We have a great White Paper about this exact question.
CI Riders are classified under IRC 101(g) and cannot be marketed as true LTC.
LTC Riders are classified under IRC 7702B as Qualified Long Term Care insurance.
Generally speaking, if your clients are looking to do Long Term Care planning, we suggest LTC Riders over CI riders.
The White Paper goes into greater detail about what this means to your client and how it would affect them/their policy.
Don’t forget, Algren has access to some of the best and brightest in the industry, so dig deep with these questions and let’s all learn together!
Please remember that the answers given here are intended for general educational purposes only. Algren Associates does not provide tax or legal advice.