Long term care ins?

Forum|Forum|7 years ago
June 3, 2019
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My mom's long term care ins is for only 3 years. I read in Publication 17 it has to be renewable to be a qualified plan, so I believe it is not a qualified plan because I can not renew it. However I want to be positive. Can you please help me?

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I am concerned that we may be dealing with some confusion about the terms of the long-term insurance contract. Are you saying that the contract is limited to only providing three years of care? Or that you are only paying premiums for three years and then coverage ceases? I suspect it is the former.

When IRS Pub. 502 Medical and Dental Expenses speaks of the contract being "guaranteed renewable," it is speaking of the term of coverage during which premiums are paid and a claim can be made. It means that the insurance company cannot cancel the contract because of your mother's age or health. If your mother's contract will provide her with three years of care, but that period can begin a month form now, three years from now, or ten years from now, as long as you continue to renew the contract and pay the premiums, that will be a "qualified" long-term can contract.

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Anonymous

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I am concerned that we may be dealing with some confusion about the terms of the long-term insurance contract. Are you saying that the contract is limited to only providing three years of care? Or that you are only paying premiums for three years and then coverage ceases? I suspect it is the former.

When IRS Pub. 502 Medical and Dental Expenses speaks of the contract being "guaranteed renewable," it is speaking of the term of coverage during which premiums are paid and a claim can be made. It means that the insurance company cannot cancel the contract because of your mother's age or health. If your mother's contract will provide her with three years of care, but that period can begin a month form now, three years from now, or ten years from now, as long as you continue to renew the contract and pay the premiums, that will be a "qualified" long-term can contract.

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oldjelloAuthor

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She is all ready on the LTC ins. I received the first 1099 this year so I have to file her 2016 income taxes. It is only for 3 years so that is why I questioned it. I am sorry for the confusion I should have included that at the beginning. Thank you for all your help.