Protect Your Assets with a Partnership Plan
Long term care Partnership states offer affordable long term care insurance (LTCI) combined with supplemental Medicaid coverage so that even if you wind up exhausting your benefits, you won’t be left hanging in the air.
Any kind of LTCI policy is better than not having coverage at all. Still it pays to look into other products that will allow you to spend a lesser amount of money for an extensive coverage. Take the Partnership Program, for instance.
Having a partner eases the hardships of life because you know for a fact that wherever you go or whatever decision you make, you are not alone. Using this premise in buying an LTCI policy will lead you to a Partnership-qualified plan.
Policies issued under the Partnership Program operate the same way as other LTCI policies do except that owners of Partnership-qualified policies do not have to spend a chunk of money on their annual premiums. Buyers of this type of LTCI policy can go for a smaller maximum benefit amount and shorter benefit period then in the event that they use up their benefits they can apply for Medicaid coverage without spending down their assets.
Some people who have a substantial amount of money in hand buy a policy with a maximum benefit amount of $500,000 or more, but in the event that they exhaust their benefits down to the last dollar they will be forced to use their personal resources to pay for ongoing care. If they want to apply for Medicaid, then they have to deplete their assets until it is no more than the asset and income requirement of the Medicaid program in their state of residence.
By considering an LTCI policy, which complies with the rules of the Partnership Program in your place, you will be able to receive the amount of care that you actually need without wiping out your nest egg.
Long Term Care Partnership States
The Partnership Program stemmed from the common goal of the government and private insurance companies to get more Americans to plan their long term care (LTC) needs as the country’s cost of care is rising incessantly.
With a Partnership certified LTCI policy, an individual who applies for Medicaid coverage after having exhausted his insurance benefits will be able to exempt or preserve the total amount of his assets that is equivalent to the amount of benefits which his policy has paid out to him.
For example, your Partnership LTCI policy stipulates a maximum benefit amount of $350,000 for a benefit period of three years. After using up the entire $350,000, you can apply for supplemental coverage from Medicaid and preserve your assets that have a value of $350,000.
Your objective in buying an LTCI policy should not necessarily be to receive a very high daily or monthly benefit amount. You simply have to secure a plan that will suit your future health care needs and won’t eat up your assets through annual payments.
Contact your LTCI representative to learn more about the guidelines of long term care Partnership states.
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