Thursday, 8 March 2007

Missouri House Offers More Incentive To Buy Long-Term Care Insurance

The Missouri House of Representatives has introduced new legislation that would provide incentives for residents to invest in long-term care insurance as they approach retirement. The Missouri House gave the bill initial approval by voice vote.

The bill includes increased income tax deductions for long-term care insurance premiums — from 50% to 100% of the annual LTC premiums. The legislation also would provide more protection for the assets of long-term care insurance buyers.

The bill, designed by Republican State Representative Chuck Portwood, has taken some criticism from the other side of the aisle. Democrats claim people with lower incomes can’t afford long-term care insurance even with the tax deductions, and would still need state and federal help for care. The state wouldn’t end up saving money because residents who benefit the most from the tax deductions can already afford long term care insurance.

But Representative Portwood pointed out that “the ultimate goal of the legislation is to encourage personal responsibility.”

The estimated budget for the new legislation would cost roughly $2.8 million for the state. The bill requires a second vote to be sent to the Senate for approval, then on to the governor to be signed. Last year a similar bill was approved in the House, but killed in the Senate.

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Posted by Insurance Quote at 6:06 PM in Senior Insurance