Every insurance company must file its products and pricing with each state's insurance department before being allowed to market its product. No individual agent, agency, or advisor can offer special deals with Long-Term Care Insurance.
Federal regulations offer essential consumer protections and uniformity between plans, including the triggers required to receive benefits. There are key differences, however. These differences include:
- Pricing: Premiums can vary over 100% between insurance companies for the same benefits.
- Underwriting: Each insurance company has its own underwriting standards, and those rules can vary between insurance companies.
- Available Options: There are various options, known as 'riders,' that are available to add to a policy. Many of these options are common between companies. Still, each company may have unique features and options unavailable with other companies.
What is not the same are the insurance agents or financial advisors that offer these products. There are very few Long-Term Care Insurance specialists nationwide that focus their attention on long-term health care solutions.
No, most of the time long-term care insurance is very affordable. However, it can be more expensive if you are older or have major health issues. In general, long-term care insurance is affordable, and that affordability depends on your age, health and policy design.
The larger the benefit purchased, the bigger the asset protection. But here's something to consider: Even a small policy can provide asset protection, especially in a partnership state. Don't make the mistake of walking away from coverage just because you can't afford a huge policy. A Long-Term Care Insurance Specialist like Linda Weyer can share with you the appropriate coverage based on your situation and illustrate how a small plan can provide you with your choice of quality caregivers, asset protection, and a reduction in family burden.
Remember, many plans include case management. This is a huge resource that, at claim time, can help you and your family find caregivers and make arrangements for your care.
Here are some key variables to cost:
- Age
- Health
- Spousal/Co-Habitation Status
- Amount of Monthly or Daily Benefit
- Benefit Pool or Benefit Period Amount
- Inflation (either a specific guaranteed percentage every year or options to buy extra benefit)
- State of Residence
- Additional Riders (Shared Care, for example)
- Elimination Period
- Limited Pay Options
Partnership policies look and act the same as any other long-term care policies! However, they provide additional asset protection as a reward for people who have planned in advance for the cost of long-term care.
The first four states to adopt partnership policies were California, Indiana, New York and Connecticut, collectively known as the original partnership states. Today, most states have active partnership plans in place. The federal Deficit Reduction Act of 2005, signed into law by President George W. Bush, gave the states the authority to set up partnership programs to encourage and reward consumers who purchased qualified long-term care insurance by giving them an added layer of asset protection.
These partnership certified plans provide the consumer with additional “dollar-for-dollar asset protection” or what is referred to as “asset disregard”. This means that the exact amount of your resources (assets) equal to the dollar amount of long-term care insurance benefits paid to you or on your behalf under the policy may be disregarded for purposes of determining eligibility for long-term care Medicaid benefits. It also protects your estate from any subsequent recovery by the State for receipt of Medicaid-paid services.
Under most circumstances, if you need Medicaid to pay for long-term care services, you must satisfy the income and asset eligibility levels for Medicaid. For many, this means a spend-down of their assets before Medicaid will allow them to apply. With a partnership policy, the amount of assets that may be disregarded is equal to the amount of long-term care benefit paid out of the policy prior to the time you apply for long-term care Medicaid. As a result, you may be able to receive coverage under Medicaid without first being required to substantially exhaust your personal resources. Furthermore, the amount that may be shielded from estate recovery would be equal to the amount of assets disregarded for purposes of eligibility for long-term care Medicaid benefits.
These plans require certain inflation benefit features, among other things, in order for your state to certify them. For many people, the extra asset protection is a key ingredient to safeguard assets from the high costs of extended long-term care.
Yes, Long-Term Care Insurance policies are valid anywhere in the United States and U.S. territories. There is no change in premium if you move in the future.
If you move and have a Partnership Long-Term Care Insurance policy, the additional dollar-for-dollar asset protection will still be valid in most states.
State tax incentives are only valid in the state where your primary residence is located. Federal tax incentives are not affected by the state of your residency.
You can receive benefits anywhere in the U.S. and territories. Some insurance companies even offer some limited international benefits as well.
Long-Term Care Insurance is medically underwritten, so you need reasonably good health to qualify for coverage. Most people obtain coverage in their 50s.
Planning for the costs and burdens of aging and declining health has become a vital part of retirement planning. Premiums are based, in part, on the age you are when you obtain coverage, your health, your family history, and the amount of coverage within your policy.
While some companies will consider new coverage for those in their 70s, the ideal time is before you retire. The younger you are, the lower the premiums will be - and premiums are generally intended to remain level for the life of the policy.
While you might pay for more years if you purchase a policy when you are in your 50s, you will usually pay less over the lifetime of your policy. The most significant concern is your eligibility for coverage.
Every insurance company has its own guidelines for underwriting. Your good health gives you the ability to address the high costs of long-term health care so you can safeguard income and assets and reduce the stress otherwise placed on your family.
Discuss with Linda whether this is a good time for you to obtain coverage.
No, there is no cost to you at all. Linda represents all the top companies that offer long-term health care solutions. She will discuss your options with you when you make an appointment. There is no charge for her advice.
Your state's department of insurance regulates insurance premiums. If you apply and get approved for a policy, Linda receives a commission from the insurance company. Your premium is NOT higher because of the commission.
Linda is ready to assist you and your family from start to finish and beyond. She will service your policy and help you and your family into the future.
Call Linda now for an appointment for free and accurate quotes from all the top companies.