Close Close
ThinkAdvisor

10 Long-Term Care Insurance Tax Facts to Know

X
Your article was successfully shared with the contacts you provided.
X
Your article was successfully shared with the contacts you provided.

Related: 10 Life Insurance Tax Facts to Know

There are more than 70 million baby boomers in the U.S., according to the U.S. Census Bureau, and by 2030, all boomers will be age 65 or older. This “gray tsunami” will, sooner or later, need assistance with daily life. And, while your clients may not want to think about getting old and needing care, presenting ways to prepare for old age is one of many responsibilities of agents and advisors.

According to the 2020 Genworth Cost of Care Survey, the monthly cost for an assisted living facility averaged $4,300 while the average cost for a private room in a nursing home was $8,800. Long-term care insurance is one way individuals can invest in their senior years now.

In the gallery above are 10 important tax and financial planning questions advisors should be aware of in regard to long-term care insurance, according to ALM’s Tax Facts Online.

  • Learn more with Tax Facts, the go-to resource that answers critical tax questions with the latest tax developments. Online subscribers get access to exclusive e-newsletters.
  • Discover more resources on finance and taxes on the NU Resource Center.
  • Follow Tax Facts on LinkedIn and join the conversation on financial planning and targeted tax topics.
  • Get 10% off any Tax Facts product just for being a ThinkAdvisor reader! Complete the free trial form or call 859-692-2205 to learn more or get started today.