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South Carolina Course Update December 2018

South Carolina Life & Health Insurance courses have been updated with annual outline changes effective immediately. Continue reading for South Carolina Life & Health course Addendums.
Continue scrolling below to read through addendum or click the link below to download:

> South Carolina Life & Health Addendum


SOUTH CAROLINA LIFE & HEALTH

Addendum: for use with South Carolina Life, Health, and Life & Health online ExamFX courses and study guides version #18988en (Life) and 18996en (L&H), per exam content outline updates.

The following are content additions to supplement your existing text unless otherwise indicated:

LIFE

The following chapter has been deleted from the exam content outline and is no longer testable: Qualified Plans

HEALTH

Disability Income and Related Insurance

E. Business Disability Insurance

Business Overhead Expense

Business overhead expense (BOE) insurance is a unique type of policy that is sold to small business owners who must continue to meet overhead expenses such as rent, utilities, employee salaries, installment purchases, leased equipment, etc., following a disability. The business overhead expense policy reimburses the business owner for the actual overhead expenses that are incurred while the business owner is totally disabled. This policy does not reimburse the business owner for his or her salary, compensation, or other form of income that is lost as a result of disability. There is usually an elimination period of 15 to 30 days and benefit payments are usually limited to one or two years. The benefits are usually limited to covered expenses incurred or the maximum monthly benefit stated in the policy. The premiums paid for BOE insurance are tax deductible to the business as a business expense. However, the benefits received are taxable to the business as received.

Federal Tax Considerations for Health Insurance

A. Personally-owned Health Insurance

Long-Term Care Insurance

Long-term care premium payments are deductible as a medical expense to the extent that when added to all other unreimbursed medical expenses, the total exceeds 10% of the taxpayer’s adjusted gross income if the taxpayer itemizes his/her deductions. However, there is a limit on the amount of premium that can be deducted depending on the age of the insured (taxpayer) at the end of the year. The IRS sets annual limits for that amount, and any premium above these limits will not be considered a medical expense, and therefore, cannot be tax deductible.