It’s a Wonderful Life …

its-a-wonderful-life

#itsawonderfullife

It is a wonderful life when you know you won’t burden your family from the consequences of Long Term Care. Affordable LTC insurance will safeguard your future retirement income & savings and ease the burdens that are placed on your family. This holiday season give peace-of-mind to yourself and your loved ones before you retire.

The holidays are a great time to start a plan … before you retire … to provide peace-of-mind and retirement security from the high costs and burdens of extended care. You know health insurance and Medicare won’t pay for a majority of these costs. The financial costs and burdens of aging will impact not only your 401k, IRA 403B and retirement income but will also place a big burden on those you love. It just makes sense to add LTC insurance to your plan. Very easy to do and very affordable. But don’t wait for an angel in training to come down to convince you … act before you retire and enjoy good health discounts. Plus, premiums are based on the AGE you are when you get a plan in plan. Lock in your savings and lock in peace-of-mind.

Act now: www.mccannltc.net

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FARMERS NEED TO PROTECT LAND & LEGACY FROM LTC

Rural Ohio RoadThe financial costs and burdens of aging impact all Americans. However, the impact on rural America (farmers and ranchers) can be devastating since much of a farmer’s estate is tied up in the value of land. Many people wish to leave their land and other personal property, cash and investments to their heirs. The desire is to keep it in the family. To protect the heirs’ inheritance from potentially devastating costs of Long Term Health Care an affordable plan must be in place prior to retirement or change in health.

The University of Nebraska Center of Rural Affairs says Long Term Care for America’s aging population is an important consideration in estate and business transition planning. Many have become increasingly aware how easily the cost of Long Term Care can wipe out a lifetime of savings or hamper the transfer of a family farm, ranch or business to future generations.

What is the risk of needing some type of extended health care? High. The U.S. Department of Health and Human Services says if you reach the age of 65 you have a 70% chance of needing some type of Long Term Care service before you die. With advances in medical science we live longer, we survive health events and accidents. This all leads to more aging issues in addition to many health events which cause the need for help with activities of daily living or supervision due to memory problems.

Part of any responsible retirement and legacy plan is to provide for the financial costs and burdens that Long Term Care places on loved ones. Long term Care Insurance is an affordable way to ease the burden and help preserve the farm or range for generations to come.

“I hear from farm families from all over the country. This is a key concern. The costs of care can create liquidation of assets. Too many farmers have seen this happen to fellow farmers and they want to make sure the land stays in the family. For many, Long Term Care insurance will protect their farm and other assets and plans are very affordable if they plan early when their health is better,” said Matt McCann a nationally recognized expert in Long Term Care Planning.

One of the biggest threats to a family legacy is catastrophic end-of-life costs. Cost of care can vary depending where in the country a person lives. Most Long Term Care is not in nursing homes although nursing homes are the most expensive. LTC policies will pay for care in all settings including one’s own home.

For example, in Iowa an average skilled nursing home will run about $6100 a month according to the annual Genworth Financial survey. Monthly care at home averages about $4300 a month with assisted living facilities running around $3600. However, costs in Ohio will be more. A Long Term Care specialist can discuss the cost of care in your area.

The issue of burden on family is another consideration. Without Long Term Care insurance, a spouse or daughter may become the primary caregiver, at least at first. Spouses who are the default primary caregiver for a partner often see a decline in their own health. Daughters or daughters-in-law have their own families and responsibilities. In some cases, they may not even live close by.

Since health insurance and Medicare (including Medicare supplements) will pay only for a very small amount of skilled care and only if you are improving, much of the cost of Long Term Care is placed on you.

There are three types of LTC plans available. Traditional tax-qualified plans provide a monthly or daily benefit once you qualify for benefits. Generally, you start with a pool of money and both the monthly benefit and benefit pool are subject to inflation increases in those benefits. In many states you have additional “partnership” benefits which provide dollar-for-dollar asset protection in the event you spend through your LTC policy money.

Hybrid plans are also available. These are usually single premium life insurance policies or annuities with a rider for Long Term Care. Be careful, some of them are just an advance of death benefit or will only provide benefits for critical illness not traditional Long Term Care. A LTC specialist can discuss the differences.

