insurance buyout

larry967 · ‎January 17, 2020

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?

ReginaM · ‎January 17, 2020

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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ReginaM · ‎January 17, 2020

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"

insurance buyout