Long Term Care Insurance State Tax Deduction Guide Published

Long term care insurance premiums may be fully tax deductible for individuals and a growing number of states now offer deductions and even tax credits to those purchasing this important coverage.

According to the American Association for Long Term Care Insurance, the national trade organization, tax deductibility gives individuals and business owners one very important reason to consider ways to address future long term care needs.

“Americans are living well into their 80s, 90s and even longer when the likelihood of needing extremely costly long term care services is almost a guarantee,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group charged with creating awareness for long term care related issues.  “The  federal and state governments recognizes this and offers the tax incentives to encourage more people to plan.”

Individuals may be able to deduct long term care insurance premiums paid from their 2011 federal income taxes.  The federal levels are based on your age, Slome notes, ranging from $340 to $4,240 per-person and increase for new policies purchased in 2012.    Individuals face certain limitations that are not imposed on self-employed or corporations.  “These entities may able to make the full cost tax deductible,” Slome adds.

In addition to federal tax deductibility limits, a growing number of states now offer either tax deductions or tax credits to encourage state residents to purchase long-term care insurance.

The American Association for Long-Term Care Insurance has just published a state-by-state listing of available tax deductions on the organization’s website at www.aaltci.org/tax.

To learn more about long-term care planning and get long-term care insurance costs from a designated expert visit the American Association for Long Term Care Insurance Information Center.

Smoking And Weight Tied To Future Brain Shrinkage, Increased Long Term Care Insurance Need

Smoking, having high blood pressure or diabetes and being overweight during your middle years may cause brain shrinkage and lead to cognitive problems up to a decade later.

According to a new study published in Neurology, the medical journal of the American Academy of Neurology these factors appear to cause the brain to lose volume. Some 38.7 million Americans age 65 and older reported having one or more cognitive disorders according to the 2011 Long-Term Care Insurance Almanac published by the American Association for long-Term Care Insurance.

Health conditions increased the development of lesions secondary to presumed vascular injury, and also appeared to affect its ability to plan and make decisions as quickly as 10 years later. The findings provide evidence that identifying these risk factors early in people of middle age could be useful in screening people for at-risk dementia and encouraging people to make changes to their lifestyle before it's too late.

The study involved over 1,300 people without dementia with an average age of 54. Participants had body mass and waist circumference measures taken and were given blood pressure, cholesterol and diabetes tests. They also underwent brain MRI scans over the span of a decade, the first starting about seven years after the initial risk factor exam. Participants with stroke and dementia at baseline were excluded, and between the first and last MRI exams, 19 people had a stroke and two developed dementia.

Researchers found that people with high blood pressure developed small areas of vascular brain damage, at a faster rate than those with normal blood pressure readings. They also had a more rapid worsening of scores on tests of executive function, or planning and decision making, corresponding to five and eight years of chronological aging respectively.

People with diabetes in middle age lost brain volume in the hippocampus at a faster rate than those without diabetes. Smokers lost brain volume overall at a faster rate than nonsmokers and were also more likely to have a rapid increase in white matter hyperintensities.

"Unhealthy habits come back to haunt millions at older ages," explains Jesse Slome, executive director of the long term care insurance association. "It creates an increased risk of needing long term care in your 80s and 90s a reason why planning prior to retirement is a must especially for those still in good health."

New Report Examines What Consumers Really Pay For Long-Term Care Insurance

One fourth (27.8%) of individuals purchasing long-term care insurance during the first half of 2010 who were under age 61 pay less than $1,000 a year according to a new report issued by the American Association for Long-Term Care Insurance (AALTCI).

"The single greatest misconception held by consumers is the actual cost of coverage," explains Jesse Slome, AALTCI's executive director. "Most people perceive the cost is actually quite a bit higher than the real amounts paid by large percentages of those purchasing coverage."

The Association reveals that nearly one-in-five (19.4%) purchasers under age 61 pay between $20 and $30 a week for new policies. Over one-fourth of buyers (28.9%) in this age band pay between $1,500 and $2,500 a year with the remainder paying more. Less than one-tenth of these buyers (6.8%) pay $4,000 or over.

"Studies that report average premium costs regrettably mislead the public into the perception that long-term care insurance is expensive," Slome explains. "Averages include large numbers of older buyers and other factors that result in higher costs. The fact is that many people pay far less than the average amounts released by industry sources."

