Long-term care insurance policy means a disability insurance policy or certificate advertised, marketed, offered, or designed primarily to provide coverage for care that is provided in your home or in an institutional or community-based setting. The care must be convalescent or custodial care or care for a chronic condition or terminal illness.

Long-term care insurance policy does not include a medicare supplement policy or medicare replacement policy or a continuing care contract. Continuing care contract means a contract which provides nursing services, medical services, or personal care services, in addition to food, shelter, and laundry services, for the duration of a persons life or for a term in excess of one year, conditioned upon any of the following payments: An entrance fee in excess of $10,000. Providing for the transfer of at least $10,000 (if the amount is expressed in dollars) or 50% of the persons estate (if the amount is expressed as a percentage of the persons estate) to the service provider upon the persons death.

If you paid long-term care insurance costs during 2005 for a policy which covers you or your spouse, a worksheet must be completed to determine the amount of your subtraction.

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