Page 68 - Other Income for Individuals

Accelerated Death Benefits (5/7)

EXCLUSION FOR CHRONIC ILLNESS
 Exclusion for chronic illness. If the insured is a chronically ill individual who’s not terminally
ill, accelerated death benefits paid on the basis of costs incurred for qualified long-term
care services are fully excludable.
 Accelerated death benefits paid on a per diem or other periodic basis are excludable up to
a limit. For 2020, this limit is $380. It applies to the total of the accelerated death benefits
and any periodic payments received from long-term care insurance contracts.
 For information on the limit and the definitions of chronically ill individual, qualified long-
term care services, and long-term care insurance contracts, see Long-Term Care Insurance
STEP 01 Contracts under Sickness and Injury Benefits in Pub. 525.

STEP 02 STEP 03 CHRONIC STEP 05

STEP 06

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