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Policy Matters

Fourth Quarter 2021

NEWS YOU CAN USE FROM THE EXPERTS AT LLIS

For the first time since The American Association for Long-Term Care Insurance began reporting this information, the IRS did not raise the tax deductible LTCi limits for 2022.

What does that mean for your clients?

  • The maximum deductibility remains high
  • Significant benefit for older individuals and couples
  • Tax deductibility is one of the best-kept secrets and potential benefits for seniors
  • Deductibility is especially valuable after retirement (income decreases and health costs typically increase)
  • The tax advantages are available only on tax-qualified long term care insurance policies
  • Some hybrid policies (aka linked benefit, asset based care, combination insurance) also offer an LTCi tax deduction

According to IRS Revenue Procedure 2021-45, deductions for a couple age 70 or older:

2022: $11,280
2021: $11,280
2020: $10,860
2019: $10,540

SOLUTIONS AVAILABLE THROUGH LLIS

Term Life Insurance | Low-Load Universal Life (Individual & Survivorship) | No Lapse Guaranteed Univeral Life (Individual & Survivorship) | Long Term Care Insurance | Disability Insurance | Critical Care Insurance | Low-Load Variable Annuity | Immediate and Fixed Annuities | Low-Load Variable Universal Life | Hybrid Life/LTCi | Hybrid Annuity/LTCi

(We recommend low-load permanent life insurance and annuities when possible)

(Not all policy types available in all states)

For a list of current providers, visit the Advisor Tools section of our website and click on "Insurance Companies We Work With".

NAPFA ACP Garrett Planning Network NAPFA XYPN