Costs for long-term care insurance can vary significantly based on the age when one applies, the ability to take advantage of discounts offered to healthier applicants as well as the amount of future benefits desired.

Insurance rates are based on the attained age of the applicant. Older buyers pay more and according to the latest data of real buyers, less than a tenth (9.0%) of buyers between ages 61 and 75 paid $1,000 or less when they applied for new coverage.

According to the Association, the average age for new individual purchasers is now 57. Eight out of 10 (80.5%) of new individual buyers in 2009 were younger than age 65 when applying for long-term care insurance according to AALTCI's annual research of 155,000 new applicants. The pricing data is based on an analysis of over 200,000 purchasers of partnership qualified LTCi policies.

What Real People Pay Yearly

Buyers Under Age 61

Less than $999 27.8%
$1,000 - $1,500 19.4%
$1,500 - $2,500 28.9%
$2,500 - $4,000 17.1%
$4,000 and over 6.8%

Buyers Age 61 - 75

Less than $999 9.0%
$1,000 - $1,500 12.5%
$1,500 - $2,500 34.5%
$2,500 - $4,000 28.4%
$4,000 and over 15.6%

Source: American Association for Long-Term Care Insurance, November 2010, Price Study

2011 Long Term care Insurance Tax Deduction Limits Announced

November 2, 2010. The Internal Revenue Service (IRS) announced increased deductibility levels for long-term care insurance policies purchased in 2011.

"For taxable years beginning in 2011, the limitations have been increased," explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance (AALTCI), the industry's trade association.

“Tax advantaged long-term care insurance remains one of the few remaining significant tax-savings benefits especially meaningful for small business owners."

The deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:


Attained Age Before Close of Taxable Year

2011 Deductible Limits
40 or less $ 340
More than 40 but not more than 50 $ 640
More than 50 but not more than 60 $1,270
More than 60 but not more than 70 $3,390

Source: IRS Revenue Procedure 2010-40

The American Association for Long-Term Care Insurance (http://www.aaltci.org/) is the national association serving insurance and financial professionals who provide long-term care financing solutions. A complete explanation of tax deductible rules for individuals and business owners can be found on the Association's website: http://www.aaltci.org/tax .

LTC Association Marks Long-Term Care Awareness Month

November is Long-Term Care Awareness Month, an industrywide event established in 2001 by the American Association for Long-Term Care Insurance (AALTCI).

"Each year awareness efforts tied to Awareness Month grow," explains Jesse Slome, executive director of the industry's trade group. "From a Congressional Resolution, to proclamations issued by governors and mayors across America, support for the campaign's goal continues to grow."

Slome urges insurance professionals to capitalize on the occasion by using November as an opportunity to discuss long-term care planning with clients. "It's as simple as asking people if they have a long-term care plan in place," Slome notes. The vast majority of individuals and families over age 50 have no plan in place he adds. "As the saying goes, a failure to plan is a plan for failure and while insurance isn't a solution for all, everyone needs to weigh their options."

The Association makes available free marketing tools that insurance professionals can use to promote awareness during Long-Term Care Awareness Month. They can be accessed via the organizations website: http://www.aaltci.org/aware.

Long-Term Care Insurance Sales Summit Set For Vegas

The 9th National Long-Term Care Producers Summit will take place April 3-5, 2011 at the Tropicana Hotel in Las Vegas, NV.

Organized by the American Association for Long-Term Care Insurance, the conference program focuses on four specific areas; selling long-term care insurance during difficult economic times; selling combo or annuity and life products with linked LTC benefits; selling multilife LTC and the CLASS Act.

For the first time, the nation's leading trainers - Phillip Sullivan of SellingLTC.com and Phyllis Shelton, president of LTC Consultants will be part of the Summit program.

The majority of Summit attendees are relatively new agents and brokers who want to learn from the leading trainers and successful producers. This is the largest industry conference specifically for top long-term care insurance sales and marketing professionals.

Members of the American Association for Long-Term Care Insurance can take advantage of significant savings when they register early.

The complete program and registration details for the program can be found on the Association's website. Click here for the Summit's homepage. Or for more information call AALTCI at (818) 597-3227.

Republicans Conclude CLASS Act Should Be Repealed

The Joint Economic Committee comprised of Republican Senators issued a report last week referring to the CLASS Act as “a Ponzi scheme of the first order” a quote attributed to Senator Kent Conrad (D-ND).

