Most clients understand the need to protect their retirement savings from market risk. Far fewer realize that one of the biggest threats to retirement may come from a prolonged care event due to a chronic illness or cognitive impairment.
What many advisors overlook is that long-term care insurance (LTCI) offers something increasingly rare in the tax code: the potential for tax deductions when premiums are paid and generally tax-free benefits when care is needed. Qualified LTC policies can provide favorable tax treatment under federal tax law, making them one of the most tax-efficient protection strategies available today.
If you haven't thought about long-term care planning recently, the 2026 tax updates provide several reasons to take a first or second look.
