What Is Tax Qualified Long Term Care Insurance? 
Tax qualified life insurance was established in conjunction with HIPAA in 1996 so that people who itemize could deduct long term care premiums as a medical expense on their tax returns . It also allows those who collect on their long term care insurance to receive their benefits income tax free . Tax qualified -LRB- TQ -RRB- life insurance policies have different triggers than traditional long term care insurance , which can make it harder to receive benefits . One of the triggers that was dropped was `` medical necessity '' . Therefore , a person can not get payments from their TQ LTCI policy just because a doctor wrote a letter saying they need that type of care . Also , their inability to perform at least two ADL 's must be anticipated to last at least 90 days . 