Potential Tax Benefits

American General LTC Insurance is a tax-qualified policy. As a result, if your total medical expenses for the year – including long term care costs and premiums – exceed 7.5 percent of your adjusted gross income, you may be able to deduct a portion of your premium. For specific tax guidance, please consult a tax advisor.

Are long term care insurance benefits taxable by the Internal Revenue Service?

Generally, the benefits paid under tax-qualified long term care insurance policies are excluded from income. Therefore, no federal income tax on benefits received from a qualified long term care policy, which means every dollar received is a dollar that can be used to manage expenses. For specific tax guidance, please consult a tax advisor.