The State of Michigan now participates in the Long-Term Care Partnership Program. The Michigan Long-Term Care Partnership Program is a partnership between the state government and private insurance companies to assist individuals in planning their long-term care needs.
Insurance companies must follow state and federal guidelines, and agents must be licensed and trained to sell partnership policies. The idea is to provide a consumer with financial protection for the costs of long-term care with a safeguard of additional asset protection known as "dollar-for-dollar" or "asset disregard" protection.
Dollar-for-Dollar Asset Protection
Long-Term Care Insurance policies that qualify for the Partnership Program may protect the policyholder's or certificate holder's assets through a feature known as "Asset Disregard" under the state's Medicaid program.
Asset Disregard means that an amount of the policyholder's assets will be sheltered based on the total amount of long-term care benefits received from the policy.
The amount of money disregarded is used to determine the insured's eligibility for Medicaid. Generally, this allows a person to keep assets equal to the insurance benefits paid on your behalf under a qualified Partnership Program insurance policy. In other words, you don't have to have little or no assets in order to be eligible for the Medicaid Long-Term Care Benefit. You will have a safety net in the event you exhaust your benefits from your policy in a less likely but catastrophic long-term care situation.
Read more from the State of Michigan by clicking here.
To see more about Michigan and its requirements, click here.
If you live elsewhere, find your state by clicking here.
Currently, 45 states offer partnership policies that offer dollar-for-dollar asset protection. Many experts suggest this is one of the biggest secrets in retirement planning.
Plan Long-Term Care When You are Younger
Be sure to start your planning before you retire. The younger you are, the lower the premium. However, not all insurance companies offer partnership policies. Premiums vary dramatically for the same benefits, so be sure to seek the help of a qualified Long-Term Care Insurance specialist.
A specialist will help you design the appropriate plan based on your concerns and budget. The specialist will match your age, health, and other factors to obtain the best coverage at the lowest cost.
Click here to find a trusted Long-Term Care Insurance specialist.
About the Author
An LTC News author focusing on long-term care and aging.
Contributor since August 21st, 2017