Partnership Long Term Care Insurance

Similar to a standard long term care insurance policy, a partnership LTCi policy will cover your long term care expenses and in addition protect your assets in the face of medical expenses over and above the care cost with a lifetime asset protection clause. Currently, the California Partnership for long term care insurance ( http://www.dhs.ca.gov/cpltc/ ) is the only product in this area.

For each dollar paid out by the policy towards care costs, the policy holder is entitled to a dollar towards keeping your assets, in case you need to apply for Medi-Cal services. This means that if your medical expenses go above what is covered by your LTCi policy, and you apply for Medi-Cal, the matching dollars provided by the partnership LTCi will go towards protecting your assets against Medi-Cal ‘spend down’ rules, under which you would have had to dispose off your assets first, and then, if still in need of funds, the Medi-Cal would kick in. Thus, by opting for partnership LTCi, you can safeguard your assets and avail of Medi-Cal services to pay for care costs which exceed the LTC coverage.

Partnership LTCi policies cost about the same as other similar policies, but it is the only one which offers asset protection, which otherwise would require you to buy a separate policy with additional premiums. LTCi policy premiums are generally lower if purchased when you are young. Protected asset values start from $47,000 and upwards to whatever your needs are.

Two types of partnership LTCi policies are available, facility only which covers LTC in a nursing home or residential care facility, and the comprehensive policy, which covers care at home, in the community as well as nursing homes and residential care centers. The time period and coverage can be selected by the policy holder as per needs, from a year, to five years, to a full lifetime cover. All partnership policies generally include the following:

• Inflation adjustments to ensure that increased costs are matched by additional benefits.
• Once in a lifetime deductible.
• Personal care coordinator to help secure and mange required care.
• Premium waivers while the policy holder is entered into a care facility.
• Flexible care benefits which can be matched as per policy holders requirements.

Tax issues related to long term care insurance, care costs and medical expenses are discussed in related articles ( see below ). You are advised to consult with your financial planner to make sure you select the right LTCi policy which caters to your care needs, offers maximum benefits and falls within your premium payment capacity.