The U.S. Department of Health & Human Services reports the average cost for a private room in a nursing home is $229 a day or $6,965 a month; $3,293 a month for an assisted living facility; and, $21 an hour for a home health aide. Learn more at this link to LongTermCare.gov.
Here’s some good news – for a change – from IRS; a portion of Long Term Care (LTC) insurance premiums is deductible from income.
- At age 40 and under, the deduction limit is $380
- From age 41 – 50, the limit is $710
- From age 51 – 60, the limit is $1,450
- From age 61 – 70, the limit is $3,800
- Over age 70, the limit is $4,750.
I’m in the process right now of helping a 74 year old acquire LTC insurance with a $300 day
benefit. Almost half the premium will be deductible from her income. That makes this badly needed coverage much more affordable.