CLASS, which stands for Community Living Assistance Services and Supports, was included within the health care reform legislation recently signed into law. The new voluntary federal payroll deduction long-term care program will provide a cash benefit to disabled or memory-impaired adults who need help with activities of daily living.

While Congress passed the law including the CLASS provisions, certain key program details including price and benefits have been left to the Secretary of Health and Human Services. In addition, the program start date that many believe won't happen until 2013 has been left to the Secretary's discretion.

The Committee report’s conclusion: “As currently designed, CLASS will not be able to sustain itself without subsidies from taxpayers or from all workers in the form of mandatory enrollment. ”

The report continues, “In addition to being unsound, the program is unnecessary. Americans already have an array of private long-term care insurance options to choose from; many are more economical than CLASS, most offer richer benefits.”

The report ends stating that “The best remedy for the unsustainable, unaffordable CLASS program is to repeal it.”

“This is the first time we've heard the word ‘repeal’ when referring to the CLASS Act,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance (http://www.aaltci.org). “I actually wish the federal government would finalize the pricing and benefits for the CLASS plan as soon as possible because employers and consumers are confused by the lack of details."

The CLASS program is designed to be offered primarily through employers. Workers will then be auto-enrolled with the right to opt out. The Congressional Budget Office (CBO) estimates that only 3.5 percent of the adult population, or 10 million people, will enroll by 2019.

"Individuals and especially employers need to know as soon as possible how much CLASS will cost and whether it will provide only a $50-per-day benefit or one that is higher," Slome adds. "It shouldn't take that long to figure this all out."

NOTE: IF you would like a PDF of the Joint Economic Committee report, send me an E-mail. Request: "Joint Report CLASS" and I will be glad to send to you. Write to: jslome @ aaltci.org .

CLASS Act Information Worth Reading

We have just posted a current and comprehensive explanation of the CLASS Act with questions and answers online and it is well worth reading. The link is below.

President Obama has signed into law comprehensive healthcare reform legislation that contains a program known as the Community Living Assistance Services and Supporters Act (CLASS Act).

If you are an insurance agent, you will be getting more questions from current clients and certainly from prospects.

If you have questions that are not answered, feel free to send me an e-mail and we will look forward to addressing them.

Click on this link: or type, copy and paste this web address into your browser. http://www.aaltci.org/class/

My Thoughts On CLASS - Next Steps

If you market and sell long-term care insurance, sooner (or later) you are going to hear the following words from a prospect; "I'm going to wait and check out the new federal long-term care plan."

It was inevitable that media coverage of health care reform would shift from "will the bill pass" to "what does the new law mean for you?" That shift is already taking place and the media watch each other and compete.

As a result, it is very likely that we will see continued and growing coverage of the fact that the health care law contains a new "federal government long-term care insurance plan". And, in a world of 15-second sound bites, that's about as much attention as it will be given ... and also all consumers need to hear to once again put any thoughts of planning on the back burner (the way baxck burner).

I will be writing more about CLASS and shortly will be creatintg material for members of the American Association for Long-Term Care Insurance to use to 1) educate themselves and 2) educate their clients and prospects. Undoubtedly, insurers will be doing likewise and we'll watch for such items and gladly share.

First, it is too early to predict how the CLASS Act will really impact either the individual or the employer-sponsored long-term care insurance markets. The three most important elements are undefined by Congress; (premium) cost to participants, benefit levels and requirements imposed on employers. These may not be available until well into 2011 or 2012 and then it will take time for implementation.

On the positive side, the CLASS Act should create enormous awareness among individuals of the real risk they face and the need to plan. If the plan is priced properly to take into consideration that it is guaranteed issue, then individual (traditional) policies will be able to compete based strictly on more benefits for less cost.

If, however, policies are insufficiently priced (too low to ultimately cover the potential claims risk) it will be more difficult to create differentiation between CLASS LTC insurance and private LTC insurance. Certainly those in positions of responsibility within the industry will work hard to achieve this (but it will not be an easy task).

Because there is a five year plan participation requirement, whatever benefits CLASS ultimately offers will really only have value for those who are currently age 55 or younger. As a result, a significant segment of Americans (those currently between 55 and 65) will fall through the donut hole and fail to have long-term care protection.

