Insurance-Partnership Plans News

Save You Money- Partnership Plans (Insurance)

There is no additional cost for Long Term Care Partnership Benefits. The states require you purchase inflation protection, but that is already part of any good Long Term Care plan already. In California, you are required to purchase $160/day benefit minimum – virtually all other states (except NY/CT/IN/Mass) have no such requirement.

How do I qualify?

Your policy must be a state approved Partnership plan (ask your LTC Tree agent for details) and depending on your age must have either compound or simple inflation protection. This is a state-by-state specific issue, so having a knowledgeable agent is key.

How does it save me money?

While about 15% of clients will opt for an unlimited benefit period, the existence of the Partnership plans makes it possible for you to possibly purchase less coverage closer to the average risk knowing that if your claim lasts longer than average, you may have asset protection thanks to your LTC Partnership policy.

We don’t want to overstate the actual utility of the Long Term Care Insurance Partnership Program for the average consumer  because the States know that 92% of Long Term Care claims are for 3 years or less.  This statistics reveals that most people simply do not use up their Long Term Care Insurance benefits, so if the state can encourage personal responsibility, it will save already heavily strained Medicaid program money and help the states stay solvent.

The bottom line is, state Partnership Plans are nice safety net to have in your Long Term Care plan, but odds are you’ll never have to fall back on it.  The state actuaries are aware of this, so we expect Partnership plans to grow rather than shrink as state budgets tighten.

Currently, these programs operate in most states. More on that below.