Long Term Care Insurance. Health
Insurance That Protects Your Life
Beginning January 1st, 2012, 10,000 Baby
Boomers will turn 65 every day for the
next 19 years. The majority of them have
not planned at all or what little
planning they have done will not be able
to cover the rapidly growing costs of
Long Term Care assistance. Many were
planning on tapping into their home
equity to help pay for Long Term Care
assistance. Unfortunately, after the
2008 mortgage loan crisis, many
Americans no longer have that option.
Those that do, are not looking forward
to carrying the burden of another loan
to pay for future Long Term Care
expenses. More from CNN:
American's are under the impression that
either Medicare or Medicaid will pay for
their future Long Term Care expenses.
The truth is that
Medicare does not
pay for Long Term Care expenses
and in order to qualify for Medicaid,
the Government requires you to liquidate
nearly all of your assets (5 years
BEFORE you need Medicaid).
millions of aging Baby Boomers, bankrupt
state Medicaid programs and
17 million more
Americans being added to
Medicaid starting in 2014 under the
President's new health care law.
industry - working in partnership with
the states - has designed "Long
Term Care Partnership"
policies. A Partnership-qualified policy
allows you to apply for Medicaid under
modified eligibility rules that include
a special feature called an “asset
disregard.” This allows you to keep
assets (generally your savings) that you
otherwise would not be allowed to keep
in order to qualify for Medicaid if you
need additional help to pay for
long-term care services. The amount of
assets Medicaid will disregard is equal
to the amount of the benefits you
actually receive under your long-term
care Partnership-qualified policy.
Since Partnership-qualified policies
must include inflation protection, the
amount of the benefits you receive can
be higher than the amount of insurance
protection you purchased. For example,
if you have a Partnership-qualified
long-term care insurance policy and
receive $100,000 in benefits from it,
you can apply for Medicaid and, if
eligible, retain $100,000 worth of
assets over and above the state’s
Medicaid asset threshold. In most states
the asset limit is $2,000 for a single
person. Asset limits for married couples
are often higher.
The following is an example of how a
Partnership-qualified policy works:
John, a single man, purchases a
Partnership policy with a value of
Some years later he receives
benefits under that policy up to the
policy’s lifetime maximum coverage
(adjusted for inflation) equaling
John eventually requires more
long-term care services, and applies
for Medicaid. If John’s policy was
not a Partnership-qualified policy,
in order to qualify for Medicaid, he
would be entitled to keep only
$2,000 in assets. He would have to
spend down any assets over and above
But because John bought a
Partnership-qualified policy, he can
keep $152,000 in assets and the
state will not recover those funds
after his death. John would only
have to spend down his assets over
and above the $152,000 in order to
be eligible for Medicaid.
To help consumers better
understand Long Term Care Insurance, The NAIC (National Association of
Insurance Commissioners) released
a detailed "Long
Term Care Buyers Guide".
is a must read for anyone considering
Long Term Care Insurance. In addition to
the NAIC, many financial firms have also
started outlining what to look for in a
Long Term Care policy. Bloomberg breaks
down key benefits you need to look
for when considering Long Term Care
Magazine also broke down what to look
for in a Long Term Care policy and how
much you should spend on one in their
Guide to Retirement.
are many companies that offer Long Term
Care insurance we recommend
Mutual of Omaha
Mutual of Omaha should be the company
for your Long Term Care insurance needs.
Their most flexible and best priced
product is called the "Mutual Care Plus"
plan. Click below to view the brochure:
Mutual of Omaha "Mutual Care Plus" Long
Term Care insurance brochure.
How much does
it cost for Long Term Medical Care in
your State? Mutual of Omaha has broken
it down by State.
Mutual of Omaha "Cost of Long Term Care
Services by State" brochure.
Mutual of Omaha Long Term Care Insurance