Similar to car or homeowner’s insurance where you pay for a lifetime until you need care. It comprises about half of the policies sold today. Based on a pool-of-funds and is the most customizable of plans. These policies have the strictest underwriting guidelines and are the least costly insurance solution if you do need care.
Most are tax-qualified and the benefits received are tax free and premiums may be deductible. Inflation protection can be added to keep up with the rising cost of healthcare.
Partnership policies have Medicaid Asset Protection which safeguards dollar for dollar your assets equal to the amount of benefits you purchased.
Generally available for those between the ages of 18-75.
Fully customizable to suit your needs:
monthly benefit amount
elimination period or deductible
Policy cannot be cancelled unless the policy owner fails to pay the premium. Rates can increase but it has to be approved by the Insurance Commissioner. Policies today are priced much more conservatively