Long Term Care FAQs

What is Home Health Care?

     Home Health Care is medically required care provided in the home due to a chronic illness or prolonged disability. Items covered could include: nursing care, physical therapy, home care aides and similar types of services.

What does Long Term Care Insurance cover?

     Long Term Care insurance normally provides benefits for care or assistance received in a nursing home, assisted living facility, adult day care, community based care, alternative care facility or hospice care. Most long-term care policies also provide benefits for home care if elected.

What is the Partnership Plan?

     New York State established a Partnership for Long-Term Care (Partnership) program designed to assist residents of NYS in planning for the cost of Long Term Care. Partnership LTC policies have to meet certain standards to earn the Partnership designation from the NYS Insurance Department. If you are covered by a Partnership policy and benefits are exhausted, you can apply for Medicaid without regard to the type or amount of assets you can keep if you select the Total Asset Protection plan. Partnership policies do not protect income.

What does it mean if a policy is Tax Qualified?

     "Tax Qualified" Long Term Care policy is one that meets the requirements for Federal Tax deductibility. All LTC policies effective before 1/1/97 are automatically qualified for federal tax purposes. Those effective after 1/1/97 must meet certain standards to be eligible for federal tax deductibility. Premiums for Long Term Care are now eligible for a New York State income tax credit up to a specified dollar amount. It is always best to consult your tax advisor for more specific tax information.

How does one qualify for benefits on a Long-Term Care policy?

     Generally benefits are provided if you meet a certain number of triggers. Typical triggers or Activities of Daily Living (ADL) can be: loss of the ability to do certain activities, such as bathing, dressing, eating, transferring, toileting, continence or cognitive impairment. Which triggers and how many are used affect the premium and benefits.

What is inflation protection and are there different types?

     Inflation protection of Long Term Care benefits is very important since the costs of Long Term Care are increasing faster than any other sector of our economy. There are many different types of inflation protection offered. The compound interest benefit is the best and is also the most expensive. Many carriers also offer a simple interest inflation protection. Some carriers provide an increase in daily benefit tied to inflation. Generally this type of inflation protection also increases the premium if elected. For this reason it is important to understand the type of inflation protection selected and its effect on both premium and benefits.



Request a Quote