FAQ Category Archive: Employer

Is it better to take the cash benefit every month from my long term care policy and invest the unused portion, or is it better to leave that portion “in the policy” knowing I may never get most of it?

I think it is better to take it, but I would save it in something that is no risk. You may need a lot more care than your monthly benefit will pay at the end of your life. If you save it safely, then you will have additional money to put with your monthly benefit …

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Our company is an S Corp, and I believe there are special rules for them. I own 100% of the company and my wife works for the company. The company is going to contribute 50% to the premium for my policy and all of our employees. Will this 50% contribution be deducted as a business expense for the policies for my wife and I, or will the deduction be disallowed? If yes, I’m thinking I could pay our premium from our Health Savings Account to purchase with pre-tax dollars. Do you know?

I have included a link below that answers this question thoroughly but here’s the short answer. You can deduct the age-based premium for yourself and your wife on Line 29 of Form 1040, which is where you deduct your health insurance.  The only difference is that health insurance is 100% deductible and LTCI goes by …

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In one of your answers, you suggested looking into buying a small plan from an insurance company to supplement the insured’s CalPers plan and to decrease the benefits on the CalPers plan when there is another rate increase. That is exactly what I’d like to do. I have reduced my lifetime protection to 10 years and am looking at modest plans to supplement the CalPers plan. However, even though I have been paying CalPers LTC premiums from almost the first day of its inception, CalPers is telling me that my CalPers plan would always be secondary to the new plan. And, the LTC insurance broker is telling me that the plan that has been in effect the longest would be the primary. What can I do in this situation?

That is an excellent question. Even though that’s unusual, I don’t see any problem with it operating that way. It would be like having a primary and secondary health insurance that many couples have, or with Medicare, Medicare pays first and a Medicare Supplement pays 2nd.  You would file the claim with the new policy …

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