Long Term Care Insurance is a product that has evolved over time. When first marketed and sold it was more of a rider, or supplemental policy than a full coverage product. Since that time it has grown into a complex product that also has tax implications as well. Because the product has been somewhat different in nature over time, and the tax codes are always evolving you want to be sure of the tax ramifications of the particular policy you may have.
Whether you need to pay taxes on the benefits, and whether you need to report benefits on your tax return, even if non taxable are all things you should consider. The best place to get answers for this is to consult with an accountant or tax attorney.
Here is some discussion pertaining to tax at ion of insurance benefits and that may effect you.