American Association for Long-Term Care Insurance

October 23, 2017 -  Los Angeles, CA — Tax deductible limits for traditional long-term care insurance premiums paid in 2018 have been increased according to the American Association for Long-Term Care Insurance.

“The tax deductibility of some tax-qualified long-term care insurance provides significant value to consumers especially after they retire” explains Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).   “The special tax advantages are only available with tax-qualified health-based long-term care insurance though it would be valuable one day to see them added to linked-benefit products such as life insurance or annuity policies that can provide a future long-term care benefit.”

According to Slome, the vast majority of new long-term care insurance policies purchased today are combo products.  “Only traditional long-term care insurance policies have the benefit of potentially being tax-deductible to an individual,” Slome acknowledges.  “After retirement when a person’s income often declines, the tax deductions for your premium costs can take on a significant added value.”

Premiums paid for traditional long-term care insurance are includable in the term ‘medical care’.   The following are the just announced 2018 limits:

Attained Age Before Close of Taxable Year         2018 Limit
40 or less                                                                   $420
More than 40 but not more than 50                           $780
More than 50 but not more than 60                          $1,560
More than 60 but not more than 70                          $4,160
More than 70                                                            $5,200

“Our nation needs to have more Americans saving for retirement and also having a plan to pay for the very real risk of needing long-term care,” Slome adds.  “A 70-year old couple has the potential to deduct over $10,000 each year and that should give one real pause to reflect on the value of planning while you can still health-qualify for this protection.”

The American Association for Long-Term Care Insurance advocates for the importance of planning and supports insurance and financial professionals who provide long-term care financing solutions.  To see prior year’s tax deductible limits, visit the organization’s website (www.aaltci.org/tax) or call the organization at 818-597-3227 to connect with a long-term care insurance professional who can provide no-obligation and cost comparisons.

 

Tags: 2017, 2018, long term care, long-term care insurance, Medicare, tax, tax deduction

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