Long Term Care Insurance in 457(b) Plan of Govt'l Employer

[Guest aciepluch]

As long as I'm at it (see previous post), does anyone have any thoughts on allowing participants to direct investment of their 457(b) plan accounts in in long-term care insurance? I am aware of the PPA of 2006 provision allowing certain public employees to escape taxation on distributions of up to $3,000 to purchase long term care insurance, but here I'm talking about purchase of such policies inside the plan.

Issues that come to my mind are whether long term care insurance is an investment and valuation of the policy upon distribution.

Any thoughts/insights would be greatly appreciated.