Category

Individual Life & Disability

IRS Issues New Tax Deductibility Limits for Long-Term Care Insurance

By | Employee Benefits, Individual Life & Disability, Personal Insurance, Specialty Insurance

Have you delayed securing a long-term care policy? Perhaps the new IRS deductibility guidelines might prompt you to consider a new policy.

Premiums for a tax-qualified long-term care policy are considered a medical expense. For individuals who itemize tax deductions, medical expenses are deducible to the extent they exceed the current amount required to meet an individual’s adjusted gross income (AGI). In addition, Maryland offers a one-time $500 tax credit for a tax-qualified long-term-care policy.

With the cost of nursing home care in Maryland approaching $10,000 per month, most financial planners recommend a comprehensive elder care strategy.

This includes a policy to transfer part of the risk from you to an insurance company. If you do not have a policy, you are 100% self-insured. Even a small policy would conserve some assets and part of your estate.

The American Association for Long-Term Care Insurance has more detailed information regarding long-term care tax deductions. You can obtain this information at www.aaltci.org/tax.

For more information and specific quotes for a long-term care policy, please contact Keith Mathis at 443-449-2327 or by email kmathis@medchiagency.com.

Life Insurance and Estate Planning

By | Individual Life & Disability, Personal Insurance, Specialty Insurance

A life insurance contract is a valuable part of many individual’s overall estate. Thus, it should be reviewed on a periodic basis to determine: value, performance, beneficiary and ownership, as well as appropriateness towards achieving the original purpose and objective for which it was intended.

An immediate estate value of $1,000,000 can be created by taking out a term life policy for only a few hundred dollars per year when the insured is between the ages of 30 and 50, if they are in good health.

As one ages, the cost of term life increases. Therefore, a policy established on a premium basis is recommended, if there is still a need for life insurance in the estate. Universal life policies today, even on a minimum funded basis, can last to age 120. Life Insurance for estate tax purposes is highly liquid. In the case of sudden death, assets do not require immediate liquidation in the stock or real estate market. A life insurance policy can be paid to the estate in as little as seven days.

In summary, life insurance for estate tax purposes is cost effective, can be free of federal income tax, and is highly liquid. To determine if your life insurance policy still meets your needs, or if you are wanting to speak with a sales representative regarding implementing a policy, please contact:

Keith Mathis
Sr. Sales Executive, Life & Disability
Office Direct: 443-449-2324
Fax: 410-649-4154
Email: kmathis@medchiagency.com

Check out this article from Securian Financial on preparing you for long-term care!

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Did you know that November is “Long-Term Care Awareness Month”?

By | Individual Life & Disability, Personal Insurance, Specialty Insurance

Long-term care insurance is designed to help you cover the costs of skilled care as you age.

Are you covered? If you do not currently have a policy in place, now is the time to get one!

If you wait too long, your prospective long-term care policy could become unavailable or highly expensive.

Call today for a “no cost” consultation!

Keith Mathis
Sr. Sales Executive, Life & Disability
Office Direct: 443-449-2324
Fax: 410-649-4154
Email: kmathis@medchiagency.com

Check out this article from Securian Financial on preparing you for long-term care!

Follow us on Facebook and LinkedIn for other exciting news and updates!

Are you aware of the increase in retirement expenses?

By | Individual Life & Disability, Personal Insurance, Specialty Insurance

According to a CNBC article, “The national annual median cost of a private room in a nursing home is $100,375.”

It is important to plan your future when it comes to long-term care expenses.

Start planning for your long-term care today by speaking with our sales team!

Keith Mathis
Sr. Sales Executive, Life & Disability
Office Direct: 443-449-2327
Fax: 410-649-4154
Email: kmathis@medchiagency.com

Follow us on Facebook and LinkedIn for other exciting news and updates!

Long Term Care Planning

By | Individual Life & Disability, Personal Insurance

A wise man once said, “If you don’t know where you are going, any road will take you there.”

Such is the case with long-term care planning. Many people realize that at some point it will be likely they or their partner will need assistance with the activities of daily living. As we grow older we see first-hand parents, relatives, or colleagues who suffer health conditions that require hands-on care. Even so, most people put off implementing a plan due to cost or the thought that it will not happen to them.

We have seen several financial plans that discuss the risk of long term care planning and recommend coverage yet a plan is never implemented. If this is the case the individual is 100% self-insured.  With the average cost of nursing home care up to $10,000 a month, it can be a huge drain on assets. This is compounded by the fact that if the person is still working their employment income will be affected. The average stay in a facility is 3-5 years. This puts on average up to $600,000 of assets at risk! A longer stay in a facility due to dementia will further erode assets and your  financial well-being.

An elder care attorney can look at ways to shift assets (prior to five years of a claim) that can shelter funds and property. But, in most cases, control is relinquished to a trustee or other family members. Most financial planners agree that an insurance policy that shifts the cost from the insured to the insurance company is the best strategy for most people. Policies have evolved over the years to include home health, adult day care, assisted living as well as nursing homes. Plans are also available that return premium, have a death benefit, and build cash value if at some point the policy is no longer need or wanted.

The MedChi Insurance Agency can assist you in navigating policy options and determining if a long-term care policy would fit into your plan based on your own goals and objectives. We have assisted many physicians over the years in implementing a long-term care insurance policy. For more information or to set an appointment please contact Keith Mathis at 443-449-2327 or by email at kmathis@medchiagency.com.

As a member of the Maryland Psychiatric Society we welcome the opportunity to review your current coverage and assist you in securing a long-term care insurance policy.

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Has Your Group Disability Policy Been Updated?

By | Employee Benefits, Individual Life & Disability

Unlike group health insurance, many group disability plans are not reviewed every year at renewal, and the practice simply renews the policy as is. As a result, we have found many practice groups have outdated group disability programs.

The MedChi Insurance Agency can meet with you to complete a review of your program and offer alternative quotes if deemed necessary. Some of the areas we review:

• Monthly benefit: Insurance carriers now offer a much higher monthly benefit for the professional staff. You might have a plan that offers 60% of the physician’s salary but only to a maximum of $6,000 of monthly benefit. This could be changed to as much as $20,000 of monthly benefit or more.
• Definition of earnings: Does the plan cover bonuses as well as salary?
• Own Occupation Covered: Many older plans only cover a physician’s own occupation for a period of 2 years. An enhanced plan would provide coverage for own medical specialty until the age of 67.
• Are benefits taxable: Plans can be set up in a manner to provide benefits free of federal income taxes to the covered employee.
• How long are benefits paid: Benefits can now be offered to age 70.

To make sure you are obtaining the best coverage for your premium dollars contact Keith Mathis for a review at 443-449-2327 or kmathis@medchiagency.com.