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Re: Tax Qualified v Non-Tax Qualified

Posted by Matt McCann on November 09, 2002 at 17:58:17:

In Reply to: Tax Qualified v Non-Tax Qualified posted by Ernie Leuenberger on November 04, 2002 at 17:20:49:

I have heard and interpret that the qualification for benefits seem less stringent than TQ Plans in some policies outline of coverage. Are there any other good reasons for selecting Non-TQ Plans?
: Is the degree of ease in qualifying, when the time arrives for Home care worth the extra premiums?

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NTQ plans can differ ... some will trigger on 1 of 6 ADL's (instead of 2 of 6 or 2 of 5) While that sounds like it could trigger faster, in reality it would only allow a very small percentage of "extra" claims. Chances are if you cannot perform 1 ADL (ADL=activieties of daily living ... bathing, dressing, toileting, eating, continence and transferring) you most likely can't do another one. In talking with doctors "and I have lots of MD's as clients) they agree. Plus, who is to stay you have or don't have a continence problem?

In some other NTQ policies they will allow claim for "medically necessary," but as talked about on this board before, why would a doctor say you need LTC ... if you can't perform ADL;s or need supervisory attention due to a memory problem ... which is the normal trigger for TQ policy. Yes, there can be situations which a MD could say you need LTC, but not too many.

Finally, in a TQ policy, federal law describes long-term care as something that is expected to last at least 90 days (not to be confused with elimination period). It does not have to last 90 days, but the health care provide expects it to last 90 days or more. In a NTQ policy you will not find the 90 day cert.

With existing and future tax legislation, its not worth it to go NTQ. Plus, many companies no longer offer and some O&E policies that agents carry will not allow them not sell NTQ (because of the chance of law suits at time of claim).

Some companies that sell NTQ allow you to change over to TQ (and visa-versa), if you elect a NTQ policy, then I would say make sure to can convert to TQ in the future.

Follow Ups:

Re: Tax Qualified v Non-Tax Qualified : I have heard and interpret that the qualification for benefits seem less stringent than TQ Plans in some policies outline of coverage. Are there any other good reasons for selecting Non-TQ Plans? : : Is the degree of ease in qualifying, when the time arrives for Home care worth the extra premiums? : --------------------------- : NTQ plans can differ ... some will trigger on 1 of 6 ADL's (instead of 2 of 6 or 2 of 5) While that sounds like it could trigger faster, in reality it would only allow a very small percentage of "extra" claims. Chances are if you cannot perform 1 ADL (ADL=activieties of daily living ... bathing, dressing, toileting, eating, continence and transferring) you most likely can't do another one. In talking with doctors "and I have lots of MD's as clients) they agree. Plus, who is to stay you have or don't have a continence problem? : In some other NTQ policies they will allow claim for "medically necessary," but as talked about on this board before, why would a doctor say you need LTC ... if you can't perform ADL;s or need supervisory attention due to a memory problem ... which is the normal trigger for TQ policy. Yes, there can be situations which a MD could say you need LTC, but not too many. : Finally, in a TQ policy, federal law describes long-term care as something that is expected to last at least 90 days (not to be confused with elimination period). It does not have to last 90 days, but the health care provide expects it to last 90 days or more. In a NTQ policy you will not find the 90 day cert. : With existing and future tax legislation, its not worth it to go NTQ. Plus, many companies no longer offer and some O&E policies that agents carry will not allow them not sell NTQ (because of the chance of law suits at time of claim). : Some companies that sell NTQ allow you to change over to TQ (and visa-versa), if you elect a NTQ policy, then I would say make sure to can convert to TQ in the future.

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