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.