Hybric Products for Business Owners

[FindaWay]

Are there any tax advantages for business owners when they purchase these single pay hybrid products like TLC or Moneyguard?

 

[ltcadviser]

No, there are not any tax advantages for business owners, nor are there any state Partnership benefits. Hybrid products are treated by the IRC as either life insurance products or annuity products.

 

[TriciaS]

I don't know all the nitty gritty details, but there is no tax advantage at purchase, but there is a way to structure the policy so that the business owns it, receives any LTC benefits (tax free) then "pays" the employee's care and can deduct that. Lincoln has been promoting that, you can get more specifics from their advanced markets. Just an outside the box thought. I realize you were probably looking for an up front deduction.