Long Term Care insurance premiums have been rising for many consumers, but financial experts agree that everyone, including the wealthy, should consider buying coverage. “I consider it portfolio insurance,” says Ken Moraif, a certified financial planner and host of the radio show “Money Matters.” Since long term care expenses can quickly wipe out a person’s investments, having insurance can protect assets for future use or heirs. Those who do buy a plan may be in line to receive tax benefits as well. “Purchasing long term care insurance is one of the few ways the IRS lets you deduct the cost for future care in the current tax year,” Moraif says.
Here’s a closer look at exactly what tax benefits come with long term care insurance.