Jesse Slome, leading long term care insurance expert, director AALTCI

The Observer, an online news service, has just published an editorial feature by Jesse Slome of the AALTCI in support of a viable long-term care insurance marketplace.

“The future of traditional long-term care insurance is vital to all Americans and the matter needs to be addressed,” states Jesse Slome, director of the American Association for Long-Term Care Insurance an advocacy group.

The article focuses on the important role long-term care insurance plays in support of Americans.  “Long-term care insurance already benefits hundreds of thousands of individuals and their families,” Slome points out.

AALTCI’s director notes that annually, LTC insurers pay out approximately $8.6 billion and are expected to pay out between $150 and $180 billion over the next decade.  “The number of Americans receiving LTC insurance benefits is increasing each year, with more than a quarter of a million policyholders receiving benefits in 2016,” Slome adds.

IMPORTANCE OF GENWORTH TRANSACTION

The article authored by Slome makes note of the importance of the Genworth acquisition by China Oceanwide, and voices the industry expert’s concerns should the transaction not take place.

“Genworth is one of the few remaining U.S. insurance carriers committed to long-term care insurance and one of the few carriers working with regulators and both state and federal governments on solutions to overcome the widespread challenges plaguing the industry,” Slome points out in the editorial. “However, Genworth will only be able to steward the change needed if it receives the stabilizing cash infusion provided by the transaction [with China Oceanwide].”

To read the full article go to:
http://observer.com/2017/09/long-term-care-insurance-depends-on-genworth-oceanwide-transaction/

The post AALTCI Editorial in Observer Advocates for Future of Long-Term Care Insurance appeared first on American Association for Long Term Care Insurance.

“The IRS is aware of the growing non-compliance by seniors who fail to take minimum IRS distributions and is expected to crack down to capture lost tax revenue,” declares Jesse Slome, director of the American Association for Long Term Care Insurance (AALTCI).  Some reports note that as many as 250,000 seniors fail to take the minimum required distribution.

“The required minimum distribution is the amount the federal government requires you to withdraw each year, usually after you reach age 70½, from your retirement accounts,” Slome explains.  “You pay taxes on the withdrawn funds and failure to comply can result in a potentially hefty 50 percent tax penalty.”

“The amounts withdrawn could be used to pay long term care insurance premiums which could be fully tax deductible to the senior,” Slome notes.   “There’s a two-fold tax advantage, avoiding the income tax and potential penalty and of course the value provided by having the long term care insurance protection.”

Individuals who are age 70 or older can each deduct $4,550 of their premiums off their 2013 tax filings.  “If both spouses are over age 70, that’s a $9,100 potential tax deduction you don’t want to overlook,” Slome adds.   Individuals must meet certain levels of related tax-deductible expenses to claim the tax deduction for long term Care insurance.    “Many seniors have other medical and even dental expenses that enable them to easily meet the threshold required to make long term care insurance premiums deductible.”

Slome noted that seniors who do not already own this protection should work with a knowledgeable specialist who can help them navigate the health requirements imposed by leading insurers including Genworth Financial, John Hancock, Mutual of Omaha and Transamerica Long Term Care.  “Not everyone can health qualify for long term care insurance,” Slome shares, “and the health requirements can vary quite significantly from one insurer to the next.”

For information about long term care insurance tax deductions and costs  or to connect with a long term care insurance specialist who is a member of the Association call the organization at (818) 597-3227 or on their website at www.aaltci.org where access to free consumer guides is available.

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“Finally, some good news has been the reaction from insurance professionals,” says Slome, director of the long term care insurance association that has been releasing the findings of their 2014 Long Term Care Insurance Price Index.  “The past few years have seen news reports citing rate increases so any news regarding people paying less for this important protection is most welcome.”

According to the Association’s first release of their 2014 price study, The typical healthy 55-year-old male can expect to pay almost 15 percent less for long term care insurance coverage purchased in 2014 compared to last January.    ”Men have historically been resistant to purchasing long term care insurance,” Slome adds.  “So, perhaps this dose of good news will help address their denial of the reality of aging and the risk of needing costly care.”

The AALTCI study does reveal that couples face an increase in rates compared to costs in the prior year.   Leading insurers included in the study include Genworth Financial, John Hancock, Mutual of Omaha, Transamerica, New York Life and Northwestern Mutual.

The Association began releasing the findings via a national distribution supported by The National LTC Education center and HTA Financial Services, a leading long term care insurance brokerage firm headquartered in West Chester, PA.  “We sincerely appreciate their commitment to building the industry and to helping us disseminate this positive news,” Slome added.  He notes the news story has been utilized by nearly 400 media outlets.

Free access to read informational guides is available on the Association’s website.  To obtain long term care insurance costs connect with a professional by calling the national organization at (818) 597-3227 or visit the Association’s website at www.aaltci.org.

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