Which of the following is NOT a necessary qualification for a Long Term Care insurance plan to be deductible?

The correct answer highlights a significant aspect of tax-deductible Long Term Care insurance. For a Long Term Care insurance plan to be deductible, it does not have to be state-approved. This means that even if the policy has not been formally recognized or authorized by the regulatory bodies in the state, the taxpayer may still claim deductions for premiums paid on the policy, provided other criteria are met.

In contrast, the other qualifications directly affect the deductibility of premiums. Policies typically need to have a waiting period; this measure helps establish that the coverage is intended for long-term care rather than short-term needs. Additionally, only premiums from plans that meet specific qualifications are eligible for deductions, ensuring that taxpayers are incentivized to invest in genuine long-term care solutions. Furthermore, there are limits on how much of the premiums can be recognized for deductions, which aligns with IRS regulations designed to manage deductions fairly and systematically.

This context underscores why state approval is not a necessary criterion for deduction, while the other factors do represent important requirements intended to ensure that only qualified policies are deductible.