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Distribution Partners


Accountants and CPA's

Tax Advantages and Consequences

Retirement and tax planning are important areas of financial planning that Accountants and CPA’s frequently discuss with clients. However, many accountants often avoid discussing the need for a contingency plan to meet the costs of a long-term care illness. This is understandable as long-term care and long-term care insurance can be an emotionally charged issue that some clients would prefer not to broach. Nevertheless, making good decisions to meet this contingency is prudent financial management.


You have a real opportunity to help clients prepare for the future. While it may be a difficult subject to raise, your clients will make a better decision if you help educate them. Together, one of our dedicated long-term care specialists will work with you and your clients to help make this an informed decision about their financial future.

Preserve Your Client’s Wealth

A good long-term care insurance policy will enhance your client’s estate by substituting insurance dollars to pay for long-term care rather than having to use their principal to pay for it. The cost of care is growing by about 5.8% and in 20 years if your clients lived in an area where care currently costs $60,000 it could cost around $180,000!

Preserve Your Client’s “Step-up” in Capital Gain Basis

Long-term care insurance can help preserve tax attributes like the “step-up” in capital gain basis that otherwise would be lost. Without long-term care insurance, it is possible that additional taxes would be owed to the IRS if those assets had to be liquidated to pay for long-term care.

Protect Your Client’s Qualified Funds

Many times clients have to liquidate qualified funds to pay for long-term care, and then are hit with the tax ramifications of doing so. A long-term care insurance policy can prevent them from having to liquidate their qualified funds.

$12,000 Gift Tax Exclusion

Long-term care insurance can be used to capitalize on their annual gift exclusion allowance. If your clients want to pay the premiums for any family members, the premiums paid (directly to an insurance company) can be considered “gifts.” IRC2503(e) This is in addition to the annual $12,000 gift tax exclusion

Tax Savings for Business Owners

Your clients that own businesses should be educated on how they can purchase long-term care insurance through their business. Long-term care insurance can be paid for by the business for the owner only, unlike other forms of insurance.

For more information on long term care insurance, or to schedule an appointment please fill out a form here.
Interested in receiving a quote for long term care insurance? Please fill out a quote form.