Asset Protection through Long Term Care Partnership

The Alabama Long-Term Care Insurance Partnership Program is designed to encourage residents of Alabama to purchase long-term care insurance by offering a plan that will allow Medicaid to disregard some or all of your assets for Medicaid eligibility and estate recovery purposes.

The Alabama Long-Term Care Insurance Partnership Program provides asset protection on a dollar-for-dollar basis. For every dollar that the insurance company pays out in benefits, is a dollar of your personal assets that will be protected if you need to apply for Medicaid.

For a policy to qualify for an Alabama Long-Term Care Insurance Partnership Policy is must follow these requirements:

• Be issued after March 1, 2009
• Cover an individual who was an Alabama resident when coverage first becomes effective under the policy
• Be a tax-qualified policy
• Meet stringent consumer protection standards
• Meet the following inflation requirements:
  • Age 60 and younger: Compound inflation required
  • Age 61-75: Some form of inflation is required
  • Age 76+: No inflation required