Monday, April 7, 2014

An Example of how a Long-Term Care Insurance Partnership Policy Works

Here’s an example of how a Partnership Policy can help protect assets.

A widowed 70-year-old woman purchases a Partnership Policy, with a policy benefit equal to $150,000. A few weeks after the coverage has been in place, she is in a severe car accident. Once she is released from the hospital and rehab, she still needs assistance doing activities of daily living, such as dressing and bathing. Her impairment is significant, and so she is transferred to a nursing facility down the street. Over the next year to two, she goes through the $150,000 in policy benefits. In order to qualify for Medicaid, she would normally have to spend-down all her countable asset limits to $2,000. However, because she has a Partnership Policy, she is able to qualify for Medicaid while keeping $152,000 of countable assets in her own name. This gives her peace-of-mind in two ways. She knows that, were she to be able to recover some of all of her function, she would have money behind her, and could possibly return the community. Alternately, she is happy to know that she can leave her children or favorite charity an inheritance worth $150,000.

To learn more about the long-term care insurance partnership program in your state visit  

Wednesday, March 19, 2014

Why Purchase Long Term Care Insurance

Long-term care insurance protects your retirement and maintains your family’s well-being, allowing you to chose where and how you receive the care you need.

Without a Partnership Policy, individuals have these typical options to pay for Long-Term Care:
Can quickly wipe out savings.

• Transfer assets
Medicaid planning may allow you to qualify for Medicaid quicker than spending down assets on your care. Downsides of Medicaid planning include the loss of control of your assets.

Rely on the charity of friends and family
Most people prefer the independence offered by paying their own way or having long-term care insurance. A Partnership Policy offers an extra level of protection against losing life savings to pay for the cost of care.

According to America’s Health Insurance Plans (AHIP ), informal\ caregivers, such as family andfriends, provide about 70 percent of all long-term care. You should discuss with your spouse, children or friends what assistance they would provide if you became sick or injured and needed care.
There are many combinations of benefits available for long-term care insurance, and many types of policies.
Here are some helpful important terms.
Reimbursement - Most common policy type. Your policy or certificate will pay benefits after you receive and pay for eligible services. For ongoing care that regularly exceeds your policy benefit, such as nursing home care, arrangements can often be made to have the insurer pay the provider directly. The coverage pays for the lesser of the expense you incurred or the dollar limit of your policy.

Indemnity Policy - The benefits are paid on this policy without regard to the actual amount of the expense incurred. Instead, the insurance company decides if you are eligible for benefits and if the services you receive and paid for are covered under the policy. Once you have paid any amount for services covered in the policy, the insurance company pays the full daily benefit to you directly.

Tuesday, February 25, 2014

Long Term Care Insurance Partnership Program FAQ's

Below are some FAQ's in regards to those who are interested in purchasing a long-term care Partnership Policy or may already own a traditional policy and want to convert it.

Q. Are both long-term care insurance policies and certificated eligible to be in the Partnership Program?

A. Yes, both policies and certificates are eligible to be in the Partnership Program. The difference between a policy and a certificate is simple. A policy is an individual contract issued by an insurance company in the state in which it is bought. A certificate describes a group of coverage for an insured under a master policy, which may or may not have been issued in the state where the policyholder lives. Read your policy or certificate, or contact the Division of Insurance to find out if the coverage that you have gives you Partnership Protection.

Q. What if I already have a long-term care insurance policy or certificate and want to change the policy or certificate to a Partnership policy or certificate?

A. Contact your insurance company to inquire if you are eligible for an exchange to a long-term care Partnership Policy for certificate.

Q. Can a Partnership Policy or certificate be cancelled by the insurance company?

A. Long-term care insurance policies or certificates, including Partnership Policies or certificates, may not be cancelled by the insurance company when the premiums are being paid on time.

