CAPIS Long-Term Care Consulting Services
C Corps & LTCI: Tax Advantages and Lifetime Disability Protection
March 2004
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The following tax information offered is based on CAPIS’s understanding of federal tax laws in effect as of the date of this publication. Such laws are subject to legislative change and judicial and administrative interpretation. CAPIS is not authorized to practice law or to provide legal, accounting or tax advice. Before considering the application of the following information to your own situation, you should consult your legal or tax advisor.

Long-term care insurance (LTCI) is one of the most attractive physician executive benefits available today. Featuring significant tax advantages and lifetime disability protection, LTCI is a highly cost effective way of protecting you, your spouse, employees and family members from potentially devastating costs associated with needing care for an extended period of time. It also allows you to reward your most valued employees for their loyalty, dedication, and contributions to the success of your medical practice.

Personal Financial Risk Management Services for CAP Members CAP Affiliated Physicians Insurance Services (CAPIS) 800-356-5672 Featuring… Long-Term Care Insurance Disability Income Safe Money” Investing Life Insurance And More

The tax advantages of purchasing LTCI through your practice can be significant, especially if you file taxes on your business entity as a C Corporation. The business checkbook pays for tax-qualified policies on a tax advantaged basis, reducing the net costs by 40% to 50%. There is no requirement to provide the benefit to all employees; and LTCI can be offered to just one person or to a few of your most key people. Tax advantages also exist even if your practice is not organized as a C Corporation.

CAPIS has negotiated special pricing with the leading LTC insurers. This provides an even greater incentive for Member business owners interested in adding LTCI employee benefits for themselves or others in order to reward and retain key staff.

Notwithstanding the considerable tax advantages, truly the greatest value of buying long-term care insurance is its unmatched ability to pay for the staggering costs of care.

The average cost of care today ranges from $58,000 to $80,000 per year, depending on the geographic area. By the year 2030, the average stay in a nursing home is projected to cost nearly $500,000. As a result, saving for one’s life after retirement and passing financial assets to the next generation have become less certain and more expensive than ever.

Yet, even the best thought-out retirement and estate planning rarely takes into consideration living a long life. Put another way, assets and income are typically allocated to pay for retirement — not for the consequences of living a long life AND needing care.

What’s the best way to protect your hard-earned assets and your family’s quality of life? Prudent people shift this risk to an insurance company via a long-term care insurance policy. No matter how well off you are financially, unless you have the resources of a Bill Gates, LTCI maximizes your ability to get the quality and duration of care you and your family will want and need.

So, give me a call at 1-800-356-5672 and find out more about long-term care insurance programs available to you through CAPIS. Or email me at gschoenfeld@cap-mpt.com.

Glenn Schoenfeld, CLTC
Vice President
CAP Affiliated Physicians Insurance Services (CAPIS)
1-800-356-5672
gschoenfeld@cap-mpt.com

CAPIS Long-Term Care Consulting Services are available only to CAP Members. It’s just another benefit of CAP Membership — highly personalized attention and wholly objective expertise in risk exposure protection that delivers the most trusted, appropriate and cost-effective liability protection solutions available. We offer a valuable resource for long-term care risk planning…along with reduced pricing only afforded by your being part of CAP.

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