Question and Answer on Long Term Care Insurance

Client:

Hi LTC Tree,
 
I have put a lot of time into this.  My Dad had Alzheimer's and went into a nursing home when he was 82, he passed away within 3 years.  Mom was in independent care for about 5 years, then in assisted care for about 3 years, nursing home for 2 years before she passed away.  Dad was about 85, and Mom almost 97 when they died.
 
The annual fees were confusing, and I need to know how much of the premium would be tax deductible
(Federal).  Texas has no taxes.   Since Mom was about 87 before she needed even independent care, it seems early for me to be purchasing this.  I know we don't know what will happen from day to day, but I feel like I could wait until 72 to buy, perhaps.  The premiums go up based on age anyway??
I am extremely healthy now.  No health problems so far.  
 
So, my questions would be:
  Why buy now?
  What are the premiums for 5-year (best price)   and how are they paid?  monthly or annually
  Tax deduction?

LTC Tree:

Hi, thanks for your questions. 

You will want to check with your CPA on the tax deduct, but my clients who itemize on their taxes have said they were able to write off most all the premiums.  It is better to buy now for several reasons:
1) You have a better shot at the preferred discounts now vs. when you are older
2) Every 18 months these companies raise their prices on their products and in 5 years you will of gone through about 20% higher product cost
3) You will be five years older and there is an increased cost for every year you age
4) You will save money.  Yes, even though you will pay for it for more years you will pay much less because of the above reasons.

Sincerely,
LTC Tree