What Makes a Partnership Policy Unique?
A Partnership long-term care insurance policy will protect your independence by ensuring that you are covered for long-term care expenses and maintain your dignity by assuring you will not have to depend on others for your care needs.
A Partnership policy also has a unique feature. This feature is "lifetime asset protection". This assures that catastrophic long-term care expenses won't reduce you to poverty even if you run out of insurance benefits. That's something other long-term care insurance policies do not offer.
Here is how this special feature works, when you need care your Partnership-approved private long-term care insurance policy pays for your care in the same way other high quality long-term care policies would; but, unlike a traditional non-Partnership policy, each dollar your Partnership policy pays out in benefits entitles you to keep a dollar of your assets if you ever need to apply for Medi-Cal services.
For most of you, the benefits of a Partnership insurance policy will provide all the care you will ever need. But you won't have to impoverish yourself if you run out of insurance benefits and still need care. You can apply to Medi-Cal for assistance in paying the costs of your continued care and not have to "spend down" your savings to the poverty level. Each dollar your Partnership policy pays in benefits for your care is protected against Medi-Cal "spend down" rules. You may have to apply a portion of your income toward the cost of your care, but the assets you protected by purchasing a Partnership policy remain yours, for you and your spouse's use or to leave to loved ones.
"Every once in a while an idea comes along that has some real merit. The California Partnership is a case in point."
Source: Senior World, October, 1994
What Does a Partnership Policy Cost?
A Partnership policy costs about the same or slightly less than other policies that offer similar coverage. But Partnership policies include lifetime asset protection and access to Medi-Cal services should you ever need them - an invaluable added benefit at no extra cost.
Because of the Partnership asset protection feature, you don’t have to worry that you may run out of insurance benefits and end up spending the savings that you hoped to protect paying for ongoing care needs. The asset protection feature enables you to purchase policies with coverage equal to the amount of assets you want to protect from approximately $47,000 up to your total assets - with the assurance that these assets are protected for life, no matter how extended or expensive your long-term care needs may be. Without a Partnership policy, you could only achieve lifetime asset protection by purchasing lifetime insurance coverage...something most people cannot afford. This added protection and peace of mind comes only with the purchase of a Partnership policy. Each insurance company offering Partnership policies has its own premium rates. However, the younger you are when you purchase coverage, the less expensive your premium will be. That is a good reason to buy earlier. Any retirement planning needs to consider how you will pay for your long-term care.
During the 4th. quarter of 2010 (October - December), Partnership policy purchasers had the following characteristics:
Purchaser Demographics
| This
Quarter | Overall Experience
|
|---|
Age:
Average Age
Between 55 & 74 years of age
Other ages |
59
70%
30% |
59
68%
32% |
Gender:
Male
Female |
40%
60% |
41%
59% |
Marital Status:
Married
Not Married |
72%
28% |
70%
30% |
Policy Type:
Comprehensive
Facility Only |
99%
<1% |
96%
4% |
Purchase Type:
First Time Purchase
Upgrade
Replacement |
98%
<1%
2% |
96%
1%
3% |
These purchasers reflect the following preferences in the length of the coverage they bought:
| Policy Length | This Quarter | Average Age of Purchaser | Overall Experience By Policy Length |
|---|
| One Year | 3% | 62 | 6% |
| Two Years | 23% | 60 | 20% |
| Three Years | 30% | 58 | 25% |
| Four Years | 26% | 58 | 21% |
| Five Years | 3% | 55 | 3% |
| Six-Ten Years | 6% | 56 | 4% |
| Lifetime* | 9% | 53 | 21% |
* Only available since October 1998.Overall, you could say that during the 4th. quarter of 2010, the average Partnership policy purchaser is likely to be a 59 year old female who is married and is purchasing a long-term care policy for the first time and buys a Comprehensive (Residential Care, Nursing Home, Home Care) policy with 2 to 4 years coverage.
Policyholders that have qualified for benefits and have used their policy benefits reflect the following benefit uses and preferences:
| Type of Service | This Quarter | Overall Experience |
|---|
| Skilled Nursing Facility (Nursing Home) | 5% | 8% |
| Assisted Living Facility/RCFE | 26% | 23% |
| Home Health Aide Services | 21% | 16% |
| Home Health Care Services | 2% | <1% |
| Attendant Care | 3% | 8% |
| Personal Care | 27% | 22% |
| Homemaker (non-personal care) | 5% | 2% |
| DME (Durable Medical Equipment) | 3% | 1% |
| Personal Emergency Response System | 1% | 1% |
Note: Care Management Services and other services amounting to less than 1% of usage during the quarter are not included. The percentages, therefore, do not equal 100%.
How Do I Get Partnership Coverage?
Partnership long-term care insurance policies may only be sold by select insurance companies that meet the special standards established by the State. These companies are listed for you under the Insurance Partner Company Information heading on the
Consumer information home page.
Partnership long-term care insurance policies are only marketed by licensed insurance professionals who have completed special training required by the State of California. A Partnership policy, with its unique lifetime asset protection feature assures that you will not be forced to spend everything you have worked for on long-term care.
The Partnership Has Taken The Guesswork Out Of Selecting A High Quality Policy
Two types of Partnership policies are available: A facility only policy that covers care in a facility (nursing home and residential care facilities) or a comprehensive policy that cover care at home, in the community, as well as in a nursing home and residential care facility.
You choose the amount of coverage you want. Policies offer coverage from one to five years or lifetime. To be assured you are selecting high quality coverage, all Partnership policies include: Automatic inflation protection to ensure that your benefits keep pace with the rising cost of care;
- Automatic inflation protection to ensure that your benefits keep pace with the rising cost of care;
- A deductible that must be met only once in your lifetime;
- Care coordination to assist you in planning and securing the services you want and need;
- Waiver of premiums while you receive care in a nursing home or residential care facility; and
- Interchangeable policy benefits so that care can be customized to meet your individual needs.
