Why Partnership Long Term Care Insurance a Practical Policy Option
The government is not retreating its efforts to further provide the public with the chance of getting a better life in the future through the acquisition of an LTC insurance plan. But since such policies are kind of expensive, many residents are hesitant and doubtful of buying it. Thus, the idea of a Partnership long term care insurance program was created.
This LTC program was developed through the joint effort of the government and some private insurance providers in the country. It aims to provide the citizens with a cheaper alternative that would hopefully boost and increase the number of LTC insurance policyholders in the country.
Aside from this goal, it also intends to lessen the LTC-related expenses of Medicaid, which amounts to almost billions of dollars every year, and focus more on the other matters that also need attention and government’s fund.
Partnership policies offer lower and cheaper monthly premiums so that more residents can have the opportunity to enjoy and experience the benefits of owning an LTC insurance plan. It also has more lenient guidelines and requirements to accommodate more applicants and possible policyholders, even those who are considered average income earners and those who belong below the poverty level.
Although considered cheaper than the usual LTC insurance policies, Partnership plans offer two ore additional and unique features that can only be availed when the person acquires his LTC Partnership insurance policy. These features are the so-called Dollar-for-Dollar asset protection and reciprocity standards.
The Dollar-for-Dollar asset protection feature of a Partnership long term care insurance plan lets the insured person to keep a portion of his assets for every dollar that his Partnership plan would pay out in benefits. This may also give the policy owner bigger chances of being qualified to receive Medicaid benefits, provided that he meets the requirements set by them.
On the other hand, the reciprocity standards allow the insured individual to transfer or move to another state without the need of purchasing another LTC insurance policy. His Partnership plan from his previous state will still be valid and still can be used to receive his benefits as long as the state that he transferred to participates in the reciprocity agreement set by all the states that offer Partnership insurance plans.
One more important thing to note with this kind of policy is the level of inflation protection that it will give to a certain insured individual. Usually, the levels of inflation protection are based on the age of the person at the time of his policy acquisition, and it follows that the younger he was when he purchased his plan, the higher level of inflation protection he would get.
The minimum daily benefit amount and benefit coverage period must be indicated on the contract of you Partnership plan because without these two, together with the inflation protection, one’s plan is considered invalid and cannot be used by the policy owner.
The Partnership long term care insurance program is a mandated provision of the Deficit Reduction Act (DRA) of 2005 that tasks the states in the country to come up and adapt a policy option that would cater to the financial capacities of the majority of its residents so that they can avail and own an LTC plan.
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