1. A Maryland resident may claim a one-time State income tax credit for long-term care premiums paid for an eligible insured of up to:

$500 per insured

The credit equals 100% of eligible LTC premiums up to $500 per insured, may be claimed only once for each insured, and is not available if the insured had LTC coverage before July 1, 2000.

2. A Maryland employer that provides long-term care insurance as an employee benefit may claim a State tax credit equal to 5% of its costs, up to the lesser of $5,000 or:

$100 per covered employee

The employer credit is 5% of costs to provide LTC insurance, capped at the lesser of $5,000 or $100 per Maryland employee covered.

3. Life insurance death benefits paid to a named beneficiary in a lump sum are generally:

Received income-tax-free

Lump-sum death benefits are generally received free of federal income tax by the beneficiary.

4. The growth of cash value inside a permanent life insurance policy is generally:

Tax-deferred while it remains in the policy

Cash value grows tax-deferred; a taxable gain may arise only if the policy is surrendered for more than its cost basis.