Alzheimer's Family Assistance Act of 2007- Amends the Internal Revenue Code to: (1) allow a phased-in tax credit ($1,000 in 2007 increasing by $500 each year until allowing $3,000 in 2011) for family caregivers of spouses and dependents who have long-term care needs; (2) allow a tax deduction for long-term care insurance premiums; and (3) apply certain consumer protection standards to long-term care insurance contracts.