Questions about Long Term Care Benefit Plans

Questions about Long Term Care Benefit Plans 2016-10-20T09:13:57+00:00

Is the Long Term Care Benefit an insurance policy?

No, it’s a Long Term Care Benefit Plan administered by a third party on behalf of the insured and family with the payments sent every month directly to the provider of long term care services.

Are there any fees charged or premium payments?

No, there are no fees or obligations to apply and no more premium payments due on the policy.

Are funeral expenses covered?

Yes, all Benefit Accounts reserve 5% of the death benefit or $5,000, whichever is the lesser, to provide a funeral benefit payment to the Account’s named beneficiary.

How long does the process take?

The typical enrollment time is 30-60 days.

What type of life insurance policies qualify?

Most forms of in-force life insurance qualify including Term, Universal, Whole, and Group. The value of the conversion is based solely on the death benefit, and cash value is not a factor.

What type of care will the Benefit cover?

• Home Care (private-duty and skilled nursing)
• Assisted Living
• Nursing Home
• Hospice Care

Is the policy sold?

Yes, as part of the Benefit Plan enrollment the policy owner will complete a life settlement working directly with a licensed Provider.

What happens if the enrollee dies before all of the Long Term Care Benefit is paid out?

Should the enrollee pass away with additional funds remaining in their Benefit Account, the remaining balance is paid directly to the enrollee’s designated beneficiaries. Enrollees and/or their beneficiaries will receive the full Benefit amount even if the client dies before all monthly payments have been made.

Is a Long Term Care Benefit Plan Medicaid qualified?

Yes, because the policy is sold for its full market value, and the funds are protected in an irrevocable account that is only used to pay for long term care services it is a Medicaid qualified spend-down.