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Subject:  Re: Long-Term Care Insurance Date:  4/9/2012  4:21 PM
Author:  Hawkwin Number:  70521 of 88827

IMO, LTC has gotten much better over the last decade; especially with many states now offering partnership coverage. More on that later.

LTC policies come in so many different formats that it can be really easy to tailor one to match your needs - even including return of premium. Many have inflation protection built in. Many will also cover in home care for those families that do not want to be forced to commit their loved ones to a facility.

Regarding partniship coverage - many states are now subsidizing LTC policies by allowing you to shelter some or all of your assets from Medicaid spend-down. The policies do not cost anything more - it is just a way for the state to encourage you to have some coverage in the hope that you never have to use medicaid. If you do, then you could protect hundreds of thousands up to millions from the requirement of spending them down before qualifying for medicaid. This provision can really go a long way to insuring the other spouse is protected...

And these, IMO, are really about protecting the other spouse more than anything else. Sure, they can also protect assets for heirs but life insurance does that better - and if you qualify for one, you likely can qualify for the other.

A new client I have (female) has an existing LTC policy bought years ago but her husband didn't get one at that time. His care now costs her $9000 a month and it is quickly burning through their life savings. They used to have about $500k. They are now down to about $300K. This horrible situation puts the wife in a position she never wished to be - where she would be better off if he died sooner rather than later.

I worked in this industry nearly a decade ago so obviously things have changed but the addition of partnership coverage is a very welcome addition.
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