Relief for Premiums under Qualifying Long-Term Care Policies

Section 20 provides for tax relief, similar to that currently available for medical insurance, in respect of premiums on qualifying insurance policies designed to provide cover, in whole or in part, for future care needs of individuals who are unable to perform at least two activities of daily living or are suffering from severe cognitive impairment. The relief will be at the standard rate and will be given under a relief at source system, that is, the subscriber will be able to deduct the relief from the gross premium due. The amount deducted will be refunded by Revenue to the insurer. Benefits payable under a qualifying policy will not be taxable. Qualifying policies, which must be approved by Revenue, may be taken out by an individual in relation to himself or herself, his or her spouse and children and other relatives. Policies must generally be renewable, be standalone and must not provide for a termination lump sum payment or surrender for cash.