Sunday, September 25, 2016

Long Term care premiums keep rising

Michelle Singletary has an important column “Tough questions about long-term care insurance” on the front page of the Washington Post business section Sunday, September 25, 2016.

Federal (and other retirees) are facing stiff increases in premiums for the same coverage, or accepting lower maximum monthly coverages, or lower lifetime payouts.  As people live longer the present value of the expected claims increases, so insurance companies continue to increase rates.

Some people are at risk of forfeiting everything they have spent on LTC premiums to date if they cannot afford the increases.

I still have a single premium policy bought from Lincoln Life in 2011.  It still sends a 1099 to me every year, but the income doesn’t count.

The New Jersey ElderLaw Center has a video on the income tax deductibility or exclusion of nursing home or home health aide expenses, and of taxation benefits paid from LTC policies, here.  

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