[LTPC-discussions] Tax Qualified vs. Non TQ

Wed, 16 Jul 2003 11:10:59 EDT

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Having worked with Penn life in Wisconsin TQ vs NTQ was a big topic. We 
offered a NTQ that had looser triggers that the TQ so we used that as a selling 
point for folks that were shopping around.

To the best of my memory on their comp. plan you only needed to be unable to 
perform 1 ADL to trigger  Home Health Care benefits and both parts, facility 
and HHC had "Doctor deems neccessary" as a trigger. And the cognitive 
imparement definition was diagnosed with a cognitive impairment as apposed to unsafe 
due to severe cognitivve impairment which is a TQ standard. As far as I know 
each NTQ is different depending on the carrier.

The big question being what's taxable. As of right now both plans can be 
written off up to specific age guidlines. And benifits are not taxable for either. 
Penn Life (and at least one of LTPC's products, which I could never get a 
straight answer from LTPC on) offer a certificate with the NTQ that states in the 
event legislation is passed the would make NTQ benefits taxable the client 
could choose to switch to a TQ and offen their premiums would decrease. At Penn 
Life the NTQ was slightly more expensive than the TQ.

I hope this information is usefull.

Best regards,
Louie Soeder

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<HTML><FONT FACE=3Darial,helvetica><FONT  SIZE=3D2 FAMILY=3D"SANSSERIF" FACE=
=3D"Arial" LANG=3D"0">Having worked with Penn life in Wisconsin TQ vs NTQ wa=
s a big topic. We offered a NTQ that had looser triggers that the TQ so we u=
sed that as a selling point for folks that were shopping around.<BR>
<BR>
To the best of my memory on their comp. plan you only needed to be unable to=
 perform 1 ADL to trigger&nbsp; Home Health Care benefits and both parts, fa=
cility and HHC had "Doctor deems neccessary" as a trigger. And the cognitive=
 imparement definition was diagnosed with a cognitive impairment as apposed=20=
to unsafe due to severe cognitivve impairment which is a TQ standard. As far=
 as I know each NTQ is different depending on the carrier.<BR>
<BR>
The big question being what's taxable. As of right now both plans can be wri=
tten off up to specific age guidlines. And benifits are not taxable for eith=
er. Penn Life (and at least one of LTPC's products, which I could never get=20=
a straight answer from LTPC on) offer a certificate with the NTQ that states=
 in the event legislation is passed the would make NTQ benefits taxable the=20=
client could choose to switch to a TQ and offen their premiums would decreas=
e. At Penn Life the NTQ was slightly more expensive than the TQ.<BR>
<BR>
I hope this information is usefull.<BR>
<BR>
Best regards,<BR>
Louie Soeder<BR>
</FONT></HTML>
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