Tax Incentive through Long Term Care Insurance
Long term care insurance is a good idea in case you have to take medical care for an extended period in a nursing home facility or at home. The huge costs in this event could drain your resources completely.
There are provisions of government assistance for health insurance during old age but those programs donít cover long term care. People have to arrange for long term care insurance on their own. The program of Medicaid does provide some coverage for long term care but qualifying for Medicaid is very strict. The government wants people not to depend on federal programs for these expenses. Hence you need to buy your own long term care insurance policy to finance your long term care bills should you need it.
An incentive for buying this kind of a policy is the benefit with the taxes that you will get. The tax savings are greatest when paid by business owners. The premiums paid by you are tax deductible and so are the benefits of the policy. An employer can also offer this insurance benefit to his employee where it will not be considered as part of his income. For people who buy the insurance on individual basis, he can expect to get the same provisions as received through medical insurance.