Jesse Slome
Executive Director
American Association for Long-Term Care Insurance

A Webinar On The CLASS Act

Many followers of my blog, also are members of the American Association for Long-Term Care Insurance and have attended our Producer Summits. If you have, you know that Claude Thau and Dawn Helwig are two of the brightest minds in this industry. They are both dear friends and of enormous help to what we do. Allen too!

So I am pleased to share information about a webinar these folks are doing that will deal with the CLASS Act. Here is more information.

The CLASS Act has been included in every major health care reform proposal in recent months, including President Obama's proposal to the Health Care Summit. If you would like to learn more about this long-term care insurance (LTCi) industry-changing proposal, please join Claude Thau of Thau, Inc. and Allen Schmitz and Dawn Helwig of Milliman, Inc. for a WebEx presentation on Thursday, March 11th, at 2:00 Central time.

It will cover the basics of the proposals, as well as several analyses of the program. In addition, we will discuss the ramifications of this bill for the private long-term care industry. Will it create a market for supplemental coverage? Will it increase private LTCi sales or result in further sales decline? Who will the program appeal to and what kind of anti-selection will result?"

They are charging a fee of $25 to participate.

To register for the Webinar, email your name and email address to cthau@targetins.com.

Claude will send you a "CLASS Act" invoice from PayPal that will allow you to use PayPal or a credit card to pay the $25 fee. After your $25 fee payment is received, Claude will send you the link for the web presentation and the long-distance phone number for the audio portion.

Claude's phone number and contact information can be found immediately below if you have any questions.

Claude Thau
Phone direct: 913-403-5824
Phone main: 913-384-6300, x2241
WATS line: 800-999-3026, x2241
E-mail: mailto:cthau@targetins.com

2010 Long-Term Care Sales Achievement Awards Announced

"Rookie of Year" Category Added To Recognize Industry's Newer Producers

Insurance and financial professionals who market long-term care insurance protection are invited to enter the Eighth Long-Term Care Sales Achievement Awards. The annual program, conducted by the American Association for Long-Term Care Insurance, recognizes producers based on sales made during 2009.

"Awards are given for sales of individual long-term care insurance policies as well as multi-life long-term care," explains Jesse Slome, the organization's executive director. A new category has been added to recognize producers who began selling long-term care insurance in 2009.

Award recipients are ranked on a national as well as a state-by-state basis with their names published in the Association's annual LTCi Sourcebook. "This is an excellent way for agents and brokers, even those who have just started selling, to show prospects they have been recognized as a leading producer in the industry," Slome notes. The minimal placed premium for 2009 is $2,500. "All those who enter and qualify are recognized," he adds.

Information and the entry application can be accessed online via the Association's website: http://www.aaltci.org/awards. Established in 1998, the American Association for Long-Term Care Insurance is the national association serving insurance and financial professionals who provide long-term care financing solutions.

Audio Recordings From Long-Term Care Insurance Producers Summit

Audio recordings from the recent LTCi Producers Summit are now available. The link to see the listing of all 36 sessions can be found below. Audios start at $15 each. Audios with synchronized Power Point presentations are $22 each. A discount code for AALTCI members will save you 20%.

To support the Association's efforts, the recording company provided us with a few DVDs containing all the sessions including synchronized Power Points. You can view these presentations on your computer while listening to the presentations (each is between 60 and 90 minutes long).

We are making A DVD-ROM WITH ALL 36 SUMMIT PROGRAMS available for $229 (while supplies last). Mail requests with checks only (details below). If you order online, the cost is $339. For use on computers.

To see all available 2009 LTCi Summit audios and order: click on this link: http://www.fleetwoodonsite.com/aaltci

AALTCI members can save 20% on their orders: Enter the Code "QRR7UU" during checkout on the payment page.

To order the complete DVD of all 36 sessions for $229 (Save $110 versus online cost of $339) send a check payable to AALTCI.
Mail to AALTCI - DVD, 3835 E. Thousand Oaks Blvd., Ste 336, Westlake Village, CA 91362

Here are the top-rated Summit sessions based on Evaluation Forms submitted by Summit attendees.

