Q&A – Tax Treatment of Benefits

Question: What is the tax treatment of  LTC Benefits paid from Asset-Care or Annuity Care?

Answer: Our Care Solutions portfolio functions on a reimbursement basis.  Since Reimbursement Benefits for qualified LTC services are not taxed, benefits are tax-free.

As a side note, Per Diem or Indemnity Benefits are not taxed except those benefits that exceed the greater of Total Qualified LTC Services charged or $370 (2019)