Long Term Care Insurance. Health Insurance That Protects Your Life Savings.

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:

Many 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).

In the past, many Americans have participated in what is known as 'Medicaid Planning' which consists of spending down all of your assets 5 years before you attempt to qualify for Medicaid. This practice, often frowned upon, has led to National spending on Medicaid more than quintupling over the past two decades. Now, about 16 percent of the entire U.S. population is enrolled on Medicaid. This had led to bankrupting many Medicaid programs, like California's Medicaid program and Illinois' Medicaid program and so many other states. In fact, Illinois is now selling their debt to cover more than $9.2 billion in back Medicaid payments due to hospitals and physicians. Even New York is now forced to cut billions in Medicaid spending.

Facing 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. The insurance 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:

1. John, a single man, purchases a Partnership policy with a value of $100,000.
2. Some years later he receives benefits under that policy up to the policy’s lifetime maximum coverage (adjusted for inflation) equaling $150,000.
3. 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 this amount.
4. 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". This 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 insurance:

CNN Money Magazine also broke down what to look for in a Long Term Care policy and how much you should spend on one in their "Ultimate Guide to Retirement.

Whilst there are many companies that offer Long Term Care insurance we recommend Mutual of Omaha insurance company. This Power Point presentation explains why 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 application. ILLINOIS.

For other State applications please Contact Us.

Contact Us if you are interested in quotes and details from another carrier's Long Term Care products.  

© Copyright 2011 S.B.I.S. Inc.