Tax Season is the Right Time to Think Long-Term 

Long-Term Care Insurance Premiums Can Provide Valuable Tax Deductions

WASHINGTON, DC – March 3, 2008 – As Americans begin to collect financial documents and receipts for tax season, many could overlook a potentially valuable deduction: premiums paid on long-term care insurance.

Long-term care insurance is an important asset for retirement and health care planning. In 2007, approximately half a million Americans invested in long-term care insurance – either through their employer or individually – according to the American Association for Long-Term Care Insurance, an industry group.

“As more Americans and employers invest in long-term care insurance, it is important that they know their premiums may be tax-deductible,” said Robert Burke, long-term care insurance advisor for Long-Term Care Quote (www.LTCQ.net). “And for those considering purchasing long-term care insurance now, they should consider the tax benefits they could reap this time next year.”

Financial experts estimate that nearly half of the American population that reaches the age of 65 will spend some time in a nursing care or long-term care facility. At the current average rate of over $77,000 per year, costs for long-term care can quickly erode retirement savings. Long-term care insurance provides the peace of mind that nursing home bills won’t crush retirement nest eggs in the future.

Now, in addition to peace of mind, long-term care insurance may offer state and federal tax benefits to policyholders. For 2007 federal taxes, the maximum allowed deductible for long-term care premiums are based on the age of the policyholder.

Other Long-Term Care Insurance Tips from Long-Term Care Quote

In addition to looking into the tax benefits of long-term care insurance, Mr. Burke also recommends the following tips for long-term care insurance shoppers:

1. Understand your options. If you choose long-term care insurance, the younger and healthier you are the lower your premium will be.

2. Look for policies that cover home services. Most people want to stay in their home as they age, so insist on a long-term care insurance policy that covers homemaker services, allows for home modifications and pays a monthly maximum for home care.

3. Research the local costs in your area and find policies to match. Costs can vary from region to region, so look for a daily benefit that would cover the average daily nursing-facility cost in your area.  If you are planning to relocate, look at the cost in that area.

4. Ask about the insurer’s rating. Always insist on a policy from an insurance company that is “A” rated or better.

5. Ask about partnership plans. Find out whether your state is part of the Partnership for Long-Term Care and if there are special “partnership” plans for your state that help you preserve more of your assets if you use your entire insurance benefit.

About Long-Term Care Quote and Longevity Alliance

Long-Term Care Quote (www.LTCQ.net) specializes in long-term care insurance. Licensed agents are available by telephone and sell policies nationwide. Consumers can generate their own long-term care insurance quotes online at www.LTCQ.net. Long-Term Care Quote is a subsidiary of Longevity Alliance.

Based in Washington, DC, and with call-center operations in the Phoenix, Arizona area, Longevity Alliance Inc. helps older Americans find the right products to meet their needs by surveying the marketplace and contracting with high quality financial and insurance companies to provide consumers with a range of choices in each product category. Longevity Alliance is staffed with experienced senior executives in aging, insurance and financial services who have spent decades working for the biggest names in products and services for older Americans. The company also publishes Momentum¸ a monthly newsletter for older Americans. Consumers can sign up for a free online copy at www.momentumtoday.com. For more information, visit www.longevityalliance.com. 

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