A question I am often asked is:  “If I buy a long-term care insurance policy with a 3-year Benefit Period, what happens if I go on claim and use up all of the policy’s benefits, but I continue to need care?  Can I buy another policy after the first policy runs out of benefits?”

Answer: If you go on claim and receive benefits totaling your “Policy Limit” and you still need care, you would not be able to purchase another long-term care policy or buy more coverage.  Since you still need care, you would be uninsurable and unable to qualify for another policy.

This is why it is important to consider buying a policy that qualifies under your state’s Long-Term Care Partnership program. If your policy is a “Partnership-Qualified Policy” you may be able to protect some, if not all, of your assets from Medicaid spend down and still have the state contribute towards the cost of your care.