Tax-Advantaged Long-Term Care Insurance Provides Special Benefits Exclusively For Business Owners
Posted by Dorothy at 8/13/2009 10:26 PM 
Categories: uncategorized
Tags: LTC insurance employee benefits long term care insurance LTC
Categories: uncategorized
Tags: LTC insurance employee benefits long term care insurance LTC
To encourage more Americans to plan for the potential risk of needing costly long-term care, the Federal government and a growing number of states now offer significant tax-saving incentives for the purchase of special tax-qualified long-term care insurance.
"The cost of long-term care coverage could be fully tax-deductible," explains Dorothy McMahon of McMahon and Associates Ltd., located in Bloomfield Hills, Michigan. "Most individuals are unaware of this fact and the significant savings opportunity it provides and some of the exclusive benefits offered to the small business owner."
Legislation passed in 1996 created generous incentives for business owners to purchase long-term care insurance for themselves, spouses as well as their key executives. As a result, according to the American Association for Long-Term Care Insurance, some eight million Americans now own this protection with some 400,000 new policies issued last year.
"The rules vary based on the type of business entity but in general, business owners can deduct 100 percent of insurance premium paid for employees. Owners can deduct up to 100 percent of their own premium. In addition, the law allows spouses to be insured under the company-plan, even if they are not employed. Most insurers today offer significant discounts when both husband and wife are protected," explains McMahon. "When you factor in the tax savings applied to both policies, it's almost like getting two people covered for the cost of one."
Businesses that are established as C-Corporations benefit today from full deductibility for owners and spouses, notes McMahon. The owner can offer tax-deductible long-term care insurance coverage to whomever they choose on a selective basis - even if that's merely the owner and his or her spouse, McMahon adds. This is truly one of the last remaining tax-advantaged benefits available especially for owners.
In most states, insurers offer paid-up options that allow the business owner to have their protection fully paid for upon reaching age 65 or after a pre-determined time period, say 10 years. This is an important advantage available to a business owner who wants to have their coverage paid-up fully before they retire or sell the business, adds McMahon. You're covered for life without having to write checks when you are retired.
Dorothy McMahon, president of McMahon and Associates in Bloomfield Hills, is a specialist offering “Straight Talk about Long-Term Care Insurance.” She has brought her program to professional associations, family support groups, meetings, and conferences. Contact her at (248) 844-9787 or LTCINSUSA@AOL.COM and visit www.mcmahonltcins.com.
"The cost of long-term care coverage could be fully tax-deductible," explains Dorothy McMahon of McMahon and Associates Ltd., located in Bloomfield Hills, Michigan. "Most individuals are unaware of this fact and the significant savings opportunity it provides and some of the exclusive benefits offered to the small business owner."
Legislation passed in 1996 created generous incentives for business owners to purchase long-term care insurance for themselves, spouses as well as their key executives. As a result, according to the American Association for Long-Term Care Insurance, some eight million Americans now own this protection with some 400,000 new policies issued last year.
"The rules vary based on the type of business entity but in general, business owners can deduct 100 percent of insurance premium paid for employees. Owners can deduct up to 100 percent of their own premium. In addition, the law allows spouses to be insured under the company-plan, even if they are not employed. Most insurers today offer significant discounts when both husband and wife are protected," explains McMahon. "When you factor in the tax savings applied to both policies, it's almost like getting two people covered for the cost of one."
Businesses that are established as C-Corporations benefit today from full deductibility for owners and spouses, notes McMahon. The owner can offer tax-deductible long-term care insurance coverage to whomever they choose on a selective basis - even if that's merely the owner and his or her spouse, McMahon adds. This is truly one of the last remaining tax-advantaged benefits available especially for owners.
In most states, insurers offer paid-up options that allow the business owner to have their protection fully paid for upon reaching age 65 or after a pre-determined time period, say 10 years. This is an important advantage available to a business owner who wants to have their coverage paid-up fully before they retire or sell the business, adds McMahon. You're covered for life without having to write checks when you are retired.
Dorothy McMahon, president of McMahon and Associates in Bloomfield Hills, is a specialist offering “Straight Talk about Long-Term Care Insurance.” She has brought her program to professional associations, family support groups, meetings, and conferences. Contact her at (248) 844-9787 or LTCINSUSA@AOL.COM and visit www.mcmahonltcins.com.
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