How does long-term care insurance protect assets from Medicaid?

Long-term care insurance protects your savings from Medicaid spend-down in two distinct ways.

1. It keeps you off Medicaid in the first place. Medicaid is means-tested — you generally must spend down most of your assets before it pays. A policy that covers your care means you pay from insurance instead of your own savings, so you may never need Medicaid at all.

2. A Partnership policy adds asset protection. If you do eventually need Medicaid, a Partnership policy lets you keep an amount of assets equal to what the policy paid in benefits, and still qualify. That protects your estate even in a long, expensive claim.

Without either, most people pay out of pocket until their savings run low — see the cost of care without insurance.

General information only. This is educational and not insurance, legal, tax, or financial advice. Rules and products vary and change — confirm the specifics with a licensed professional.