What Is A Tax Qualified Long Term Care Insurance? 
Tax-qualified long-term care insurance -LRB- TQ -RRB- pays out a benefit to qualifying insureds that is not taxable as ordinary income . Virtually all long-term care insurance policies sold today are TQ . But , some carriers still sell policies that are non-tax qualified -LRB- NTQ -RRB- because such a policy does not come under the same regulation as a TQ policy . The argument by some is that with an NTQ policy it is easier for the insured to qualify for the payment of long-term care costs . The language of the NTQ policy may also be more generous with regard to benefits , features , and riders . Whether those factors would be worth the possible taxation of the benefits is debatable . 