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larry967
New Member

insurance buyout

i have a long term care policy - the co is offering to buyout my policy - they will refund the premiums I have paid with no interest (i get my money back) this is a "qualified ins plan" all paid with after tax money.

Will I owe any tax on the refund? 

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Accepted Solutions
ReginaM
Expert Alumni

insurance buyout

No, you will not owe taxes on the company's buyout of your policy since you paid the premiums with after tax dollars.  The benefits of tax-qualified long term care insurance policies are generally received tax-free by the policyholder.  Tax-qualified long term care insurance policies are treated the same way qualified health insurance is treated.  

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1 Reply
ReginaM
Expert Alumni

insurance buyout

No, you will not owe taxes on the company's buyout of your policy since you paid the premiums with after tax dollars.  The benefits of tax-qualified long term care insurance policies are generally received tax-free by the policyholder.  Tax-qualified long term care insurance policies are treated the same way qualified health insurance is treated.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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