The Benefit of a Partnership Policy
A Partnership-qualified long-term care policy protects a portion of your client’s assets while providing a Medicaid safety net.
How does a Partnership policy work?
• Long-term care partnership policies are alliances between a participating state and a private insurance company
• A partnership-qualified policy, must be recognized, filed with and approved by the state
• Partnership programs are specifically designed for people who otherwise might plan to rely on Medicaid for their long-term care needs. A partnership policy encourages them to purchase a LTCi policy.
• Owning a partnership-qualified policy entitles people who exhaust their policy benefits to retain a specific amount of assets and still qualify for Medicaid, provided they meet all other Medicaid eligibility requirements. Asset protection is usually provided on a dollar-for-dollar basis. For example, if someone owns a partnership-qualified policy with a $200,000 policy limit and they spend $200,000 in benefits - then, they can protect $200,000 in assets from the required Medicaid spend-down
• In order to be considered partnership qualified, the policy must be tax qualified and include inflation protection for applicants under age 76. Some states and carriers offer as little as 1% compound inflation and still allow for Partnership protection.
Under Age 61: Compound Inflation Required
Age 61-76: Some level of inflation Required
Age 76 and older: Inflation Protection is optional
Long-term care insurance provides us with certainty – control of our choice in care, stability in the funds to pay for our care and peace of mind to our loved ones.
For more information on the Partnership program available in your state, please contact our marketing team. 1-800-945-1953