Testing the Top Five Car Insurance Myths Bargaineering
Poor Credit Report Effects Auto and Home Insurance
1. If your car is stolen, vandalized or damaged by hail, wind, fire or flood are you covered?
These types of damage are covered by comprehensive and collision coverage. If you purchase comprehensive and collision insurance when you get your policy, you are covered. You are required to purchase these if you’re leasing or financing your vehicle. If your car is paid for then you are not required to carry it.
2. I’m automatically covered for a rental car.
Categories: Insurance, Money & Finance Tags: auto insurance, credit rating, myths
IRS Long Term Care Deduction
Long Term Care Tax Deductions
One of the more frequently asked questions about long term care insurance is if you can’t afford the long term premiums are there any tax benefits to owning a long-term care policy that might help subsidize the premiums.
Here are some answers to those questions given by tax experts:
1. Long-term care premiums are deductible as a medical expense (subject to the 7.5 percent-of-AGI floor), although there are limits to the deduction based on the taxpayer’s age. For example, a taxpayer between ages 61 and 70 may deduct as much as $3,080 in 2008 ($3,180 in 2009). A couple filing a joint return can deduct as much as $6,160 in 2008, if each spouse pays premiums on qualified long-term care policies. Payments in excess of any LTC benefits may be deducted as medical expenses.
Categories: Income Tax, Insurance, Money & Finance Tags: hsa, irs and long term care deduction, long term care, long term care insurance
Annuities with Long Term Care Riders
Long Term Care Insurance Pros and Cons
One reason so many people hesitate to purchase long term care policies is the expense. It is a huge expense at a time when we have so many other things to pay for like our kids college and our retirement. The government has enacted legislation to help with this problem.
The Pension Protection Act of 2006 says that starting Jan. 1, 2010, you ll no longer have to pay federal income tax on an annuity s proceeds if you use those proceeds to pay for long-term-care coverage.
Categories: Insurance, Money & Finance Tags: long term care insurance
Are Long Term Care Premiums HSA Contribution
HSA Funds for Long Term Care Insurance Premium
Long term care premiums can take a huge bite out of your budget but there is a way to cut the cost a bit and it is all tax free. You can use an HSA account to pay your premiums for long term care. If you want to learn how to evaluate long term care policies in terms of rate increases see our post Long Term Care Insurance Rate Stabilization A health savings account (HSA) is a tax-favored savings account created for the purpose of paying medical expenses. Contributions to the HSA are 100% deductible (up to the legal limit) — just like an IRA. If you use the money to pay for qualified medical expenses you do not have to pay taxes.
Long Term Care Insurance Rate Stabilization
Long Term Care Insurance Premiums
What is so frightening for us aging baby boomers is that the cost of long term care is rising at an alarming rate. It does make sense that since people are living longer, more and more people are making claims which would account for the risings rates. As hard as it to save money none of us wants to see our savings wiped out to pay for long term care.
In some cases you can find government subsidies and programs that will help you out. In some cases though you may need to supplement with long term care insurance.
