Long Term Care Partnership Program

35442709 - female caretaker helping senior man in using zimmer frameSome long term care insurance policies sold in Michigan may qualify for the Michigan Long Term Care Partnership Program provided certain criteria are met.  Those policies that do qualify for the partnership program can protect the policyholder’s assets through what’s known as “asset disregard” under Michigan’s Medicaid program.  Asset disregard means that the policyholder’s assets equivalent to the benefits received under a partnership qualified long term care policy will be disregarded for purposes of Medicaid eligibility.  If you apply for and are approved for long term insurance coverage, the company will provide you with written documentation as to whether your policy qualifies for the partnership program. [Read more…]

How to Shop for Long Term Care Insurance

8438893_lLong term care insurance is often difficult to afford particularly in recent years with significant premium increases and companies leaving the long term insurance market altogether.  With nursing homes costing on average about $100,000 annually, it may seem as though consumers are stuck between a rock and a hard place.

According to the Wall Street Journal, there are still options available for those interested in long term care insurance. Insurance carriers Mutual of Omaha Insurance Co., New York Life Insurance Co. and Northwestern Mutual Life Insurance Co. still sell policies and have high financial ratings. These policies are better priced making rate increases less likely. [Read more…]

Long Term Care Insurance Woes

Two insurance units of Penn Treaty American Corporation – Penn Treaty Network America Insurance and American Network Insurance – are on track to be liquidated early next year due to excessive liabilities.  According to The Wall Street Journal, the liquidation of the two insurance units with assets of about $600 million and projected long term claim liabilities topping $4 billion is likely to be the second largest in U.S. history.  [Read more…]

Accelerated Death Benefit Rider – A Substitute for Long Term Care Insurance?

24908376_sLife insurance is commonly used to protect those who depend on you for financial security.  If you die prematurely, life insurance can provide your loved ones with the financial support they will need when your gone.  Also, as discussed in prior blogs, a hybrid life insurance and long term care policy can provide financial protection if you should become disabled and need long term care.   Many life insurance companies also offer Accelerated Death Benefits (ADB) as a rider to a life insurance policy which allow an insured to receive a portion of the death benefit if the insured is terminally ill or suffers from a chronic illness. [Read more…]

Facing Reality After Early Dementia Diagnosis

4321108_sAccording to Medicare data, one in three people age 65 or older have been diagnosed with Alzheimer’s or another type of dementia.  Despite this alarming statistic, many people refuse to plan ahead for the possibility they could become disabled.   With less than 10% of the population having long term care insurance and the majority of people erroneously believing Medicare will help pay for long term care, it can come as quite a financial shock when a loved one is diagnosed with dementia.  In a recent Washington Post article, “Facing Financial Reality When Early Dementia is Diagnosed,” a retired Air Force sergeant, Chuck McClatchey is profiled following his early dementia diagnosis at age 61.      McClatchey’s plans to work until age 70 were up-ended as he was forced to apply for Social Security disability income.  Fortunately, he had the good sense to get his legal affairs in order so that “when the time comes, those decisions won’t have to be made by someone else.” [Read more…]