Long Term Care Insurance Alabama Partnership Companies & Rates
Alabama Long Term Care Insurance Partnership
The Alabama Long Term Care Insurance Partnership Program is a three way partnership. It joins the State of Alabama, long term care insurance companies and the federal Medicaid Program. “Partnership Program” long term care insurance policies must also meet certain federal and state requirements.
The underlying purpose of the Alabama Long-Term Care Insurance Partnership Program is to encourage people to plan ahead for how they will pay for future long term care needs. These Partnership LTCi Policies can provide an extra level of protection compared to traditional long term care insurance policies. Specifically, Partnership policies permit individuals to protect assets from spend-down requirements under Alabama’s Medicaid program if assistance under this program is required.
Several long term care insurance companies offer LTC insurance in Alabama. The Alabama Long-Term Care Insurance Partnership Program requires these companies offer specific policy benefits. This rule can be helpful in choosing the benefit levels of your long term care insurance policy. Long term care insurance policies sold under the Long-Term Care Insurance Alabama Partnership are referred to as “Partnership Policies”.
Who Needs Long Term Care Services?
The U.S. Department of Health and Human Services says about seventy percent of people over age 65 will need long term care during their lifetime. But the need for long term care services is not limited to seniors. There are now forty percent of people currently receiving long term care that are between the ages of 18 and 64. Long term care insurance planning is critical to a financial plan. Critical because traditional health insurance and Medicare do not pay for most long term care services.
To buy long term care insurance, individuals must be enjoying good health. And this health qualification aspect makes it important to plan ahead. In general term, this means buying long term care insurance when you’re somewhere between age 50 and 70 and enjoying good health.
Alabama Long Term Care Costs
Alabamians need to be aware of long term care costs when planning for their future long term care needs. Alabama’s current cost of care and future cost projections indicate how much long term care protection to have in your retirement plan.
An extensive study on national long term care costs is done by LifePlans, Inc. for John Hancock Life Insurance Company. Their most recent Cost of Care Study surveyed over sixteen thousand long term care providers across the nation. John Hancock Life Insurance Company provides a useful Cost of Care Calculator. The calculator adjusts long term care costs for inflation. This allows you to better estimate future long term care costs in Alabama. John Hancock long term care insurance is underwritten by John Hancock Life Insurance Company, one of the largest insurance companies in the United States.
Another study on the cost of long term care is from the Fortune 500 company, Genworth Financial. The Genworth Financial 2017 Cost of Care Survey includes long term care costs of more than 15,000 long term care providers. Following are long term care costs for cities in Alabama from that survey.
Alabama Long Term Care Costs – 2017 (annual)
|Region||Nursing Home (private room)||Nursing Home (semi-private room)||Assisted Living (private room)||Home Health Aide (44 hours/wk)|
|Alabama Median Cost||$77,563||$73,000||$36,684||$38,553|
|Rest of State||$73,000||$73,000||$32,250||$34,320|
Long Term Care Insurance Alabama Reciprocity
Let’s consider the scenario where someone buys a Long Term Care Partnership policy in another State and later moves to Alabama. Reciprocity means they will not lose the special asset protection when they move to Alabama. The State of Alabama would also recognize accumulated asset protection for Medicaid qualification, if the person were already receiving benefits from their Long Term Care Partnership policy before relocating.
How Much Does Long Term Care Insurance Cost?
How much does long term care insurance cost in Alabama? The answer is that it depends on your age and health history at the time you buy the insurance. Generally speaking, the younger and healthier you are the lower the cost. Your long term care insurance premiums will also depend on the following benefits you select:
- Benefit Period
- Daily Benefit
- Elimination Period
- Inflation Protection (if chosen)
Alabama Long Term Care Insurance Rates
Long Term Care Insurance Alabama Partnership policies cost about the same as other LTC insurance policies. But at some ages, there is mandatory inflation protection. This feature of Alabama Long Term Care Insurance Partnership Program policies can limit your choices when selecting policy benefits. Thus we recommend consumers compare Alabama LTC Partnership policies with non-Partnership policies. To best understand the differences, we encourage you to work with an insurance agent who specializes in Long Term Care Insurance.
How to Buy Alabama Long Term Care Insurance
Long Term Care Insurance Alabama Partnership policies are offered by several long term care insurance companies. And insurance agents offering LTC Partnership policies must maintain a special certificate of training. Here is a list of Alabama long term care insurance providers:
Get Alabama Long Term Care Insurance Quotes!
We’ve specialized in long term care planning since 1990 and can help with your long term care planning. We give you professional, unbiased advice to help you decide if Long Term Care Insurance is right for you. Our independent representatives shop all the major long term care insurance companies in Alabama and give you:
- Price comparisons customized for your specific needs from respected companies like Genworth Financial, Mutual of Omaha, Transamerica, LifeSecure and other well respected insurance companies.
- Benefit comparisons of each insurance company’s policy. This comparison examines both the similarities and differences of each long term care plan. We also give you comparisons to the AARP Long Term Care Plan and the Federal Long Term Care Plan.
- Financial stability reviews of each long term care insurance provider’s financial ratings, asset base and claims paying experience.