We have all been told by our financial
advisors to look into long-term care insurance to
protect our assets. But, like a lot of things we don’t
want to think about, it gets put off. Nobody wants to
think about getting sick or depending on someone else
to take care of them. But, it is a fact of life.
One used to think that if the unthinkable happened,
the government would be there to step in and help
cover the cost of long-term care. We now know better.
There is no better evidence of this than the creation
of LTCi partnership programs.
The partnership program was originally developed over
25 years ago as a way to encourage those who are
financially able to purchase private LTC insurance to
do so instead of relying on Medicaid. In return, those
policyholders who deplete their insurance benefits may
then retain a specified amount of assets and still
qualify for Medicaid if they meet the other
eligibility requirements. Initially, this program was
only enacted by a few states.
The Deficit Reduction Act of 2005 now allows all
states to create partnership programs. While states
are free to choose to enact this program or not, there
are criteria that each state’s program must contain,
including federal tax-qualification, consumer
protections, and inflation protection provisions.
Compound inflation protection will be required for all
purchasers below age 61. For those between the age of
61 and 75, “some level of inflation protection” will
There are many other options available to you in
customizing your own LTCI partnership policy. If you
are interested in more, no obligation, information
concerning the partnership program in your state or
long-term care insurance in general, please let us
hear from you.
(click underlined states for new booklet)
Many states have
legislation pending to
allow for Partnership
check back often.