I work for the State of California. If I buy CalPERS Long Term Care Insurance: 1) Will that be deducted pre-tax (so that my final gross income on my paycheck is smaller); and 2) If I die before I use it up, can my children get a cash out- my premium payments?

The answer to the first question is “no”. The only way you can pay long-term care insurance with pre-tax dollars is with a Health Savings Account. The second answer is yes under certain conditions. You have to choose the return of premium option when you buy a regular or California Partnership CalPers plan. It doesn’t cost much at all because you have to die before age 75 for any premiums to be returned to your children. Then it is a graded amount. It starts at 100% if you are 65 or under on the coverage anniversary before your death. It grades down to zero by age 75. You can see the definition by going to this link and clicking on Outline of Coverage at the bottom of the page. https://www.calperslongtermcare.com/Home/OptionalBenefits