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Financial Planning Tips

Test Your Knowledge of Long-Term Care Insurance
(Updated: 12/03/2018)

According to the U.S. Department of Health and Human Services (2017), approximately 70 percent of the population will need long-term care after reaching age 65. Further, the national average cost for a nursing home is $7,698 per month for a private room and $20.50 per hour for a home health aide. While most health insurance doesn't cover long-term care expenses, long-term care insurance can help offset the cost when people are unable to care for themselves.

True or False?
Premiums for long-term care insurance are never deductible.


Answer: False

A portion of long-term care insurance premiums may be deductible for policies that qualify, based upon IRS rules and requirements. If the requirements are satisfied, then you may deduct a portion of the premium up to the following 2018 limits.

Age

2018 Deductible Limit

40 or younger

$420

41—50

$780

51—60

$1,560

61—70

$4,160

70+

$5,200



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