6 Tax-Smart Strategies to Fund a Long-Term Care Insurance Policy

For clients who own a tax-qualified LTC insurance policy, the tax advantages are significant. Whether it's a traditional or hybrid plan, benefits grow tax-free within the policy — and if a claim is made, those benefits are generally received tax-free as well. In 2026, benefits are tax-free up to the actual cost of care, or $430 per day for cash indemnity plans (indexed annually).

e-based schedule and the 7.5% of AGI threshold.

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