Partnership Ltci Benefits

Any type of long term care insurance (LTCI) policy is worth having than not having one at all. Of all the LTCI products available in the market, however, its the long term care insurance partnership policy that has the most benefits to offer.

Aside from full long term care (LTC) coverage, the owner of an LTCI policy which has complied with the requirements of the partnership program can acquire additional care from Medicaid without spending down his assets should his insurance benefits be wiped out by LTC costs.

Only LTCI policies under the partnership program bear the Medicaid Asset Protection feature. That being the case, anybody who owns a partnership policy can protect a portion of his assets with a total amount that is equivalent to the benefits that he has received from his insurance policy.

For example, a 37-year-old woman purchased a comprehensive LTCI policy with a maximum benefit amount of $200,000. She saw to it that it had a minimum daily benefit of $200, a minimum benefit period of three years and a 5% compound annual inflation protection so that it will qualify for the partnership program.

Thirty years later at the age of 67, an event triggered the womans need for LTC and her condition instantly required nursing home care. Due to the expensive daily rate of the nursing home that she was admitted into, all her insurance benefits were wiped out before she has even made it into the third year.

In this case, she can apply to Medicaid and receive ongoing care without spending down her personal assets that is equivalent to $200,000, as this is the total amount of benefits that she has received from her LTCI policy.

Long Term Care Insurance Partnership

By studying the nature of a partnership-qualified LTCI policy, you will realize that apart from enjoying full healthcare coverage and asset protection you can also save a chunk of your money on annual premium.

Buyers of this type of LTCI policy can settle for a shorter benefit period because once they have depleted their insurance benefits they can turn to Medicaid for assistance and ongoing care. About 75% of LTCI buyers believe a partnership qualified policy with a shorter benefit period is worth putting their money into than a policy with lifetime coverage.

According to them, nobody can tell when policy premiums will increase. Should their insurer get approval from the state to increase the premiums of a class of policyholders, and if they happen to belong to this class, only God knows if they would still be able to afford their policies.

When planning your long term care, its not enough to only think about what you need but also what you can afford. In fact, no LTCI specialist will advise you to invest all of your money in a policy because part of planning is putting up a nest egg and strengthening it.

Without personal funds and properties to protect for your loved ones sake, what do you need a long term care insurance partnership policy for?