Managing Long Term Care Insurance Taxes

Tax Qualified & Non-Tax Qualified

Policy triggers may vary depending on whether the policy is tax qualified or non tax qualified, but because most policies are tax qualified(tax-deferred), the triggering events for most insureds are cognitive impairment or the inability to perform at least two of six "Assisted Daily Living Skills." Bathing, dressing, toileting, transferring getting in and out of bed or chair, eating and bladder control.