Short-Term plans are also available. These provide a year of extended care. While not a complete solution, for some people with health issues this might be an appropriate option.

“One of the features that makes these products extremely attractive is the ability to select a 0-day Elimination Period (EP),” said Jesse Slome, executive director for the American Association for Long Term Care Insurance (AALTCI). “Most traditional LTC insurance policies require that a doctor certify a need for care lasting longer than 90 days and have a 90-day wait period for benefits. With a 0-day EP period the policyholder accesses policy benefits early on when they need care.”

The assets you have accumulated throughout your working life including your land you own your farm will go to one of two purposes, your lifestyle or your legacy. It’s up to you to decide how much is dedicated to each purpose. You are in control. The one thing that will get in the way is extended healthcare. The time to safeguard your property and assets should happen well ahead of your retirement. The peace-of-mind it will create is priceless.

(from LTC Planning News, see article: http://longtermcareplanningnews.com/articles/farmers-need-to-protect-land-legacy-from-long-term-care

Discover how easy it is to plan: www.mccannltc.net

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Tax Advantages Available for Long Term Care Insurance

ltc-tax-treatmentYes, it is not too early to be talking about taxes. Year-end actions can save you money and benefit you in the long run. One of the things some people forget about is Long Term Care Insurance. Yes, many people are looking into LTC insurance as a way to safeguard their 401k, IRA and other savings from the high costs and burdens of extended care. But did you know many people can have a tax advantage for doing so?

Tax-qualified LTC insurance premiums are considered medical expenses. For an individual who itemizes income tax deductions, medical expenses are deductible to the extent that they exceed 10% of the individual’s Adjusted Gross Income (AGI). (For individuals age 65 or older, the threshold remains at 7.5% for tax years 2013-2016). The amount of the LTC insurance premium treated as a medical expense is limited to the eligible LTC insurance premiums, as defined by Internal Revenue Code1 section 213(d)(10), based on the age of the insured individual. The portion of the LTC insurance premium that exceeds the eligible LTC insurance premiums is not includable as a medical expense.

The IRS publishes a chart which lists the amount you may deduct for each tax year.

A self-employed individual can deduct 100% of his/her out-of-pocket LTC insurance premiums, up to the age-based Eligible Premium amounts listed in Table 1. [IRC 162(l)(2)(c)] The portion of LTC insurance premiums that exceeds the Eligible Premium amount is not deductible as a medical expense. The deductible amount includes eligible premiums paid for spouses and dependents [IRC 162(l)]. It is not necessary to meet a 10% AGI threshold in order to take a deduction.

However, a self-employed individual may not deduct LTC insurance premiums during any calendar month in which he/she or his/her spouse is eligible to participate in a subsidized LTC insurance plan. A subsidized LTC insurance plan entails an employer paying part or all of the premiums for LTC insurance.

Partners of a partnership, members of an LLC that is taxed as a partnership, and shareholders/employees of Subchapter S Corporations who own more than 2% of the Corporation2 are taxed as self-employed individuals. The partnership, LLC, or Subchapter S Corporation pays the premium.

The partner, member, or shareholder/employee must include the LTC insurance premium paid on his/her benefit in his/her Adjusted Gross Income, but may deduct up to 100% of the age-based Eligible Premium amount. It is not necessary to meet a 10% AGI threshold in order to take this deduction.

When a C Corporation purchases a tax-qualified LTC insurance policy on behalf of any of its employees, and their spouses or dependents, the corporation is entitled to take a 100% deduction as a business expense on the total premiums paid.4 The deduction is not limited to the age-based Eligible Premium amounts. The purchase of a tax-qualified LTC insurance policy is generally not subject to any IRC nondiscrimination rules. Therefore, an employer can be selective in the classification of employees it elects to cover (e.g., a select group of officers). However, due to the enactment of the Patient Protection and Affordable Care Act (PPACA), certain policies may be subject to the nondiscrimination rules under the IRC 105(h).

You should consult with your tax and/or benefits advisors to ensure compliance with any applicable nondiscrimination rules.

