NEW LONG TERM CARE INSURANCE POLICY AVAILABLE

SPRINGFIELD, IL, -- Illinois Department on Aging Director Maralee I. Lindley and Illinois Department of Insurance Director Mark Boozell today announced the availability of a new type of long term care insurance that will allow Illinoisans to obtain long term health care at home or in a nursing home without having to impoverish themselves. The "Partnership Policy" is a three-way partnership involving an individual, a licensed insurance company and the State of Illinois.

"Developed by a task force representing insurance companies, consumers and state officials, the Partnership offers Illinois residents a unique blend of insurance coverage and asset protection not available through traditional long term care insurance coverage," Lindley said.

With a Partnership Policy, consumers can protect a dollar of assets for each dollar of insurance they buy. For example, if an individual buys a policy with a maximum benefit payout of $50,000, then $50,000 of that person's assets would be protected. After the individual's insurance benefits are used, he or she could keep $50,000 in personal assets and still be eligible to have Medicaid pay for additional long term care costs.

Individuals who want to protect more or less of their assets, can select a policy with a higher or lower benefit payout, but there is no limit on the amount of assets that can be protected in this way.

"We are especially pleased that policyholders will have the option of using their long term care insurance benefits to purchase in-home services, such as home delivered meals or shopping assistance," said Lindley.

To date, the Partnership Policy is being offered by the American Travellers Life Insurance Company and Bankers Life and Casualty Insurance Company.

"Other companies are eventually expected to carry the policy, as well," said Insurance Director Mark Boozell. "The policy is an example of how the public and private sector can work hand-in-hand to provide a type of insurance that makes a lot of sense for people who are concerned about protecting their assets."

Illinois insurance producers selling the Partnership Policy are required to complete six hours of specialized training in addition to the six already required for long term care products.

The cost of a Partnership Policy depends on the individual's age at the time of purchase, as well as the amount and type of policy features selected. The younger an individual is, the lower the cost of the policy.

A shopper's guide and brochure that explain more about the Partnership Policy are available free of charge through the Illinois Department on Aging's Senior HelpLine, 1-800-252-8966 (Voice and TDD).