A Long Term Care insurance policy becomes a Colorado Partnership Long Term Care insurance policy if the policy is created with the appropiate criteria as required by the state of Colorado. There are three main factors that determine Partnership eligibility:
- The policy must be written after January, 1 2008
- Must be tax-qualified – “Short Term Care” policies with 360 day limits are NOT tax-qualified and will NOT be Partnership eligible. A majority Long Term Care insurance policies written are “tax-qualified”, this means you may file your Long Term Care insurance policy as a part of your annual health expense on your tax return (consult a tax professional for specific details).
- The “inflation rider” portion of your Long Term Care policy – The required amount for the inflation rider is determined by your age. (see below) The inflation rider determines the rate at which the policy maximum and overall benefits will increase on an annual basis. The rider is designed to keep up with the rising cost of care. An inflation rider is not automatically included in your policy but is a very important factor when designing a Long Term Care insurance policy, and should be discussed in depth with your agent. Your inflation rider can vary in amount, and will significantly impact the effectiveness of your policy when the time comes to place a claim. A 5% compound rider is currently the highest the industry has to offer.
For more material about the Colorado State partnership program, order a Long Term Care Colorado Partnership Brochure request form
Colorado Partnership Long Term Care policy inflation rider requirements:
Age 60 or younger: Any automatic compound inflation rider required
Ages 61-75: Any automatic inflation rider required (with exception of Guaranteed Purchase Option, or GPO)
Age 76 and older: No inflation rider required, all Tax Qualified policies are automatically Partnership Eligible.