Insurance

Depending on the state location and the facility the average cost of a nursing home stay is between $138 and $229 a day or between $50,000 and $83,000 a year. In major metropolitan areas like New York and California it runs much higher. The average stay in a nursing home is 19 months.

Generally, you must report as income any amount you receive for your disability through an accident or health insurance plan paid for by your employer. If both you and your employer pay for the plan, only the amount you receive for your disability that is due to your employer's payments should be reported as income. If you pay the entire cost of a health or accident insurance plan do not include any amounts you receive for your disability as income on your income tax return. If you pay the premiums of a health or accident insurance plan through a cafeteria plan, and the amount of the premium was not included as taxable income to you then the premiums are considered paid by your employer.

No. The cost of life insurance is not deductible.

A actuarial evaluation is a life expectancy calculation by a professional actuary. A actuary is a specialist in the mathematics of risk as it relates to insurance and annuity rates and insurance calculations such as premiums, dividends and reserves.

An Elimination period is a type of deductible. It is the length of time the individual must pay for covered services before the insurance company will begin to make payments. The longer the elimination period in a policy, the lower the premium.

Generally,life insurance premiums cannot be deducted by a business. A CPA can work with you to creatively legally deduct life insurance premiums. For example, Life insurance premiums which are part of a pension plan contribution can be deducted by the business. Speak to a CPA to learn more about this.

Any transfer of assets to an Inter Vivos Irrevocable Trust will not automatically create a 60 month period of ineligibility for Medicaid. When a transfer to a trust is made the period of ineligibility will be calculated by taking the dollar value of the asset transferred and dividing it by the average monthly cost of a nursing home as determined by the Department of Social Services in your area. Not all transfers to a trust will automatically create a 60 month period. There can be transfers made to a trust which create periods of ineligibility of less than 36 months. Speak to your local CPA or an elder law attorney for more information on trust transfers and Medicaid.

Worker's Compensation is a pretty straightforward type of coverage. It provides payment for all work-related injury medical bills, rehabilitation, and provides a certain amount of income after a waiting period (usually 7 days). It provides a death benefit, as well. Workers Compensation premiums are based on the payroll earned by employees during the policy period which usually is for one year. Rates are determined on the type of work performed. Your insurance agent can explain this coverage as it relates to the laws in your particular state.

The exchange of one life insurance policy for another one is considered a tax free exchange.
Also an exchange of a annuity contract for another anuity contract with identical recipients is a tax-free exchange.
A endowment policy for another endowment policy that provides for regular payments beginning no later than the date payments would have started under the old policy is considered a tax-free exchange.