Long Term Care Insurance Funding Opportunities
Under the Pension Protection Act of 2006
The Pension Protecton Act of 2006 contained provisions that became effective on January 1, 2010 that offers significant tax benefits when funding for Long Term Care meeds.
In summary, the provisions included the following:
- Long Term Care insurance offered as a rider on a linked benefit annuity contract can be tax-qualified.
- Internal charges to pay the qualified long term care insurance rider added to a life insurance policy or annuity contract are not treated as taxable distributions.
- Life insurance policies and non-qualified annuities can be exchanged tax free (under Section 1035) to pay premiums for traditional long term care insurance policies
|
| States Available | AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, DC, WV, WI, WY |
| Provider Type | General Agency |
| Carriers | Varies |
| Carrier Ratings | A+ |
| Commission | Varies |
| Min Premium | |