Long-Term Care Insurance Tax Deductible Limits Increase According to AALTCI Director

Los Angeles, CA, October 25, 2017 --(PR.com)-- 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.