The entire LTC insurance premium amount paid by the corporation is excluded from the employee’s Adjusted Gross Income, even if the premium exceeds the Eligible Premium amount. This exclusion applies to shareholders/employees (as long as they are treated as employees) in a Subchapter C Corporation and to shareholders/employees who own 2% or less of a Subchapter S Corporation.

Health Savings Account (HSA)

Tax-qualified LTC insurance premiums can be reimbursed through an HSA, tax-free, up to the Eligible Premium amounts even if the HSA is offered through an employer provided cafeteria plan.

Health Reimbursement Account (HRA)

Reimbursements for insurance covering medical care expenses, as defined in IRC Sec. 213(d), which includes qualified long-term care services and qualified LTC insurance premiums, are allowable under an HRA. Although employers pay for HRAs, an HRA cannot be provided by salary reduction or IRC Sec. 125 plans. As such, the LTC insurance premiums cannot be paid on a pretax basis through an HRA.

Cafeteria Plan

Tax-qualified LTC insurance policies cannot be purchased with pre-tax dollars under an employer-provided cafeteria plan. However, LTC insurance premiums may be paid through an HSA that is offered under an employer-provided cafeteria plan.

Flexible Spending Account (FSA)

Tax-qualified LTC insurance premiums cannot be reimbursed through an FSA.

This is the 2017 IRS tax deductible amounts:

https://mattmc0916.wordpress.com/2016/11/02/irs-announces-2017-tax-deduction-schedule-for-ltc-insurance/

Hint: If you are eligible to take a tax deduction for this year, pay the full premium with the application in 2016 even if the policy would go into effect in 2017.

You should safeguard your future retirement income and assets from the high cost of extended care … tax deductible or not. But if Uncle Sam helps … take advantage. Many states offer state incentives as well.

The financial costs and burdens of aging will impact your loved ones and impact your savings. Planning before retirement is smart and perhaps tax advantaged as well. If you are Generation X or a Boomer this should be on your radar screen.

Discover how affordable LTC insurance can be: http://www.mccannltc.net

 

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NHL Star Bryan Bickell Diagnosed with MS

bryan-bickell-pic

A NHL star and member of the 2015 Stanley Cup Champions Chicago Blackhawks has been diagnosed with Multiple Sclerosis. The 30-year-old Bryan Bickell, who now plays for the NHL Carolina Hurricanes, had health issues going back to his time with the Blackhawks. The Hurricanes announced his MS diagnosis on November 11, 2016 shocking players and fans.

See Chicago Tribune story click here

See LTC Planning News article click here

Multiple sclerosis is a rare disease that affects the central nervous system, with symptoms varying from case to case but eventually leading to nerve damage and physical impairment. There is no known cure. Many people with MS end up requiring help with normal activities of daily living (ADL’s) and requiring them to need extended care with those ADL’s.

MS is a “spectrum disease” that can present mild to disabling symptoms in different patients. Life expectancy is near normal, however the impact on independence generally is the biggest concern.

People with multiple sclerosis (MS) tend to have their first symptoms between the ages of 20 and 40. Usually the symptoms get better, but then come back. Some may come and go, while others linger.

Mobility issues end up being the main reason people with MS need Long Term Care. MS can cause muscle weakness or spasms, which make it more difficult to walk. Balance problems, numb feet, and fatigue can also make walking more difficult. Often people with MS may suffer from falls especially as they get older and the MS progresses.

The cost of the custodial care for a person with MS can be high. As it progresses a person may need homecare in addition to any care a family member may provide. As a person ages, it becomes very difficult for family members to be caregivers. Generally, a person will move into a facility like assisted living or, in extreme situations, a nursing home. Health insurance and later, once a person is 65, Medicare, will not pay for most these costs.

The financial costs and burdens placed on family can negatively impact a family. The consequences of a Long Term Care event, caused by MS, other diseases, accidents or just aging impact a family’s assets and income in addition to create emotional and physical burdens on those you love.

Since these health events can happen at any age having a plan which includes Long Term Care Insurance is an affordable way to safeguard your 401k, IRA and other savings while easing the burden on family.

Most people are not professional athletes who have substantial savings and investments. However, even those who do could spend hundreds of thousands of dollars unless a plan is in place.

