What is the difference between a “qualified” and a “non-qualified” long term care insurance policy?
Under the “Health Insurance Portability and Accountability Act” (better known as HIPAA), at least some long term care insurance premiums and benefits receive favorable income tax treatment. If a given LTCI policy meets the federal standards, premium payments are deductible (but see below) and benefits received under the policy are not treated as taxable income. This may make a particular policy more attractive to a prospective buyer.