LTC 828 Public Policy Impacting LTC - The Latest From Washington DC - The CLASS ACT (Attendees' Evaluation Score 5.0)

LTC 834 The Instincts Of Success - Frank Maselli, Keynote speaker (Score 5.0)

LTC 836 $100,000 Of Marketing For FREE - How To Be The "Go To" LTC Expert In 2010 - Jesse Slome, AALTCI (Score 5.0)

LTC 830 How To Sell Partnership Long-Term Care Insurance - Panel (Score 4.78)

LTC 817 Yes You Can ! . Create A No-Cost Internet Presence For Google - Jesse Slome, AALTCI (Score 4.70)

LTC 831 Keynote: Referrals The Professional Way - by Frank Maselli (Score 4.70)

LTC 807 The Impending Collapse Of The Roadblocks To LTC Insurance - Steve Moses - Center For LTC Reform (Score 4.29)

To see all available 2009 LTCi Summit audios and order: click on this link: http://www.fleetwoodonsite.com/aaltci

Wishing you a great start to 2010.

Jesse Slome
American Association for Long-Term Care Insurance

Calorie Intake Linked To Longevity And Cancer Development

Cutting consumption of glucose, the most common dietary sugar, can extend the life of healthy human cells and speed the death of precancerous cells, reducing cancer's spread and growth rate.

According to findings reported by researchers from the University of Alabama at Birmingham, reducing calorie-intake can benefit longevity and help prevent diseases like cancer that have been linked to aging.

The researchers conducted tests by growing both healthy human-lung cells and precancerous human-lung cells in laboratory flasks. The flasks were provided either normal levels of glucose or significantly reduced amounts of the sugar compound, and the cells then were allowed to grow for a period of weeks. Restricted glucose levels led the healthy cells to grow longer than is typical and caused the precancerous cells to die off in large numbers.

Every year some 1.4 million Americans are diagnosed with cancer. It ranks as one of the leading factors for the need for costly long-term care according to the American Association for Long-Term Care Insurance among aging seniors.

Two key genes were affected in the cellular response to decreased glucose consumption. The first gene, telomerase, encodes an important enzyme that allows cells to divide indefinitely. The second gene, p16, encodes a well known anti-cancer protein.

Healthy cells saw their telomerase rise and p16 decrease, which would explain the boost in healthy cell growth, the researchers explained. The research into the links between calorie intake, aging and the onset of diseases related to aging is thought to be a first of its kind given that it used the unique approach of testing human cells versus laboratory animals.

The study has been published in the online edition of The Journal of the Federation of American Societies for Experimental Biology. The research was funded by a grant from the National Institutes of Health.

People Who Look Young For Their Age Tend To Live Longer

People who look young for their age enjoy a longer life than those who look older than their years.

According to researchers, doctors frequently use perceived age as a general indication of a patient's health. They note however, that there is little research upon which to base validity of the belief.

Researchers at the University of Southern Denmark, examined whether perceived age is linked with survival. They investigated important age related traits, such as physical and mental (cognitive) functioning and a molecular biomarker of aging (leukocyte telomere length).

Telomere length indicates the ability of the body's cells to reproduce. Shorter length is associated with a host of diseases related to aging, lifestyle factors and death.

A total of 1,826 Danish twins aged 70 years and over underwent physical and cognitive tests in the spring of 2001. Their faces were also photographed. Assessors rated the perceived age of the twins from their facial photographs. The assessors did not know the age range of the twins. In addition, each twin of a pair had their age assessed on different days.

Following the assessments, death records were used to track the survival of the twins over a seven year period. Perceived age was significantly associated with longer life survival. This was true even after adjusting for chronological age, sex, and the environment in which each pair of twins grew up. Perceived age, adjusted for chronological age and sex, also correlated with physical and cognitive functioning as well as leukocyte telomere length.

Also, the bigger the difference in perceived age within a twin pair, the more likely it was that the older looking twin died first. The age, sex and professional background of the assessors had no relevance to any of the results.

The researchers concluded that perceived age based on facial photographs is a strong biomarker of ageing. It predicts survival among people aged 70 years and over and correlates with important functional and molecular age related characteristics.

Report gathered by the American Association for Long-Term Care Insurance.

Study Examines Long Term Home Health Care Utilization

December 1, 2009 - Some 7.5 million Americans currently receive long-term care at home because of an acute illness, long-term health condition, a permanent disability, or terminal illness according to a new report.

That compares to only 1.5 million in nursing homes and 1.1 million who reside in assisted-living communities according to the American Association for Long-Term Care Insurance which teamed up with Homewatch CareGivers to conduct a study examining trends in long-term health care and the utilization of associated support services.

