Questions on Long Term Care

[Lakshmi]

Thank you Jack. I did read your website and you would be a great help, I'm sure.

I did find a guy an hour and a half away (three hour round trip), to get me going.

I know who to ask though later down the road if I have more questions I can't figure out here. I'm seeing more clearly now, lol, this LTC is a totally different bird, and WOW, the range of differences of premiums, plans, etc between companies is something that takes awhile to digest and filter.

I ended up meeting with the client anyway, and put him on a higher end CI, but we are also working together to get him the traditional LTC plan as well for exactly what he wants to fill the long term care need. For him, it looks like MoO is going to be the deal.

This guy can afford to protect himself with insurance ten ways from China, but I'm sure LTC will still not be something I'll do a whole lot of...most the people I deal with, small business owners can afford protection, but health, life, CI, business, workman's comp, auto, home, etc...after that, most won't have enough or the "want" enough to buy, I think. Just thinking out loud here in the last paragraph...thanks again.

 

[scagnt83]

I'm sure LTC will still not be something I'll do a whole lot of...most the people I deal with, small business owners can afford protection, but health, life, CI, business, workman's comp, auto, home, etc...after that, most won't have enough or the "want" enough to buy, I think. Just thinking out loud here in the last paragraph...thanks again.

Affluent small business owners who are 50+ are one of the best demographics to sell LTCI to. If you are not talking to them about it then you are missing out big time.

 

[Mr_Ed]

Affluent small business owners who are 50+ are one of the best demographics to sell LTCI to. If you are not talking to them about it then you are missing out big time.

the life and ci premiums are NOT pretax.
the LTCi premiums are (in most cases).

no brainer for a business owner.

 

[casailio]

Just to add --- LTC premiums ARE tax deductible for individuals, joint returns, etc.

 

[L5tc]

LTC is only deductible after someone exceeds to 10% of gross limit. If they make 100k they can only write off what exceeds 10k of medical a expenses and then the deduction is based on an age based schedule. It's not much of a write off.

 

[casailio]

Every little bit helps against the Tax Monster.

 

[Mr_Ed]

LTC is only deductible after someone exceeds to 10% of gross limit. If they make 100k they can only write off what exceeds 10k of medical a expenses and then the deduction is based on an age based schedule. It's not much of a write off.

There are lots of ways to save taxes on LTCi premiums.
The itemized deductions on Schedule A are the worst.

Here are others:

10 Ways To Reduce Taxes With Long-Term Care Insurance - LTCFacts.org

 

[L5tc]

Not the greatest information. The 2% owner in a s corp has to include the premium in their salary. Yes the company writes it off but that's 1/2 the story. Better to talk to a good tax advisor in your state than anyone on here.

 

[Mr_Ed]

Not the greatest information. The 2% owner in a s corp has to include the premium in their salary. Yes the company writes it off but that's 1/2 the story. Better to talk to a good tax advisor in your state than anyone on here.

You're only half right.

The 2% owner has to include the premium in his/her salary but then he/she can deduct the age-based premium amount on his personal tax return under the self employed health insurance deduction.

 

[L5tc]

On a personal tax return - maybe - not as owner of a corp.

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You're more correct than I am so I stand corrected. However the process is not so simple as that list you put up makes it sound. Meaning the clients hear there's a deduction and they run with it. Unless their tax advisor is ready, or we have the opportunity to walk the tax professional through the deduction there's resistance.

That's why I like to keep the Genworth guide ready before they do their taxes. That's the best one I know of.