Learn now how you have plan in advance for the costs of extended Long Term Care with affordable LTC insurance: www.quoteonltc.com or www.mccannltc.net

Posted in aging, boomers, caregivers, long term care, LTC, partnership, Uncategorized | Tagged , , , , , , , , | Leave a comment

IRS Announces 2017 Tax Deduction Schedule for LTC Insurance

Tax cut

Long Term Care Insurance is a product many Americans have in place to safeguard current or future retirement income and assets from the high costs of extended Long Term Health Care. These policies are also tax deductible.

The policies have attractive tax treatment under IRC 7702(b). Premiums can be tax deductible if you have enough medical related deductions, you are self-employed or own a LLC, S-Corporation or C-Corporation. C-Corporations can deduct 100% of the premium. Otherwise the IRS publishes a chart each year which indicates the amount deductible based on age.

The IRS has increased these amounts for 2017.

“The tax-deductibility of premiums when you purchase traditional Long Term Care insurance provides a real incentive for consumers, especially after retirement,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).

“The special tax advantages are not available when individuals purchase linked-benefit products such as life insurance or annuity policies that can provide a future Long Term Care benefit,” Slome said.

These “hybrid” plans generally offer single premiums with some type of death benefit. The benefits are generally tax-free but premiums are generally not deductible. There are some exceptions and you should consult a Long Term Care Insurance specialist for details on those exceptions.

With increased longevity and advances in medical science more people will require help with everyday activities. These “ADL’s – Activities of Daily Living” are things we take for granted like bathing, eating and dressing. People require extended care due to accidents, illnesses or the impact of aging. Health insurance or Medicare will only pay for a small portion of skilled care and they pay nothing toward the most common “custodial” care (help with ADL’s or supervision due to memory issues like Alzheimer’s or dementia). LTC insurance will pay for these costs.

“Many of my clients are able to deduct their premiums. Plus some of my clients own businesses, the self-employed, have additional tax benefits be it a sole proprietor, LLTC, S-Corp, or C-Corp,” said Matt McCann a nationally known expert on LTC planning.

“Only traditional Long Term Care insurance policies have the benefit of potentially being tax-deductible to an individual. After retirement when income typically declines, tax deductions can take on a significant added value to take advantage of,” said Slome.

Proceeds from LTC insurance are always tax-free.

Starting in 2017, all individuals may deduct qualified medical expenses that exceed 10 percent of adjusted gross income (AGI) for the year.   For 2016, individuals age 65 and older the threshold remains at 7.5 percent of AGI.

Premiums paid for traditional LTC insurance are included in the term ‘medical care’ when itemizing on a personal return. You should seek tax advise if you are self-employed or own a corporation as deductions are more favorable.

Click here to see the tax-chart and more details:

http://longtermcareplanningnews.com/articles/irs-announces-2017-tax-deduction-schedule-for-ltc-insurance

The time to learn how to safeguard your future retirement income and assets is before you retire when you enjoy better health and can take advantage of much lower premiums. See how affordable Long Term Care Insurance can address the financial costs and burdens of aging. Learn more and get free quotes: www.mccannltc.net – www.quoteonltc.com

 

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November: LTC Awareness Month

ltc-awareness-2016-aaltciNovember is National Long Term Care Awareness Month. As the holidays approach, it is time to learn your options to safeguard future retirement income and savings, ease the burden on family and maintain your independence and control. The financial costs and burdens of aging will impact you and your loved ones. Affordable Long Term Care insurance will address these concerns and protect your 401k IRA 403b.

November has been declared Long-Term Care Awareness Month because even the U.S. Congress recognizes the importance of making people aware of the risks and costs associated with Long Term Care. As a professional committed to helping people protect themselves against the risks of extended Long Term Health Care, I encourage you to take this topic seriously. It can impact you and loved ones.

Some things I believe you need to know about LTC:

You’re probably not covered. Many people mistakenly believe they are covered for Long Term Care, but this assistance is not typically covered by your health or long-term disability insurance. This means your hard-earned savings are impacted. This will impact your future retirement income and the lifestyle you and your family wish to have … not to mention any estate you wish to leave your children and grandchildren.