"Most people incorrectly associate long-term health care with skilled nursing care in a facility when the vast majority of care takes place at home," explains Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance. “It is clear that the people in today’s society prefer treatment for chronic conditions and issues related to aging in their own home rather than in a residential facility.”

One aspect of the study sought to compare individuals with long-term care insurance policies with those without insurance coverage. The findings indicated that individuals with long-term care insurance receive significantly more home care, and thus can stay in their homes longer. The study found that 70.6% of those covered by long-term care insurance received an average of between five and seven days of care each week, while only 35.1% of those without insurance received similar care as often.

"When possible, home is almost always the preferred setting for people who require care," says Leann Reynolds, president of Homewatch CareGivers. “This has been a clear and growing trend for more than a decade, as more and better home services have become available. The vast majority of people want to receive support care in their homes in order to maintain independence and quality of life for as long as possible.”

Possessing insurance to pay part or all of the cost of home care services enabled individuals to receive care at home for longer periods of time. The study found that 41.2% of those with insurance received care for longer than one year; compared to 29.7% of those without coverage.

"The study confirms what we've long suspected, that a basic long-term care insurance plan costing less than $1,000 a year may provide sufficient coverage for those who want care at home and still have the ability to transition to more costly skilled facilities should the need arise," adds Slome.

According to the Urban Institute, a nonprofit founded in 1968 that conducts research on social and economic issues to foster sound public policy, 21.3 percent of the frail older population receives paid home care services and it projects this will increase to 22.3 percent by 2030 and 25.5% by 2040.

"It is vitally important for individuals to recognize the increased likelihood of needing care at some point in their lives, and to plan for that inevitability," concludes Reynolds. “Having sufficient financial resources or the protection of long-term care insurance are the prime factors for all of us who want to stay in our homes and receive care for as long as possible.”

- - -

Founded in 1980, Homewatch CareGivers http://www.homewatchcaregivers.com/ is the largest, most experienced international provider of full-service home care for people of all ages, including seniors, children, veterans, the chronically ill, and those recovering from medical procedures. In-home care services are personalized for each client and customized care plans are administered through an international network of 111 owners with 181 territories. Founded in 1998, the American Association for Long-Term Care Insurance http://www.aaltci.org is the national trade organization established to educate Americans about the importance of long-term care planning. For more information visit the organization's Consumer Information Center or to access a free guide to reducing the cost of long-term care insurance click on this link: www.aaltci.org/free-guide/ .

New Guides Address Increased Tax Deductions For Long-Term Care Insurance

Two new guides explain 2010 tax deductibility rules and limits for individuals and business owners purchasing long-term care insurance.

The "Guide To Tax Deductible Long-Term Care Insurance" was published by the American Association for Long-Term Care Insurance, the industry trade group.

"Tax deductions and credits are going to be increasingly important and a most significant selling point insurance and financial professionals can use to encourage long-term care planning," states Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance. To encourage individuals and small business owners to purchase long-term care insurance the federal government and many states have started offering tax deductions and tax incentives.

The 2010 version of the guide explains tax rules for individuals as well as those who are self-employed or own small businesses. The applicable rules vary including limits for allowable tax deductions.

Tax-deductible limits for individuals can be as much as $4,110 per-individual starting in 2010 based on age. "Small business owners can take advantage of special tax rules that may make the full cost of long-term care insurance tax deductible," Slome adds. "The business can even pay for spouses and designate coverage for selected employees on a tax-advantaged basis."

A second booklet, "Accountant's Guide To Long-Term Care Insurance" provides comprehensive information including Internal Revenue Codes pertaining to various tax deductibility rules and the new 2010 aged-based limits for long-term care insurance tax deductions.

Copies of the 2010 editions of both brochures can be ordered by calling the Association at (818) 597-3227 or by visiting the organization's website: http://www.aaltci.org/tools.

Long-Term Care Awareness Month Television Appearance

Ron Goldner, Financial Planner with Wealth Strategies Group, Inc. in Memphis, Tennessee capitalized on Long-Term Care Awareness Month by arranging three local television appearances. You can view his appearance on the local Fox-station's newscast.

At the end of the interview, Ron offers copies of the Association's Guide For Women and has already fielded a number of calls. Offering a brochure is a great way to get the station to include your phone number. Way to go Ron.

