A tax-qualified Long-Term Care Insurance policy is a policy that meets federal guidelines. These policies are eligible for federal and state tax incentives and deductions.
In the 1980s, the government regulated Long-Term Care Insurance with Section 7702(b). Our FAQ article on regulations covers Section 7702(b) and other relevant regulations in more depth.
All legal Long-Term Care Insurance policies are required to meet guidelines under Section 7702(b). That means any legal Long-Term Care Insurance policy is tax-qualified.
Tax-qualified policies are eligible for tax deductions and, in some states, tax incentives. To learn more about how your policy can help you save on taxes, please read our article on tax deductions.