What is the Long Term Care Partnership Plan?

The Long-Term Care Partnership Plan is a law designed to encourage people to purchase Long-Term Care Insurance and write the premium off on their taxes.  Under the LTC Partnership Plan, you would be able to retain a significantly larger portion of your life savings in the event you exhaust your Long-Term Care Insurance (LTCI) benefits.  Instead of being required to spend your savings down to $2,000, you would be allowed to keep all your assets equal to the amount paid by LTCI benefits for the rest of your life... and the State would pay for your care.

Lets take a look...

Mr. & Mrs. Consumer have:

  • A Partnership Plan policy that pays $300,000 in benefits
  • $600,000 in liquid assets

Mr. & Mrs. Consumer enter a nursing home where:

  • They deplete the entire $300,000 in benefits provided by the policy
  • What happens now?

Using a Long Term Care Partnership Plan Policy:

Mr. & Mrs. Consumer...

  • Use only $300,000 of their $600,000 in assets for care
  • Remaining care is paid for by the state
  • Only have to spend down an amount equal to the Partnership Plan benefits

Mr. & Mrs. Consumer retain $300,000 of their $600,000 assets!