Insurance
Swapping life insurance or annuities for long term-care policies won’t be taxed. Congress changed the law to allow such tax deferred exchanges after 2009. Also long-term-care insurance can be offered as part of an annuity contract, and no tax is due if the insurance premiums are paid with the annuity’s cash value. Also the cash value in the annuities and life insurance can be used free of tax to purchase long-term-care coverage.