Government programs aren’t designed to pay for all your LTC needs. Medicare only pays for skilled care, while Medicaid only covers the very poor – those whose assets are at or below state-required levels. These programs often don’t cover care provided in your own home.

This is important to know: Long Term Care doesn’t mean nursing home care.   In fact, the majority of people who need extended care remain in their own home or in their community.   Most LTC insurance policies will cover people in all care settings including the home. That’s a significant benefit.

Your age and health make a big difference in what protection costs.

Many people put off looking into LTC insurance protection. Waiting to plan can be a mistake because the cost of insurance is based on your age, health and the amount of benefits to wish to have. The premiums re intended to remain level but if you wait your health usually will change plus premiums will increase every year you wait.

Your health is also a most important factor. Waiting to plan can be a costly mistake because a change in your health can make you ineligible for this protection (no matter how much you are willing to pay).

The fact is  affordable Long Term Care Insurance will safeguard your income and savings and ease the burdens on family. The financial costs and burdens of aging have a real impact on your life, your family and your assets. Learning about your options is easy but always speak with a real specialist in Long Term Care. Few agents or financial planners understand the plans, understand the partnership program available in most states (which offer additional dollar-for-dollar asset protection), or understand underwriting which differs which each company.

With over 18 years of experience, over 3300 living clients and lots of claim experience I can answer your questions and show you your options. Plus, I am endorsed by the American Association for Long Term Care Insurance.

Act now to learn before you retire www.mccannltc.net

 

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Long Term Care Insurance Easy & Affordable

The consequences of an extended Long Term Health Care event will have a big impact on a family’s future retirement income, and assets as well as cause burdens on family members. That is the message Matt McCann delivered in a recent speech in Pittsburgh.

McCann, a nationally known expert on Long Term Care Planning and President of McCann Insurance Services, said more people than ever are looking at ways to safeguard their future retirement income from the financial costs and burdens of Long Term Health Care.

Matt at Hyatt DC (2)“Some people feel frustrated on how to find the right plan and design it correctly but planning is very easy when you know where to go to get the help,” McCann told the group.

He said the right expert can guide you with recommendations based on your individual situation. These LTC costs can have a dramatic impact on a person’s 401(k), 403(b), IRA and other assets. Long Term Care Insurance is an affordable way to protect a family’s assets and ease the burden on loved ones.

“Unfortunately not many insurance agents or financial advisors understand how these plans work or how they are underwritten. They just do not have the experience,” McCann said.

His firm assists people throughout the country find the right plan. Consumers go to his website, www.mccannltc.net, learn options and request recommendations and quotes from all the top companies in the LTC industry. Speaking on the phone as the consumer views McCann’s computer screen from the comfort of their home or office, they can learn about the products and designs, the many tax incentives available and how the federal/state partnership programs can address the financial costs and burdens of aging.

“My philosophy is to make a catastrophic situation manageable so you can address the physical, emotional and financial burdens that LTC places on the American family. Most people I speak with are in their 40’s and 50’s and want to add affordable LTC insurance as part of their retirement plan,” McCann noted.

He says a good plan will also allow adult children to be loving and supporting and not start fighting about who is doing what and how much money is being spent.

He noted that most plans include provide discounts and case management which make it easier on family members.

“Affordable Long Term Care Insurance will not only ease the burdens that an extended LTC event will have on your spouse and adult children and their families but protect your lifestyle and that of your spouse by protecting your future retirement income from the high cost of extended care,” McCann said.

The financial costs and burdens of aging need to be consider as part of an overall retirement plan. He notes many people are surprised how easy and affordable LTC insurance can be.

You can Visit Matt McCann’s website for information on LTC Planning including quotes and personal consultations: http://mccannltc.net/.

McCann also uses a number of other websites as outstanding resources:

LTC Planning News is an outstanding resource that has articles, links, and videos on LTC Planning: http://longtermcareplanningnews.com/.

The US Department of Health & Human Services LTC site: http://longtermcare.gov/.

The American Association for Long Term Care Insurance (AALTCI): http://www.aaltci.org/.

“Don’t just let things happen and place the burden of caregiving on your spouse or adult children. LTC insurance is affordable and easy,” McCann said.

You can call McCann’s office at 866-751-7957. His email is: matt@mccannltc.net

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