Disability Income • Critical Illness Insurance • Long Term Care • Life Insurance

Long Term Care insurance Partnership

Does your state participate?

How it Works

Participating states encourage their residents to purchase a qualifying LTC Partnership policy and in turn this insured individual is able to gain access to Medicaid under special eligibility rules.

This can be very important to the insured individual, their family and estate. If such an insured individual exhausts all LTC Partnership benefits and still requires care, they may then apply for Medicaid under special eligibility rules.

All benefits paid from the LTC Partnership policy are disregarded for purposes of determining eligibility for Medicaid. Hence, an insured individual may typically keep assets equal to the amount paid by the LTC Partnership policy and these disregarded assets are not used in determining Medicaid eligibility. The protection of assets against potential Medicaid Estate Recovery Rules in the deceased's probate estate may greatly assist the family and estate.

The LTC Partnership designation is reserved for Standalone LTCi Policies approved by your state as a Tax-Qualified LTC Partnership policy, meeting stringent consumer protection standards and offering certain inflation protection options.

If the thought of protecting assets from Medicaid Estate Recovery Rules is appealing, then a Tax-Qualified "Stand-alone" LTCi Partnership Policy approach may be the answer.

If the thought of tying two forms of protection together (Life/LTCi Rider) is appealing, then a Hybrid Life/LTCi Rider may be the answer. NOTE: Hybrid Life/LTCi Rider policies do not qualify for the LTC Partnership designation.

Only a through review of your goals and circumstances will answer these questions.

LTC Partnership policies must adhere to mandated requirements, including:
  1. The LTCi policy must satisfy all requirements of the 2000 NAIC Long Term Care Model Act & Regulation.
  2. The LTCi policy must offer inflation (COLA) protection. Specified age brackets dictate the required COLA benefit options that must be present on the policy issue date.*
  3. The LTCi policy must be Tax-Qualified, as defined by IRC Code Section 7702B.
* Inflation (COLA) Protection Age Requirements
If you are under age 61, you must have Compound Annual Inflation
If age 61 to 76, you must have some level of Inflation (e.g., Compound or Simple)
If age 76 and older, you are not required to have Inflation



LONG TERM CARE MENU
Long Term Care Insurance
Long Term Care National Average Costs
Tax-Qualified "Stand-alone" Long Term Care Insurance
Hybrid Life/Long Term Care Rider Combinations
Plan Design Considerations
Elimination (Waiting) Period
Long Term Care insurance Partnership
Long Term Care Insurance in the Workplace
Paying for Care - Insuring the Risk
Paying for Care - Selling Your Life Policy
Paying for Care - Government and Personal Sources
State Filial Responsibility Laws
Long Term Care Insurance Disclaimers and Notes

There is no fee for my services

Paul SuPrise, CLU, LTCP
770 Nuangola Road • Mountain Top, PA 18707-9507
570-868-6871 • Fax 570-868-6872
paul@sickpayplans.com
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