[Company Logo Image] 

Home About Us Partner Profiles Services Offered Life Insurance ACCOUNT ACCESS Investment Terms Divorce Specialists Educational Library Facts & Stats Newsletters News Long Term Care Calculators Free Email Advice everbank accounts Links Location Feedback Form Privacy & Disclosure Site Map Site Search

 [Most Recent XAU from www.kitco.com]

[Most Recent RUSSELL from www.kitco.com]

[Most Recent XAU from www.kitco.com]

[Most Recent XAU from www.kitco.com]

MoneyCentral Stock Quote
Enter Symbol(s) 

 

   Search this site or the web        powered by FreeFind
 

  Site search Web search

 

Comparison of Tax-Qualified and Non-Qualified Long Term Care Policies

 

Tax-Qualified

 

Non-Tax Qualified

PRO

CON

 

PRO

CON
If you itemize deductions on your individual income tax return, premiums up to a maximum amount adjusted for inflation can be included with other annual uncompensated medical expenses. Total medical deductions must exceed 7.5% of adjusted gross income.

Only a small percentage of consumers with catastrophic health-care costs can qualify for the deduction of premiums.

    

No deduction of any part of the premiums.
Benefits that you may receive will not be counted as income.       Currently, benefits are not taxable. However, the U.S. Dept. of Treasury has not yet ruled on whether benefits that you may receive count as taxable income. If the benefits become taxable, the insurance company will issue Form l099.
  Benefit triggers may be more restrictive than those which may be allowed in Non-Tax Qualified policies. Federal law requires you be unable to do 2 of 5 out of 6 possible ADLs without substantial assistance.  

Benefit triggers may be less restrictive. A person needs only standby or occasional assistance for ADLs.

 
 

“Medical necessity” cannot be used as a trigger for benefits.

  

“Medical necessity” and/or other measures of disability can be offered as benefit triggers.

  
 

Disability must be expected to last for at least 90 days.

   No requirement that disability be expected to last for at least 90 days.  
  For cognitive impairment to be covered, a person must require substantial supervision.   Policies do not have to require substantial supervision to trigger benefits for cognitive impairment.  

This chart is derived and expanded from information published by the National Association of Insurance Commissioners, Shopper’s Guide to Long-Term Care Insurance.

Home Up Next

Securities offered through Sigma Financial Corporation. A registered broker/dealer. Member FINRA & SIPC.
Planning Services offered through Sigma Planning Corporation, a registered investment advisor.

Any information contained on this site does not constitute financial advice. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser licensed in your state.

We do not offer legal advice. All information provided on this website is for informational purposes only and is not a substitute for proper legal advice. If you have legal questions, we recommend that you seek the advice of legal professionals.

IRS Circular 230 Disclaimer: To ensure compliance with IRS Circular 230, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer under the Internal Revenue Code, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein.

Asset allocation, diversification and rebalancing do not assure a profit or protect against loss in declining markets. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Past performance is no guarantee of future results.

Investment products, insurance and annuity products:

Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value
Are Not Deposits Are Not Insured by Any Federal Government Agency Are Not a Condition to Any Banking Service or Activity
Send mail to Webmaster with questions or comments about this web site
Copyright © 2009 R & D Financial Services Inc. 2701 Troy Center Drive, STE 255, Troy Michigan 48084
Last modified: 05/11/10