Asset protection is a financial consumer benefit included in Partnership policies provided by the State at no charge. For example - An individual has a Partnership long term care policy and is receiving benefits. The policy pays out all benefits and the policy is exhausted. However, this individual still needs care and now must pay for services with their own money or their family's money. If the individual cannot afford care, he may have to apply for government assistance called Medicaid. To qualify for Medicaid, an individual's income must be at or below certain income guidelines or he must "spend down" his income and assets to that level. With a Partnership policy, an individual can protect or will not have to "spend down" his assets. Assets that are protected include such items as cash, savings and checking account money, IRA's, certificates of deposit, and real property. Income such as social security and a monthly pension check is not protected.
The asset protection feature is not included in traditional long term care policies. For more information, please visit the Indiana LTC Partnership Program Website at www.longtermcareinsurance.in.gov .