Long-Term Care insurance is just one strategy that we use to help our clients protect the assets they have built over their lifetime. Please remember that we're here to help provide information on what long-term care planning strategies may or may not be right for you, your circumstances, and your family.
RISING COSTS FOR CARE
The cost for Long-Term Care in a Connecticut nursing facility has increased by more than 5% a year, each year, for the last 5 years. As a result more people are considering Long-Term Care insurance. This newsletter addresses some of the key elements of Long-Term Care, and Long-Term Care insurance, with an emphasis on the Connecticut Partnership for Long-Term Care.
WHAT IS LONG-TERM CARE?
Long-Term Care is assistance you may need over an extended period of time to manage, rather than cure, a chronic condition or to compensate for a limited ability to function. Your may need long-term care services if you need help from another person to perform daily activities, such as bathing, dressing, or eating. You may also need long-term care services if you need ongoing supervision because of deterioration in your mental capacity (such as from Alzheimer's disease or other forms of dementia).
SHOULD YOU PURCHASE LONG-TERM CARE INSURANCE NOW OR WAIT?
You should discuss the timing of your purchase with your family, financial, and legal advisors. The younger you are at the time you purchase, the less expensive the premium and the greater the likelihood you will be accepted for coverage. If you select inflation protection that increases both the daily and lifetime benefits of the policy, you will also have a longer period of time for the policy benefits to grow.
WHAT TYPE OF LONG-TERM CARE SERVICES DO YOU WANT THE POLICY TO COVER?
Some policies only pay for care received in a nursing facility or assisted living facility. Others provide a comprehensive pool of dollars that can be used to pay for care received in the home, the community, or a nursing facility. The more comprehensive the policy, the more choices you will have in the type of services that will be paid by the policy.
WHAT IS THE CONNECTICUT PARTNERSHIP FOR LONG-TERM CARE?
Connecticut Partnership policies carry a special endorsement from the State for meeting additional consumer protection standards. These standards include many consumer safety features that provide assurance you are purchasing a quality product.
Connecticut Partnership policies allow you to PROTECT ASSETS equal to what your policy has paid in benefits. This feature is known as Medicaid Asset Protection. PROTECTED ASSETS will be disregarded or ignored if you need to apply to Connecticut's Medicaid program to help pay your long-term care bills. ONLY PARTNERSHIP POLICIES PROVIDE MEDICAID ASSET PROTECTION.
Only Partnership policyholders are guaranteed a 5% discount on nursing facility rates in Connecticut. You can, however, bring your policy with you to another state in the event you move from Connecticut. There is no guarantee though that another state will honor the 5% discount.
Agents and brokers who sell Partnership Long-Term Care insurance policies must receive special training. Both Bob Havens and I have received this training, and are certified to sell the Connecticut Partnership policy.
The Connecticut Partnership for Long-Term Care has scheduled Public Forums on the Partnership program for the Fall. The Forums will be held:
October 27th - Darien Public Library - DARIEN
November 1st - Sheraton Hotel - EAST HARTFORD
November 3rd - Wallingford Public Library - WALLINGFORD
The forums are free to the public and run from 6-8 P.M.
We hope you find this quarter's newsletter informative and that it provides some “food for thought”. As always, please contact us by phone, email or fax with questions on this or other financial issues important to you.
Best regards,
Timothy J. Bourdon, President, and Robert Havens