If you send me examples of media placements you have secured, we'll gladly share them with others.



Posted by Jesse Slome
American Association for Long-Term Care Insurance
http://www.aaltci.org

Free Articles For Your Long-Term Care Blog

If you are reading this blog, chances are you have your own blog. or, at least, you have had more than one fleeting thought about starting one.

For those who have a blog, here is some news I believe will be of value.

For those who do not have a blog - I strongly urge you to start one. It will be a meaningful way to market yourself and your business. More on that at another time (and if you are a member, read the issue of Sales Strategies).

On a monthly basis, I will write and make available an informational blog posting that you can (and should) add to your own blog. Free content of a valuable nature. You will simply copy, personalize and post on your blog. Keep reading.

I just posted the first one. It's available as part of the American Association for Long-Term Care Insurance's Online Learning & Marketing Center. Click here and sign-in. Then go into the Publicity section. It's the most recent post.

First, the simplest way to copy and use the text is to highlight the text and copy it into a new Word document. The Download feature isn't great and I hope to change that in the coming year. So copy and paste.

Second, if you include a live link to the American Association for Long-Term Care Insurance's website as part of your posts, I will reciprocate with a link to your website. Links are important in Google's eyes - so we can help each other. The link must go to: http://www.aaltci.org/. After you post, send me an E-mail with the link to your blog and what website you want us to include in our links. E-mail me at: jslome @ aaltci.org.

Third (and this is important). Be sure that you personalize your blog. If you have a separate blog from your website, be sure to include a link to your website. Again, this is good for your Google ranking.

I dedicate an hour a day to what's called Social Marketing via the net. I can tell you that the world is going online (not just young people) and Association members will get the tools to make that a bit simpler.

Health Care Bill Contains Long-Term Care Insurance Option

The passage of H.R. 3962, the Affordable Health Care for America Act, contains provisions to establish a national voluntary long-term care insurance program.

Section 2581 of the nearly 2,000-page bill provides for the establishment of the Community Living Assistance Services and Supports (CLASS) program the purpose of which is to "establish a national voluntary insurance program for purchasing community living assistance services."

The measure aims to provide individuals with functional limitations with tools that will allow them to maintain their personal and financial independence and live in the community. The plan intends to offer insurance to those who are actively employed or those who are members of the uniformed services and is on active duty.

According to data compiled by the American Association for Long-Term Care Insurance, the cost of the government insurance program is expected to be close to $1,500-per-year for an individual; close to $3,000 for a couple with both spouses participating. The organization notes that individuals who are able to health qualify for private insurance will likely still be able to purchase significantly better protection for less money from private insurers. For those unable to health qualify for long-term care insurance, the CLASS plan will be a viable, though expensive option experts note.

The proposed government long-term care insurance plan is designed to commence some time before 2012, though many details including the final cost and benefits will still need to be worked out. Individuals who choose to pay the government-imposed insurance premiums will need to participate by paying insurance premiums for a minimum of five years -- or until 2017 -- in order to first be eligible for benefits.

The Congressional language requires that individuals "shall be automatically enrolled in the CLASS program by an employer" though an opt-out provision will be permitted for those who choose not to have the long-term care insurance premiums deducted from their pay check.

Once the Senate passes its health care reform bill, the House and Senate bills will have to be reconciled into one document and voted on again.

Increased Tax Deduction Limits For Long-Term Care Insurance

The Internal Revenue Service (IRS) has announced increased deductibility levels for long-term care insurance policies purchased in 2010. "For the first time, the maximum deductible limit for an individual exceeds $4,000," explains Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance , the national trade organization.

"The federal government and an increasing number of states are sending a clear signal that individuals need to plan for long-term care and tax deductibility and tax credits certainly make long-term care insurance more attractive to millions," Slome adds. "It is a positive sign to see limits for long-term care insurance deductibility increase especially when pension contribution limits for 2010 were not increased."

The end of the year provides a double tax-saving incentive for consumers. There is still time to take advantage of tax deductions in 2009 and also benefit from the increased deductible limits next year.

The 2010 deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:
Age 40 or less: $ 330
More than 40 but not more than 50: $ 620
More than 50 but not more than 60: $1,230
More than 60 but not more than 70: $3,290
More than 70: $4,110

A complete explanation of tax deductible rules for individuals and business owners can be found on the Association's website: Click here for 2010 tax deductible limits.