Remember, too, that a tax-qualified policy has the definite benefit that its benefit payments are not taxed as income. Also, you might want to consider whether you would need to pay to have your tax returns prepared if you do decide to itemize deductions. After completing step 1, you should have a good idea of whether the tax break on a portion of your premiums on a tax-qualified policy is financially meaningful to you. Your income and deductions might change in retirement. Here are some examples of general differences between policies.
Every policy is different, so the following are general examples.
In order to qualify for long term care benefits, you must meet certain policy requirements. Medical Necessity . Therefore, in general, it is better for a policyholder if a policy includes medical necessity as a benefit trigger. The inability to carry out these activities triggers eligibility for long term care insurance benefits. Tax-qualified policies MUST include at least five of the six ADLs required by law.