Long term insurance costs depend on the options chosen by the applicant. The more options you choose, the higher the cost of your plan will be, but it will still be more affordable than the price of long term care in a nursing home without insurance.
Recognizing that the premiums for long term care insurance plans appear unaffordable to most people, the federal government introduced the LTC Partnership Program. This program combines the purchase of long term care insurance with eligibility for Medicaid coverage for long term care services. With the partnership, you can become eligible for Medicaid after using the insurance benefits without having to exhaust your own assets to qualify. Your assets equal to the amount expended by your insurance policy are not considered countable when it comes to Medicaid eligibility. The one exception is for those with home equity exceeding $533,000 as of 2013 in Ohio. These applicants would still not qualify for Medicaid even if they have a Partnership policy.
Traditional Long Term Insurance covers services such as adult day care, in-home care, assisted living, and nursing home care. The insurance plans are commonly referred to as “lifestyle insurance” plans.
Underwriting is the first step you will go through when applying for a long term care insurance plan. The insurance company will check your medical records to determine your health history. Some diagnosis may prevent you from qualifying, such as short-term memory loss, Alzheimer’s, Parkinson’s, Multiple Sclerosis, Lou Gehrig’s, or a stroke with permanent physical impairment. In the end, each insurance company has their own underwriting guidelines. It is recommended that you call and talk to an agent with any questions you may have and to see if you qualify.
