A 48 year old mother of two who currently has a family member in a long-term care situation was looking for a way to protect herself and her children in case something happens to her. She is still working and has access to a Health Savings Account (HSA) through work so we looked into a traditional State Partnership plan with a monthly payment of $221.70.
Here is how her plan is set up:
The client will start with $146,000 initial benefit that she can access at a rate of $200 per day or a total of $6000 per month. She has a zero day waiting period for home care and a 90-day waiting period if she goes straight into a facility. The plan has an inflation rider added so her policy will grow over time at a 3% compounding rate. The plan will provide her with the following coverage:
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Note: This plan will allow her to pay the monthly premium through her HSA which allows her to pay this with pre-tax dollars. We also put a Shortened Benefit Rider on this policy which means if she stops paying the plan in the future, she will still receive a benefit. This was done to add flexibility as the client has a goal of moving over to an Asset Based long-term care plan after she gets her children through college which would eliminate the ongoing payments. This plan will allow her to have coverage in place in the mean time but also allow her the ability to move to a new program in the future without losing her premiums. Also, this plan was placed with one of the companies who have never raised rates on their existing clients so she will have some assurance that payments will not increase.
Although this is a smaller policy it does a couple of things for her. It gives her coverage immediately, keeps a plan in place in case she can’t add coverage later and gives her the flexibility of moving to an Asset Based plan when her financial situation changes without losing the money she puts into the plan today. This was a great solution that fits with her financial situation today.