Partnership vs. Long Term Care Hybrid Plans

[Mr_Ed]

I think it could make a lot of sense to do BOTH, depending on how the numbers work out, underwriting, etc. LTC for care and the SPWL to multiply and pass on the asset for beneficiaries.

You're 100% correct that the best way to insure against long-term care is with long-term care insurance. Imagine that!

 

[ltcadviser]

I am seeing a lot of interest in hybrid long term care plans, but by rule these policies cannot be partnership qualified as well. In my mind, that distinction can make traditional LTC plans more attractive.

Does our industry need to make a push to try to make hybrid plans partnership qualified as well? What do you think is holding it back? Why isn't this an easy fix if governments want to incentivize LTC purchases?

Tax qualified LTC insurance requires the policy to have no cash value. Might be an interesting future conversation for insurance executive lobbyists I think to allow the extension of benefit rider within linked benefit ltc plans to qualify for medicaid disregard asset protection benefits because these benefits are only accessed once the asset has been reduced to zero. Just require that the extension of benefits rider include inflation protection as would traditional ltci.

 

[Mr_Ed]

Tax qualified LTC insurance requires the policy to have no cash value. Might be an interesting future conversation for insurance executive lobbyists I think to allow the extension of benefit rider within linked benefit ltc plans to qualify for medicaid disregard asset protection benefits because these benefits are only accesed once the asset has been reduced to zero. Just require that the extension of benefits rider include inflation protection as would traditional ltci.

Excellent point