How to fund long-term care insurance with a tax-free exchange
Abstract: Long-term care (LTC) insurance is a major expense, especially for someone who purchases it at or after retirement age. One potential source for funding LTC insurance premiums is a total or partial tax-free exchange of an existing life insurance policy or annuity contract. This article explains how a tax-free exchange provides a source of funds for LTC coverage and offers significant tax benefits. A sidebar notes the tax treatment of LTC insurance.