Understanding the Costs and Financial Benefits of Long-Term Care Insurance

While the number of 401(k) millionaires is reaching record highs, the rising costs of long-term care can quickly erode these retirement savings. Without proper planning, including Long-Term Care Insurance, even a robust 401(k) may not be enough to cover the substantial expenses associated with aging and long-term care.

Did you know your Long-Term Care Insurance premium could be tax deductible? In this article, we’ll explain how you can deduct your premium from your income taxes. We’ll also discuss essential tax incentives associated with Long-Term Care Insurance.

Federal law provides important tax benefits for qualified Long-Term Care Insurance. This includes individuals as well as small and large businesses (S-Corporations, C- Corporations, LLCs, partnerships, and sole proprietors).

What’s the cost of Long-Term Care Insurance? It’s important to know how much you’ll pay for coverage each month, especially if you’re trying to plan for your future long-term care needs. In this article, we’ll break down the factors that affect premiums and give you policy cost examples.

Nineteen states, including California and New York, are considering following Washington's lead in taxing those who do not own Long-Term Care Insurance. These plans may vary dramatically, but they illustrate the importance of planning now to protect assets, access quality care, and even avoid tax in the decades ahead.