State Partnership Plan
A 64 year old woman wanted to look into limiting the financial risk of a long term care situation. She was worried she was too old and her husband was already uninsurable. She does have the income to pay to pay for a plan but did not have a lot of extra assets to set aside. We found a traditional plan for $300 a month that will give her an initial benefit amount of $150,000 that she can access at a rate of $200 per day. The policy will grow at a rate of 3% per year so in twenty years, she will have over $270,000 of benefit that she can access at a rate of $361 per day for long –term care needs.
Now the biggest benefit of this policy is the fact that it is State Partnership qualified. Meaning that if the insured ended up in a long term care situation and spent through her whole long-term care policy; she would then be able to qualify for Medicaid and protect a dollar of her assets for each dollar the insurance company paid on her behalf. This gives her and extra level of protection and assures she will never have to spend down all her assets if she needs additional care.
To summarize, this plan gives her the peace of mind to know that she will not have to sell off her house or other assets if she ends up in a long-term care situation AND if her care extends beyond the length of the policy, she will be able to protect assets from Medicaid Spend Down requirements.
Also, this policy also has a cash or indemnity benefit which gives the client more choices on how she accesses her pool of money for long-term care. Let us know if you would like more information on how these policies work.