Increased Long-Term Care Insurance Tax Deductible Limit

Doctor's charts with stethoscope and pen

Disclaimer: With Medicaid, VA, and insurance regulations frequently changing, past blog posts may not be presently accurate or relevant. Please contact our office for information on current planning strategies, tips, and how-to's.

The odds of needing long-term care sometime during your lifetime are very high. In fact, about 70% of people turning 65 will need long-term care sometime in their lifetime1. According to Genworth, the cost of care can exceed $80,000 annually.  Options to pay for care include pre-planning and crisis planning.

The best option to pay for long-term care costs is to pre-plan. The most common way to pre-plan is to purchase long-term care insurance. There are several advantages to purchasing long-term insurance.  However, the main advantage of purchasing it when you’re young is that the premium is more reasonable and you are unlikely to be denied coverage. Another advantage is that the monthly premium can be tax deductible. In fact, the tax-deductible limit has increased for 2016 – click here for the details.

Of course, you should always consult a tax professional to get more information on your specific situation.