Part of our guide: Long-Term Care Insurance: Costs, Options and Planning →
Selling long-term care to individuals is often emotional. Selling it to business owners is a logical conversation about finances, and the best opening is usually taxes.
Key takeaways
- Businesses can use company dollars for LTC premiums and deduct them, with the amount depending on business structure.
- C-corporations can generally deduct the actual premium for owners, spouses, dependents, and a chosen class of employees.
- Sole proprietors, partners, and LLC owners can generally deduct premiums up to the IRS age-based eligible premium limits.
Try: “If I could show you a way to reduce your business’s tax burden while protecting your own retirement, would you be interested?”
The opening line
Business owners are always looking for tax savings. “If I could show you something that could help your business reduce its tax burden, would you be interested?” opens the door without leading with illness or aging.
How the deduction works by business type
- C-corporations: can generally deduct the actual premium paid for owner-employees, their spouses and dependents, and a designated class of employees. The benefit generally isn’t taxable to the employee.
- Sole proprietors, partnerships, LLCs, and S-corp owners (over 2%): can generally deduct premiums for themselves, spouses, and dependents up to the IRS age-based eligible premium limit, adjusted each year.
Rules have nuances, so confirm details with the client’s tax advisor. More in four ways LTC insurance provides tax advantages.
Expanding the sale
Once the owner is covered, key employees are the natural next step, sometimes with multi-life discounts. See multi-life LTC prospecting and executive bonus plans with LTC benefits.
Frequently asked questions
Can a business deduct long-term care insurance premiums?
Yes. C-corporations can generally deduct the full premium; self-employed owners can generally deduct up to IRS age-based limits.
What is the eligible LTC premium limit?
An annual, age-based cap set by the IRS on how much of a tax-qualified LTC premium counts as a deductible medical expense.
Are employer-paid LTC premiums taxable to employees?
Generally not for tax-qualified policies paid by a C-corporation, though rules vary by business structure.
Reviewed by Tim Fuller on 2026-09-25
Tim Fuller
President, SRS Inc.
Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.
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