What is IRC 7702B Tax Qualified Long-Term Care Insurance?

In this episode of Finishing Well, Hans Scheil and host Robby Dilmore unpack one of the most misunderstood aspects of long-term care planning: tax-qualified long-term care insurance under IRS Code 7702B. While the topic may sound technical, the conversation reveals how these IRS guidelines were actually designed to protect families by ensuring long-term care benefits can be received tax-free when they're needed most. Hans explains the simple but critical qualifications for filing a long-term care claim, walks through the six Activities of Daily Living, and shares practical insights from helping his own mother navigate Alzheimer's care. The discussion also explores the differences between traditional tax-qualified long-term care policies, hybrid policies, and life insurance with chronic illness riders (101G), helping listeners understand which solutions may best fit their family's needs. Visit cardinalguide.com to access free retirement resources, browse our complete library of episodes, and connect with the Finishing Well ministry. Together, we're helping people honor God by finishing well.