Counseling Locations and Appointments
Last Updated:
3/12/03
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Buy long term care insurance (LTC) only if you can afford it without making a lifestyle change and be sure that you have the ability to afford a 20%-50% increase in the premiums in future years. |
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Do not sign a contract or make a payment before you have shopped carefully and have read the actual contract, not just marketing materials. Understand the vocabulary in the policy - ask for any definitions in writing on insurance company letterhead. |
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Fill out the application yourself and check for accuracy. This is a legal document. You are responsible for all information. |
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Do not be sold by the emotional issues of long term care insurance - When you buy a policy, you are not buying tender loving care. What you get is protection of your assets if you should need L.T.C. |
| This is a major lifetime purchase and not an appropriate purchase for everyone. Take your time in making a decision. |
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Consider suggested guidelines for purchasing LTC insurance - individual annual retirement income over $30,000 and assets (excluding your home) of $100,000 to $500,000. Understand your rights under the Spousal Impoverishment Law, as described below. |
The SPOUSAL IMPOVERISHMENT LAW applies to couples when one spouse begins a continuous period of residence in a nursing home and subsequently applies for Medicaid. All non-exempt assets (savings and checking accounts, stocks, bonds, etc.) owned by either spouse, jointly or separately, are pooled as of the date of institutionalization.
The "community spouse" may keep $17,400 or one-half of the assets, whichever is greater, but not more than $87,000. (The home and car do NOT count as assets.) The couple’s remaining assets are used to pay for nursing home care or other eligible expenses until the institutionalized spouse’s assets reach the Medicaid eligibility level of $2,500.
The "community spouse's" income will be evaluated to determine how much, if any, of the institutionalized spouse’s monthly income can be allowed for the community spouse’s monthly maintenance allowance. This maintenance allowance will supplement the community spouse’s own income up to $1,407/month. If shelter expenses alone exceed $422/month (30% of $1,407), an additional amount, equal to the excess, will be allowed. The maximum total allowance cannot exceed $2,175/month.
The institutionalized spouse also is allotted an allowance of $40/month.
A family allowance may be made if there is a dependent child, parent,
brother or sister of either spouse residing with the community spouse.
The amount is
1/3 of the community spouse’s maintenance allowance less any income
of the dependent individual, for each dependent family member. The
Department of Social Services is
responsible for evaluating a
couple’s income and assets and determining eligibility.