LTCI Spousal Discounts: A Practical Way to Stretch Budget & Benefits
Till death do us part, together forever, you and I in this together, and all those vows meant to signify unity between two people. Not to break anyone’s view on love (which is a subjective topic to tackle), but spouses may have difficulty sticking it out together through thick and thin, especially during the retirement years. From financial trouble of having to pay for custodial care, a whole spectrum of emotions dealing with old age, and possible diseases and conditions connected to aging – the entire transition towards the golden years may not be as easy as one may think.
Which is why long term care insurance and the discounts it offers to spouses can be considered a massive benefit – let’s learn more about this helpful feature:
The Importance of a Spousal Discount
You and your spouse can spend the rest of your lives with ease through spousal discounts for long term care insurance. Aging comes with the weakness of the body, cognitive problems, and certain illnesses. Getting insured for long term care allows you and your spouse to manage these aging-related complications and enjoy the post-retirement years (Additionally, spousal impoverishment rules exist to help out partners in their time of need, by offering flexible and practical means to keep control of their finances through discounts).
Who Qualifies for a Spousal/Partner Discount?
To set things straight, long term care insurance discounts do not apply exclusively to married couples. They also apply to domestic partners. Marriage can be proven in a relatively hassle-free manner by simply presenting marriage certificates and other related paperwork. However, the term “partner” can be ambiguous. Insurers throughout the country differ in their rules for partner discounts – make sure to know what applies in the state you plan to retire in, or discuss how this definition works with an LTCI specialist.
For partner discounts, you will qualify if you and your partner are not married and mutually work when it comes to taking care of costs of basic necessities. Additionally, you and your partner should be living continuously in the same residence for at least three years. Do not forget your Certificate of License of Civil Union from state authorities, as proof of your union.
How Do You Benefit from Spousal Discounts?
Spousal discounts enable you and your spouse to save as much as 40% of insurance-related expenses in a single year. There are long term care insurance policies that allow you and your spouse to merge benefit periods, and distribute insurance benefits later.
Let’s paint a picture: Suppose that you purchase a long term care insurance policy with a benefit period of three years. You and your spouse are now entitled to insurance benefits within six years. If your spouse has an ailment that requires long term care, she can have four years of benefit period while you have two years. It’s a flexible redistribution of assets that can help fit in different kinds of scenarios a couple may encounter.
If you and your spouse (or partner) gets insured jointly, you both receive a minimum of 25% discount up to 40% discount with most insurers in the U.S. Keep in mind that some insurers only provide 10% to 15% spousal or partner discount when only one spouse enrolls for long term care insurance. However, this approach only benefits spouses or domestic partners when one of them cannot qualify for insurance payments. Regardless, a discount can help lessen the burden of paying for necessary custodial care, especially when it deals with activities of daily living that the elderly may have trouble (or for some, no means at all to accomplish) doing.
Who Should Get the Discount – Husband or Wife?
If the spousal discount benefits only one person, you now need to decide whether the husband or the wife will take advantage of the deduction. In this case, it is preferable if the woman gets incentives from the spousal discount.
Based on demographic statistics in the US, women generally live longer compared to men. Also, studies show that women can handle stress more efficiently. They do not engage in risky behavior as much as men do. As a result, more women reach their latter years, which may mean more access to care and assistance. Women are also more vulnerable to certain aging-related illnesses, such as osteoporosis – an ailment that may need more monitoring during the later years of a person’s life.
Another way of considering wives to be covered is mainly this: they deserve the best care, after a lifetime of toiling for a family. Granted that the union between husband and wife makes them one, but the fairer gender still deserves a graceful and necessary access to assistance for everything they’ve done (from bearing children, keeping the boat called family from sinking, and the emotional rollercoaster they must have felt continuously being both a good follower and leader at home).
We’d Love to Hear Your Thoughts!
LTCI spousal discounts do offer significant benefits for individuals who hope to get the proper care that they deserve during their retirement years. What are other benefits that you can think of when it comes to this form of discount? Please share it with us by leaving a comment below.