--- title: What the Many Varieties of LTC Insurance Have in Common description: Explore the various types of tax-qualified long-term care insurance products and determine which best suits your client's needs for comprehensive coverage. image: https://lhc.naifa.org/hubfs/LTCI_122325.webp --- [**](https://lhc.naifa.org/lecpblog/what-the-many-varieties-of-ltc-insurance-have-in-common#tmpmodule_1610372601348145) - [Join](https://belong.naifa.org/join) - [Renew](https://community.naifa.org/login.aspx) - [Find an Advisor Pro](https://findapro.lifehappens.org/) **** [![belong.naifa.orghs-fshubfslogo_NAIFA_white](https://lhc.naifa.org/hs-fs/hubfs/social-suggested-images/belong.naifa.orghs-fshubfslogo_NAIFA_white.png?width=140&height=109&name=belong.naifa.orghs-fshubfslogo_NAIFA_white.png) ![logo_NAIFA_NEW](https://lhc.naifa.org/hs-fs/hubfs/logo_NAIFA_NEW.png?width=100&height=73&name=logo_NAIFA_NEW.png) ](https://lhc.naifa.org/) [**](https://lhc.naifa.org/lecpblog/what-the-many-varieties-of-ltc-insurance-have-in-common#tmpmodule_1610372601348145) - [Centers Home](https://centers.naifa.org/centers) - [LHC Home](https://lhc.naifa.org) - LHC Collectives - [Limited and Extended Care Planning Collective](https://lhc.naifa.org/lecp) - [Medicare Collective](https://lhc.naifa.org/medicare) - Advisory Councils - [Limited and Extended Care Planning Advisory Council](https://lhc.naifa.org/advisory-council) - [Medicare Advisory Council](https://lhc.naifa.org/mc-advisory-council) - Advocacy - [Limited and Extended Care Planning Legislative Working Group](https://lhc.naifa.org/legislative-working-group) - [Medicare Legislative Working Group](https://lhc.naifa.org/medicare-legislative-working-group) - [Advocacy Action Center](https://advocacy.naifa.org/news) - Events - [Inside the New NAIFA Medicare Collective Working Group webinar recording](https://vimeo.com/1211793994/19889c51bc?share=copy&fl=sv&fe=ci) - [Medicare Collective Impact Day 2026 Recording](https://belong.naifa.org/navigating-disruption-and-market-contraction-in-medicare-business-in-2026-and-beyond) - [Peak 65 Series: Impact Day for Lifetime Healthcare Recording](https://lhc.naifa.org/peak65) - [Limited and Extended Care Planning Archives](https://lhc.naifa.org/archives) - [2025 LECP Impact Day Recording](https://vimeo.com/1138688419/b50a406b29?share=copy&fl=sv&fe=ci) - [LHC Webinars](https://lhc.naifa.org/archives) - Blogs - [Limited and Extended Care Planning Blog](https://lhc.naifa.org/lecpblog) - [Medicare Blog](https://lhc.naifa.org/mcblog) ** ![LHC-header](https://lhc.naifa.org/hs-fs/hubfs/LHC-header.png?width=1920&height=960&name=LHC-header.png) # **Limited and Extended Care Planning Collective** The LECP Collective empowers professionals to network with solution and service providers to share best practices, directly access subject matter experts, research, training and resources; and provide thought leadership so we may continue to address the changing needs of the market. ###### 7 min read # [What the Many Varieties of LTC Insurance Have in Common](https://lhc.naifa.org/lecpblog/what-the-many-varieties-of-ltc-insurance-have-in-common) By [Tom Riekse Jr.](https://lhc.naifa.org/lecpblog/author/tom-riekse-jr) on 12/24/25 5:30 AM ###### Topics: [Long-Term Care Insurance](https://lhc.naifa.org/lecpblog/topic/long-term-care-insurance) [Limited & Extended Care Planning Center](https://lhc.naifa.org/lecpblog/topic/limited-extended-care-planning-center) [Knowledge Centers](https://lhc.naifa.org/lecpblog/topic/knowledge-centers) ![](https://lhc.naifa.org/hubfs/LTCI_122325.webp) Have you heard of non-tax qualified long-term care insurance?  Unless you are an "experienced" LTC Insurance seller you probably haven't.  That's because way back in the 90s when HIPAA (Health Insurance Portability and Accountability Act) was passed it also clarified the tax treatment of LTC Insurance (Section 7702B) - doing things like making the benefit triggers for claims standardized and claims typically received tax-free. Despite the favorable tax treatment, some agents thought that tax-free benefits and | ![Tom Riekse](https://lhc.naifa.org/hs-fs/hubfs/Tom%20Riekse.png?width=176&height=246&name=Tom%20Riekse.png) | | --- | | Tom Riekse, ChFC, CLU, CEBS Managing Director  LTCI Partners |   deductions of "TQ" LTC weren't worth the tradeoff- which in many cases was a "medically necessary" benefit trigger of some non-tax qualified policies.  Having a doctor say someone needed benefits left open a huge opportunity for claim abuse and carriers who decided to focus on non-TQ LTC plans suffered and eventually left the business. The reason I mention this is because is it helpful to have similar tax-treatment for LTC benefits allowing for easier comparisons of products by consumers.  