Part of our guide: Long-Term Care Insurance: Costs, Options and Planning →
Every spring, clients sit down with their finances whether they want to or not. That makes tax season one of the easiest times of year to bring up long-term care.
Key takeaways
- Clients are already reviewing their financial picture at tax time, so gaps are easier to see.
- Premiums for tax-qualified LTC policies may be deductible, and many states offer credits or deductions.
- Using a tax refund to pay the annual premium can make coverage feel effortless.
Turn the tax refund into the long-term care premium, and the annual payment becomes a non-event.
Clients are already in planning mode
Tax preparation forces clients to look at income, savings, and expenses. It’s a natural moment to ask what would happen to those numbers if they needed care, and whether their plan covers it.
Lead with the tax benefits
Tax-qualified LTC premiums may be deductible as medical expenses up to IRS age-based limits, self-employed clients can often deduct them directly, and many states offer their own deductions or credits. Details are in four ways LTC insurance provides tax advantages.
Use the refund
Suggest that clients put their tax refund toward the annual premium. It turns a new expense into money they weren’t counting on, and makes the purchase easier to commit to each year.
Work with tax professionals
CPAs and tax preparers see clients’ full financial picture every year. Partnering with them to flag clients who could benefit from LTC planning can be a steady referral source.
Frequently asked questions
Are long-term care premiums tax deductible?
Premiums on tax-qualified policies may be deductible as medical expenses, up to age-based IRS limits, and some states offer additional deductions or credits.
When is a good time to talk to clients about long-term care?
Tax season, annual reviews, and life events such as retirement or a parent needing care are natural openings.
Can a tax refund be used to pay LTC premiums?
Yes. Many clients find using their refund makes the annual premium easier to manage.
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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