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Long Term Care Planning
...protecting families, assets, income,
past
successes & future dreams!
Genworth's Leadership Site Explains a lot!
Genworth's LTC Insurance Pricing Philosophy
LTC Tax Guide for 2011
LTC Links
The Baby-Boomers have reshaped American economic life. Their impending retirements will bring profound economic opportunities. Be there with our products, service and marketing support and you'll stand to benefit by counseling baby-boomers in preparation for active aging, long productive lives in retirement, and the need to plan for the possible illnesses and disabilities requiring long term care. Call now! We'll help you with this.
Taxation & Long Term Care Insurance
| TABLE 1 | ||||
| Entity | Deductibility | Income Reporting | Discrimination Rules | Tax Treatment of Benefits |
| Individual | 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 | |||
| Tax Year | 2010 | 2011 | 2012 |
| Age at end of Tax Year |
Eligible Premium Eligible Deduction: 100% |
Eligible Premium Eligible Deduction: 100% |
Eligible Premium Eligible Deduction: 100% |
| 40 & Under | $330 | $340 | $350 |
| 41 - 50 | $620 | $640 | $660 |
| 51 - 60 | $1,230 | $1,270 | $1,320 |
| 61 - 70 | $3,290 | $3,390 | $3,500 |
| 71 & Over | $4,110 | $4,240 | $4,370 |
For more indepth information see LTC Tax Guide for 2011
Many of our producers find the LTC Decison Tree (below) to be a useful guide in
their discussions with prospective clients in Long Term Care planning sessions.
| Percentage of LTCi Applicants Qualified for Good Health Discount |
Percentage of LTCi Applicants Denied Individual Coverage |
||
|---|---|---|---|
| Applicant Age | Average in 2007 | Applicant Age | Average in 2007 |
| Under 30 | 63.2% | Under 50 | 7.3% |
| 30 to 39 | 66.3% | 50 to 59 | 13.9% |
| 40 to 49 | 66.8% | 60 to 69 | 22.9% |
| 50 to 59 | 51.5% | 70 to 79 | 44.8% |
| 60 to 69 | 42.2% | 80 & Over* | 69.8% |
| 70 to 79 | 24.2% | ||
| 80 & Over | 12.9% | ||
| * Note: Several insurers no longer accept applicants age 80 or older. Source: American Association for Long-Term Care Insurance 2008 Study of 250,000 individual policy applicants (2007 & 2008 data) and February 2006 study of 100,000 individual policy applicants (2005 data). |
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