Tax-Qualified LTC Insurance (i.e. 7702B treatment) can be part of Health Insurance (Traditional LTC), Life Insurance (either Hybrid or a Rider) or an annuity (Hybrid Life/LTC). Yes, there are other products that can help pay for care, such as short-term care policies or Life Insurance with Chronic Care Riders acceleration riders.  But to call it "LTC Insurance" it's got to have the tax-qualified benefit.  You can classify LTC Insurance in **five** types of products.  Since all these types of products cover care at home or facilities with the same benefit triggers, selecting which type of product is just a matter of looking at which features are most important to the client and the best way to fund a plan. Here is an example below of current products as of 2025 (subject to state availability) and how the different plans work: | Product Type |  Traditional LTC  |  Linked Life + LTC  | Performance Life + LTC | Annuity + LTC | Life + LTC Rider | | --- | --- | --- | --- | --- | --- | | Example Carrier | Mutual of Omaha  | Nationwide | John Hancock | Global Atlantic | Securian Financial | | Product Name | Secure Solution | CareMatters | LifeCare | ForeCare | Eclipse Protector II  | | Chassis | Health Insurance | Life Insurance | Indexed Universal Life | Fixed Annuity | Indexed Universal Life | | Premiums | Annual premiums | Single Pay up to Pay to 100. Guaranteed premiums | Single Pay, 5-Pay, 10-Pay, 15-Pay Guaranteed Premiums | Single Premium | Annual Premiums | | 7702b Tax Treatment for tax-free benefits | Yes | Yes | Yes | Yes | Yes | | LTC Benefits | Reimbursement for Home and Facility Care. | Cash Benefit through Acceleration of Benefits and Extension of Benefit Rider. | Reimbursement or Cash Benefit through Acceleration of Benefits and Extension of Benefits | Reimbursement up to 2 or 3 times initial premium | Acceleration of Death Benefit paid over 2, 4 or 6 years | | Death Benefit | Return of Premium upon death Optional | Yes, does not increase over time | Yes, will increase over time with cash value | Remaining policy value gain taxable to heirs | Can be level or increasing | | Cash Value | None | Yes | Yes, designed to increase over time with Index Performance | Yes, increased at fixed interest rate | Yes, increased based on index performance | | Automatic Inflation protection of LTC Benefits | Optional, typically 3% compound | Optional, typically 3% compound | LTC Benefit will grow at varying amounts due to performance of index | LTC Pool will grow with account value | No, LTC Pool will be paid from Death Benefit |   All of these products offer tax qualified LTC Insurance, but some offer more than just LTC - such as investment growth and life benefits.  Here are some considerations and questions to ask when looking at these product types: | Questions to Ask | Type of product to consider | | --- | --- | | Is the primary need LTC coverage and death benefit and cash values aren't as important? | -Traditional LTC -Linked Life + LTC | | Is the client younger with Life Insurance, retirement accumulation and LTC needs? | -Performance LTC products | | Is the primary need Life Insurance but LTC also important? | Life + LTC Rider | | Is the client interested in a 1035 exchange from a non-qualified annuity to fund tax-free LTC Benefits? | Annuity + LTC | | Are premiums being paid by a business for tax deductibility? | -Traditional LTC -Linked Life + LTC | These are just some considerations when making a recommendation. Be open minded to different creative ways to help pay for care. ***Tom Riekse, ChFC, CLU, CEBS** is the Managing Director of LTCI Partners, one of the largest national distributors focused on long term-care planning. LTCI Partners works with financial advisors, benefit brokers, associations and anyone else interested in helping protect people against the devastating financial impact of a long-term care event.*   *This content originally was posted by LTCI Partners and is reprinted with permission. * *[https://www.ltcipartners.com/blog/what-the-many-varieties-of-ltc-insurance-have-in-common](https://www.ltcipartners.com/blog/what-the-many-varieties-of-ltc-insurance-have-in-common) * - [Tweet](https://twitter.com/share) # TOPIC LIST : - [Limited & Extended Care Planning Center (81)](https://lhc.naifa.org/lecpblog/tag/limited-extended-care-planning-center) - [Long-Term Care (81)](https://lhc.naifa.org/lecpblog/tag/long-term-care) - [Knowledge Centers (25)](https://lhc.naifa.org/lecpblog/tag/knowledge-centers) - [Long-Term Care Insurance (21)](https://lhc.naifa.org/lecpblog/tag/long-term-care-insurance) - [Extended Care (19)](https://lhc.naifa.org/lecpblog/tag/extended-care) - [Potential Partners for Advisors (17)](https://lhc.naifa.org/lecpblog/tag/potential-partners-for-advisors) - 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