Partnership Programs

[MW Agent]

I tried calling my state program and got absolutely no where. Here is the question:

Husband: $360,000 lifetime benefit policy (no shared care rider)
Wife: $360,000 lifetime benefit policy (no shared care rider)

Three questions:

1. If husband needs LTC, exhausts policy benefits, but the wife is in good health, would the two policies only protect $360,000 in assets given the wife has not used any of her benefits?

2. If the wife needs LTC later and exhausts her policy benefits, but only had $360,000 in assets protected from question #1 when the husband depleted their assets, does her policy offer any additional asset protection? It would seem that would not be the case if the assets were already depleted when the husband needed care.

3. To go one step further, if the wife only had $360,000 in assets left to while the husband is receiving care, then uses that to live on and continues to deplete the assets to say $100,000 before needing care, would only the remaining $100,000 be protected even though she has a partnership policy with $360,000 lifetime benefits?

 

[Mr_Ed]

I tried calling my state program and got absolutely no where. Here is the question:

Husband: $360,000 lifetime benefit policy (no shared care rider)
Wife: $360,000 lifetime benefit policy (no shared care rider)

Three questions:

1. If husband needs LTC, exhausts policy benefits, but the wife is in good health, would the two policies only protect $360,000 in assets given the wife has not used any of her benefits?

2. If the wife needs LTC later and exhausts her policy benefits, but only had $360,000 in assets protected from question #1 when the husband depleted their assets, does her policy offer any additional asset protection? It would seem that would not be the case if the assets were already depleted when the husband needed care.

3. To go one step further, if the wife only had $360,000 in assets left to while the husband is receiving care, then uses that to live on and continues to deplete the assets to say $100,000 before needing care, would only the remaining $100,000 be protected even though she has a partnership policy with $360,000 lifetime benefits?

what state are we talking about?

 

[MW Agent]

what state are we talking about?

MN

20 characters. ..........

 

[Newby]

I tried calling my state program and got absolutely no where. Here is the question: Husband: $360,000 lifetime benefit policy (no shared care rider) Wife: $360,000 lifetime benefit policy (no shared care rider) Three questions: 1. If husband needs LTC, exhausts policy benefits, but the wife is in good health, would the two policies only protect $360,000 in assets given the wife has not used any of her benefits? 2. If the wife needs LTC later and exhausts her policy benefits, but only had $360,000 in assets protected from question #1 when the husband depleted their assets, does her policy offer any additional asset protection? It would seem that would not be the case if the assets were already depleted when the husband needed care. 3. To go one step further, if the wife only had $360,000 in assets left to while the husband is receiving care, then uses that to live on and continues to deplete the assets to say $100,000 before needing care, would only the remaining $100,000 be protected even though she has a partnership policy with $360,000 lifetime benefits?

In most states the way you described is correct. The amount of coverage that actually goes on claim is protected.
In some states though (Indiana being one) you have unlimited asset protection with any policy that meets the partnership minimum. So it would protect millions.
I don't know which states that applies to.

 

[Arthur Rudnick]

originally posted by Newbie

In most states the way you described is correct. The amount of coverage that actually goes on claim is protected.
In some states though (Indiana being one) you have unlimited asset protection with any policy that meets the partnership minimum. So it would protect millions.
I don't know which states that applies to.

All states offer a dollar-for-dollar amount of asset protection.
In addition to a dollar-for-dollar amount, NY & IN are the only states that offer 100% Total Asset Protection.

 

[Newby]

originally posted by Newbie All states offer a dollar-for-dollar amount of asset protection. In addition to a dollar-for-dollar amount, NY & IN are the only states that offer 100% Total Asset Protection.

That few? I knew it was special. I had no idea we were that special.

 

[Arthur Rudnick]

I need to correct myself.

I said that "All states offered dollar-for-dollar protection".
Not totally true. I should have said that there are 40 states that participate in Partnership Programs. Of the 40 states (I may be off by a couple) they all offer dollar-for-dollar asset protection. In addition, NY & IN also offer Total Asset Protection.

The Partnership was established in 1992 in CT, followed by NY, IN & CA.
At inception, NY was the only state to offer 100% Asset Protection. IN added 100% Asset Protection as an option, I believe in 2002.

NY added dollar-for-dollar protection around 2005. But, very few dollar-for-dollar protection policies have been sold in NY. Why would someone purchase a dollar-for-dollar policy, when for a few bucks more they could purchase a policy that will protect 100% of their assets?