Long term care without liquidating assets
Long-term care is different from traditional medical care, which tries to treat or cure illnesses.Long-term care may help you maintain your lifestyle but usually won't improve your medical condition.If you have an indemnity policy, you might have to pay taxes on benefits that exceed your actual cost or an amount of 0 per day, whichever is greater.All policies sold before January 1, 1997, are automatically tax-qualified.To decide whether long-term care insurance is right for you, consider your personal risk factors, assets, income, and whether you have other ways to get care.Consider these factors before buying long-term care insurance: Long-term care insurance is typically less expensive if you buy it when you're younger.You might be able to deduct part of the premium for a tax-qualified long-term care policy from your taxes as a medical expense.You usually don't have to claim your qualified long-term care policy benefits as taxable income.
Many people pay for long-term care with their own money until they become eligible for Medicaid.Policies sold after January 1, 1997, are either tax-qualified or non-tax-qualified.To find out whether your policy is tax-qualified, look for a statement on your policy similar to this: "This policy is intended to be a qualified long-term care insurance contract as defined by the Internal Revenue Code of 1986, Section 7702B(b)." Ask a tax attorney, accountant, or tax adviser about how buying a long-term care insurance policy will affect your taxes.(March 2018) (PDF version) (En Español) The Cost of Long-Term Care | Deciding Whether Long-Term Care Insurance Is Right for You | Buying Coverage | How Policies Work | Long-Term Care Rates | Alternatives to Long-Term Care Insurance | Shopping for Long-Term Care Insurance | Helpful Telephone Numbers and Websites | Get Help from TDI View a list of companies selling long-term care insurance in Texas.Long-term care is a type of skilled care or personal care service you might need if you’re unable to care for yourself because of an illness, disability, or cognitive impairment like Alzheimer's disease.
It helps with routine daily activities, such as eating, getting around, and bathing.