Purchasing long-term care insurance in Maryland isn’t a one-size-fits-all process, and the state has specific regulations and programs that can impact your decision-making. Understanding these nuances helps consumers choose the right policy and avoid common pitfalls.

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First, all long-term care insurance policies sold in Maryland must be approved by the Maryland Insurance Administration. This provides a layer of protection for policyholders, ensuring that insurance companies meet established standards for financial solvency and fair consumer practices. Policyholders receive a 30-day “free-look” period during which they can review the policy and cancel for a full refund if needed.

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Maryland also participates in the federally-supported Partnership for Long-Term Care program. Policies sold under this program must meet stricter consumer protection requirements, such as offering inflation protection. In return, buyers who use the benefits of a Partnership policy and need Medicaid later on can protect an equivalent amount in personal assets. For example, if your Partnership plan pays $150,000 in benefits, you can keep $150,000 in assets and still qualify for Medicaid assistance.

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Another key requirement in Maryland is that all long-term care insurance policies must offer non-forfeiture benefits—meaning, if you cancel or lapse your policy after a certain point, you may be entitled to a reduced benefit rather than losing all coverage. There are also stipulations for inflation protection, which is especially valuable for younger buyers who may not use the policy for decades.

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When shopping, consider insurers that are licensed in Maryland and have strong financial ratings from agencies like A.M. Best or Standard & Poor’s. Look for customer service reputation, claims history, and if they offer spousal or group discounts, which can significantly affect affordability.

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Finally, Maryland offers tax deductions or credits on long-term care insurance premiums, depending on your income. These tax advantages can make holding a policy more practical, especially when comparing premium costs year-over-year. Talk to a certified financial planner or tax advisor who understands Maryland-specific rules to ensure you're maximizing your benefits.

Understanding what you'd actually receive when you tap into a long-term care insurance policy is crucial. Maryland policies typically provide a daily or monthly benefit amount—commonly ranging from $100 to $300 per day—to reimburse policyholders for qualified long-term care services. You’ll also choose a benefit period—often between 2 to 5 years—and a total lifetime benefit cap.

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Common covered services include in-home care by a licensed caregiver, adult day services, assisted living facility costs, nursing home care, and, in many policies, respite care for family caregivers. Many Maryland policies also cover care coordination services, helping families connect with qualified care providers and manage the logistics of a long-term care plan.

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One of the most important components of a policy to consider is the elimination period—the waiting period before benefits begin, usually 30, 60, or 90 days. A shorter elimination period leads to higher premiums, but faster access to funds once care is needed.

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In terms of pricing, premiums in Maryland will vary widely based on your age, health, gender, and chosen benefits. For example, a 55-year-old Maryland resident might pay around $1,800 annually for a standard policy with reasonable daily benefits and a 3-year benefit period. Waiting until age 65 can increase that premium to $3,300 or more per year. Couples often receive lower rates or shared benefit pool options, which can stretch the value of the investment.

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It’s critical to balance cost with long-term value. Choosing inflation protection—such as a 3% compound increase—may increase premiums by 40–60%, but helps ensure your benefit amount keeps pace with future costs. Given Maryland’s rising long-term care expenses, inflation protection is strongly advised, particularly for those under age 60.

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Finally, consider the reimbursement vs. indemnity model. Most policies in Maryland are reimbursement-based, paying only up to the maximum benefit for actual expenses. A few indemnity-style policies pay a daily/monthly amount no matter what you spend, giving more flexibility but requiring careful planning.

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If you or a loved one have existing health conditions, consult with a broker experienced in Maryland LTC policies. They can guide you toward insurers with more lenient underwriting or explore hybrid policies that combine life insurance and long-term care features for broader security.