AHIA APPLAUDS LTC EFFORTS
For Immediate Release
Contact: Caitlin Kubler 703-770-8251, ckubler@naifa.org
February 7, 2007
FALLS CHURCH , VA — The Association of Health Insurance Advisors (AHIA), the health insurance division of the National Association of Insurance and Financial Advisors (NAIFA), applauds Senator Blanche Lincoln (D-AR) and Senator Gordon H. Smith (R-OR) for their introduction of legislation to encourage Americans to invest in their future long-term care needs.
The bill would create a new type of savings mechanism for the purpose of preparing for the costs associated with long-term care services and purchasing long-term care insurance. “AHIA is please to support this approach to providing long-term care security” states AHIA President, Lawrence E. Lounds, CLU, ChFC, LUTCF.
Specifically, the Smith-Lincoln legislation would allow an individual who establishes a long-term care trust account to contribute up to $5,000 per year to their account and receive a refundable 10 percent tax credit on that contribution. Interest accrued on these accounts would be tax free, and funds could be withdrawn for the purchase of long-term care insurance or to pay for long-term care services.
“This represents meaningful tax relief and is an important incentive for Americans to take greater personal responsibility for their long-term care needs” continues Lounds.
The bill also would allow an individual to make contributions to another person’s Long-Term Care Trust Account. “All too often the devastating costs associated with long-term care place undo burdens on families. Allowing individuals to make contributions on behalf of their loved ones offers a great way to prepare for their family needs and avoid a financial crisis at the time when care is needed” states Lounds.
“AHIA looks forward to working with Congress to alleviate the burden on public programs and American families” concludes Lounds.
