We Are The 40 Million Americans

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This week:

A big thank you to Linkedin for allowing me to be a part of this pilot program called Newsletter. Kicking off the Newsletter series, I will be discussing long term care (LTC) planning.

We Are The 40 Million Americans is dedicated to the over 40 Million unpaid caregivers in the U.S. today. That's one out of every six adults. The majority are the daughters, sons, wives, and husbands who put their lives on hold to tirelessly take care of their loved ones. For this, we thank you.

Long term care planning can be a tough topic, but it is an important one. In this Newsletter, I share my personal LTC story (see the video below) and a tax-efficient insurance strategy that may help you and your clients put a LTC plan in place.

Out of my four grandparents, all four needed caregiving assistance during their declining years:

• My mom's parents, Sam and Yetta, were holocaust survivors who both suffered strokes later in life. I never really got to know Sam who was a bigger-than-life figure in his prime. I watched Yetta (a tiny woman about 4'9" with a heart of gold) take on full-time caretaking for over a decade when Sam lost his use of the right side of his body. When Yetta's health declined, I watched my mom tirelessly provide round-the-clock care for her out of our home.
• My dad's parents, Dan and Arlyne, owned a small insurance agency in Chicago. Both had mobility issues later in life. Luckily, they had the foresight to purchase long term care insurance. Their caregivers became a part of our family. My parents were able to oversee the care that was provided instead of providing it themselves. In addition to using the insurance benefits, my grandparents made use of a valuable tax deduction when they purchased the policy.

Long Term Care Insurance Strategy for Business Owners

Here is a strategy that would make my grandparents proud, after all, they owned it!

Hidden in Plain Sight

This is an insurance strategy that even many tax experts do not know about. However, you may still need to consult your tax advisor for plan implementation. Please visit www.buddyins.com and we can assist you in having this conversation.

• The tax code allows most business owners to deduct premiums for long term care insurance (LTCi) as a reasonable business expense.
• Even after taking the income tax deduction, LTCi benefits are generally received tax-free.
• Business owners can carve out plans exclusively for themselves and their spouses based on select criteria.

The amount of the tax deduction and implementation of this strategy varies depending on the business type: C-Corporation, S-Corporation, Partnership, or Sole Proprietor.

How This Works

Long term care insurance is treated similarly to health insurance in the tax code.

It is easy to identify prospects for this valuable tax deduction; simply ask your clients interested in a LTC plan, "Do you own a business?"

If you are a licensed insurance advisor that owns your practice, it may make sense to get a plan for yourself first. This will help you get familiar with the concept before offering it to clients.

Want to Learn More?

Visit www.buddyins.com. BuddyIns is a community of client-first insurance specialists dedicated to helping financial professionals across the country get their clients customized solutions. We partner with leading general agencies around the country to provide point-of-sale client support.