To learn more about long-term care insurance Partnership programs visit

Friday, February 7, 2014

What Long-Term Care Services Medicare Covers

One of the biggest misconceptions about Medicare is that it will pay for one's long-term care costs. This is not true, in fact Medicare covers very little of the costs for long-term care services and it is largely restricted to specific illnesses or injuries and only pays for benefits for a short period of time. For example if you enter a nursing home for a stroke or a broken bone, Medicare should cover these costs. However, Medicare does not provide coverage for those who enter a nursing home for an indefinite amount of time because they are disabled or no longer able to care for themselves. Nor, does Medicare cover assisted living care or adult daycare.

Medicare will help pay for one's recovery in skilled nursing care facility for up to 100 days, after a three day hospital stay. Medicare will also pay for some home health care if needed because of an of an illness or injury and your doctor says that you need short-term care. Medicare will pay for nurses and therapists for typically no more than 35 hours per week in the home.

As you can see, Medicare is not for the long-term, rather it will cover some short-term care. For more information visit -

Tuesday, February 4, 2014

5 Reasons People Need Long-Term Care Insurance

Planning for long-term care is something that everyone should and needs to think about, whether or not long-term care insurance is the option for them it is still advisable to at least plan for it and know what your options are. Here are five reasons that people do need long-term care insurance:

1. The costs of long-term care services are very expensive - The average cost of a semi-private nursing home room and board is more than $76,000 per year. Homemaker services  can cost more than the average $36,000 per year.

2. Most people do not have enough money saved - Most people do not take long-term care costs into consideration when planning for retirement and the time comes that they need long-term care services they have to self insure, meaning if there are assets to protect they may have to liquidate their assets.

3. Most people think they have coverage, when in fact they do not - Many people do believe that their health insurance and Medicare will cover their long-term care services - health insurance does not cover these services and Medicare will only pay a limited amount of skilled long-term care.

4. Most people do not want to be a burden to their families - Being a caregiver can put a lot of strain on a family member, from having to quite their jobs, giving up a promotion, physically incapable of caring for the loved one,  taking time away from the caregivers families/children, etc.

5. People of all ages could need long-term care services - People at any age can suffer a prolonged illness requiring them to need long-term care services.

For further information on how you can start planning for your long-term care future visit

Friday, January 24, 2014

What is a Good Age to Buy Long-Term Care Insurance?

Long-term care insurance premiums are based on your age when you purchase the policy, therefore the younger you are when you enroll for long-term care insurance the cheaper your premiums will be. People who purchase in their 40's and 50's can have the advantage of selecting a rich plan design for a fraction of the cost you would pay if you were to wait until later to buy. Generally, the younger you are the more healthier you are as well, therefore, you might be able to qualify for a Preferred Discount, which is usually about a 10 or 15% discount off your premiums. In addition, as people grow older they have a greater chance of developing a serious health condition that may prevent you from being insurable for long-term care insurance coverage.

Many people think that why pay into something for so long, when it will be years and years before you may actually need the coverage. Well, because you could actually need LTC insurance before "old age" strikes. The chances of needing long-term care before the age of 65 are close to 40%.

If you are financially secure and have assets to protect, it is best to plan ahead!

Wednesday, January 15, 2014

About the Long Term Care Insurance Partnership Programs

The Long-Term Care Insurance Partnership Program was developed in the 1980's to help encourage people to purchase long-term care insurance instead of turning to Medicaid. People who purchase Partnership policies deplete their insurance benefits they can then retain a certain amount of assets and still qualify for Medicaid. Until recently there were only 4 states that participated in the Long-Term Care Insurance Partnership Programs these states are: California, Connecticut, Indiana, and New York.

The Deficit Reduction Act of 2005 (DRA 2005) now allows all states to participate in the Partnership Program. Partnership policies in these new Partnership states much meet certain criteria's such as federal tax-qualifications, identified consumer protections, and inflation protection. Compound Inflation protection will be required for the people under the age of 61 and some level of inflation protection will be required for people between 61 and 75. Currently there are over 30 states that offer Partnership policy's.

When a state has reached its final regulations issued by the specific states Department of Insurance and has been allowed to launch the states Long-Term Care Insurance Partnership Program, that state will be added to this website.