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Re: LTC - benefit terms, renewability & partnership plans

Posted by Rene' Apack on February 14, 2002 at 03:46:19:

In Reply to: LTC - benefit terms, renewability & partnership plans posted by Laura Thomas on February 11, 2002 at 15:19:52:

: I have some questions:

: 1) Benefit years. I am not sure I understand this correctly. If I buy a policy that provides 3 yrs of coverage and I have no need of care for 20 years I am still covered for all that time right? If I break a hip and need care for 6 months, then later need care for 2.5 years, does my coverage end there. Does it matter if I only used home care vs nursing home care. Or does a 3 yr benefit term mean I get 3 yrs of each type of coverage, home & nursing for a comprehensive policy.
- you are covered for 20 years, until you need care then you can receive care for 3 years(1095 days x $$$daily amount)= your benefit account. if you use it for 6 months at maximum daily benefit than you'll have 2.5 years worth of care left. You may add "restoration of benefits rider" than you can have the whole account restored to the full 3 years.--
Depending on the policy you choose: % coverage at home or facility care, you will deplete your benefit account.

: 2) Policies with Maximum benefit amounts. Do these mean I have coverage until they have paid me X amount of dollars in benefits, regardless of the # years of coverage I initially specified, or do these provide coverage to the earlier of X years or hitting the max amount.

--Great question: must read or ask your LTC specialist to clearly explain. they vary widely.

: 3) Guaranteed Renewability. Continuing the above example, I am in a nursing home when I use up my 3 yrs of benefits, then I am allowed to renew the policy automatically. Is this correct? So if I were in a nursing home at that time, of course I would renew. Would my underwriting class be re-evaluated, so that it would be so expensive I really couldn't renew?

----No, once you have used up your benefits say 3 years, it's over. Note that that's the nation wide average stay. Your assets just increased by 3 years x daily $$.
Guarantee renewability is that the company can not drop you if your health changes or you are way older.

: 4) NY partnership plans. If I bought a partnership plan does this mean I wouldn't want to renew, because if my income were low enough I could just switch to medicaid without having to meet minimum asset requirements? So basically I could switch to medicaid for free instead of renewing at a older age/higher premium, right?

----I do not work in NY but if you need to know this I can put you in touch with an LTC Specialist.

: 5) If I buy a policy in NY but eventually retire in FL do I lose coverage, or do I have to change my policy.

-----No problem, most top companies are nationwide coverage, so you can receive benefits anywhere in the US. Just make sure that todays LTC rates are comparable.
Example NY daily average $ 225
FL " " " " $ 160

I hope this helps you.

Rene' Apack
877-467-6763 Toll Free

Follow Ups:

Re: LTC - benefit terms, renewability & partnership plans : : I have some questions: : : 1) Benefit years. I am not sure I understand this correctly. If I buy a policy that provides 3 yrs of coverage and I have no need of care for 20 years I am still covered for all that time right? If I break a hip and need care for 6 months, then later need care for 2.5 years, does my coverage end there. Does it matter if I only used home care vs nursing home care. Or does a 3 yr benefit term mean I get 3 yrs of each type of coverage, home & nursing for a comprehensive policy. : - you are covered for 20 years, until you need care then you can receive care for 3 years(1095 days x $$$daily amount)= your benefit account. if you use it for 6 months at maximum daily benefit than you'll have 2.5 years worth of care left. You may add "restoration of benefits rider" than you can have the whole account restored to the full 3 years.-- : Depending on the policy you choose: % coverage at home or facility care, you will deplete your benefit account. : : : 2) Policies with Maximum benefit amounts. Do these mean I have coverage until they have paid me X amount of dollars in benefits, regardless of the # years of coverage I initially specified, or do these provide coverage to the earlier of X years or hitting the max amount. : --Great question: must read or ask your LTC specialist to clearly explain. they vary widely. : : : 3) Guaranteed Renewability. Continuing the above example, I am in a nursing home when I use up my 3 yrs of benefits, then I am allowed to renew the policy automatically. Is this correct? So if I were in a nursing home at that time, of course I would renew. Would my underwriting class be re-evaluated, so that it would be so expensive I really couldn't renew? : ----No, once you have used up your benefits say 3 years, it's over. Note that that's the nation wide average stay. Your assets just increased by 3 years x daily $$. : Guarantee renewability is that the company can not drop you if your health changes or you are way older. : : : 4) NY partnership plans. If I bought a partnership plan does this mean I wouldn't want to renew, because if my income were low enough I could just switch to medicaid without having to meet minimum asset requirements? So basically I could switch to medicaid for free instead of renewing at a older age/higher premium, right? : ----I do not work in NY but if you need to know this I can put you in touch with an LTC Specialist. : : : 5) If I buy a policy in NY but eventually retire in FL do I lose coverage, or do I have to change my policy. : -----No problem, most top companies are nationwide coverage, so you can receive benefits anywhere in the US. Just make sure that todays LTC rates are comparable. : Example NY daily average $ 225 : FL " " " " $ 160 : I hope this helps you. : Rene' Apack : 877-467-6763 Toll Free

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