 20 hours of care each week. Add that to an already full schedule that includes working and raising a family and you can see how taking on the responsibility of caring for an aging parent is not an easy task.

What’s the Cost?
Many people think there’s no cost associated with kids caring for a parent. But the costs are real. There’s a financial cost when a child has to quit a job, reduce work hours or pass up a promotion in order to be able to help a parent. There’s a physical cost that comes from being stretched too thin as caregivers neglect their own health and often become ill themselves. And there’s an emotional cost when hard feelings arise between family members if caregiving duties are not equally divided.

The LTCi Advantage
An LTCi policy can provide a real advantage for families struggling to care for a loved one. Policy benefits can be used to hire caregiving services that supplement the care provided by family members. And that’s a good way to help people stay connected to what matters most…their family.

Taxation & Long Term Care Insurance

TABLE 1
Entity Deductibility Income Reporting Discrimination Rules Tax Treatment
of Benefits
Individual Taxpayer who does not itemize deductions No LTCi premium
deduction available
N/A N/A Tax-Free
Individual who itemizes deductions The lesser of the Premium or the Eligible Premium from Table 2.  Medical Expenses are deductible to the extent they exceed 7.5% of Adjusted Gross Income. N/A N/A Tax-Free
Self-Employed Percentage from Table 2 of the lesser of Premium or Eligible Premium is deductible as a business expense.  The remaining percentage is included as a Medical Expense under the 7.5% rule. No None Tax-Free
S Corporations
Partnerships
LLC's
Same as self-employed The portion of the Premium paid by the entity on behalf of a partner is included in the partner's income. None Tax-Free
C Corporations The entire Premium is fully
deductible by the corporation.
No None Tax-Free

 

TABLE 2
Section 213(d)(10)
Tax Year 2013 2014 2015
Age at end of
Tax Year
Eligible Premium
Eligible Deduction: 100%
Eligible Premium
Eligible Deduction: 100%
Eligible Premium
Eligible Deduction: 100%
40 & Under $360 $370 $380
41 - 50 $680 $700 $710
51 - 60 $1,360 $1,400 $1,430
61 - 70 $3,640 $3,720 $3,800
71 & Over $4,550 $4.660 $4,750

Download 2014 LTCi Tax Summary