---
title: Tax Advantages of Long-Term Care Insurance
description: Are you using the tax advantages available to pay for Long-Term Care Insurance this year?
image: https://www.ltcipartners.com/hubfs/Excuses...Excuses.jpg
---

## Group LTC Benefits Blog

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- [The Advisor's View of Long-Term Care Planning](https://www.ltcipartners.com/blog)
- [Planning Tips and Carrier News for Advisors](https://www.ltcipartners.com/carriernews)
- [Consumer Planning Blog](https://www.ltcipartners.com/planning-for-long-term-care-in-america)
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Jul 10, 2017 • [Steve Cain, CLTC®, Director Sales & Business Development Leader](https://www.ltcipartners.com/group-ltc/author/steve-cain-cltc-director-sales-business-development-leade)

## Tax Advantages of Long-Term Care Insurance

- [Group LTCI,](https://www.ltcipartners.com/group-ltc/topic/group-ltci)
- [Employee Benefits](https://www.ltcipartners.com/group-ltc/topic/employee-benefits)
- [Multi-life](https://www.ltcipartners.com/group-ltc/topic/multi-life)

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**7702B, 162, 213, 106 and Treasury Regulation 1.105-5***

*Do these numbers mean anything to you?**  
*If you’re working with business owners…they should!**

LTC Insurance enjoys unique and preferential tax treatment for business owners that include:

- Deducting LTCI premium
- Offering coverage to key or select employees (carve-out)

And the policy benefits are income tax-free!

 Additionally, W2 employees can use HSA dollars to pay for LTC Insurance.

 Thanks to HIPAA legislation in 1996, the IRS created uniform policy standards and defined LTCI plans that meet certain requirements to be Tax-Qualified (TQ). Almost 100% of current Standalone LTC Insurance plans sold are Tax-Qualified and many riders on Life Insurance plans are considered Tax-Qualified too (which means business owners may be able to deduct the TQ rider portion of Life Insurance policies).

 When working with a business owner, make sure you discuss these unique advantages of TQ LTC Insurance.

[*IRS Code Sections](https://www.ltcipartners.com/hubfs/irc----ltc-insurance.jpg)

 

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## Written by [Steve Cain, CLTC®, Director Sales & Business Development Leader](https://www.ltcipartners.com/group-ltc/author/steve-cain-cltc-director-sales-business-development-leade)

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