Hawaii Long Term Care Insurance Cost, Companies and Quotes
Hawaii Long Term Care Insurance Review
This Hawaii Long Term Care Insurance Review explains long term care planning in the state of Hawaii. Here are the key points covered in this article:
- The risk of needing long term care
- Hawaii long term care costs
- The two different types of long term care insurance
- The best age to buy long term care insurance
- Hawaii Long Term Care Partnership Program
- How much does long term care insurance cost in Hawaii
- Long term care insurance companies in Hawaii
- Hawaii long term care insurance quotes and comparisons
Click To Get Hawaii Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Hawaii.
Hawaii Long Term Care Planning
Planning ahead for future long term care needs is a key part of retirement planning. Many people have had first-hand experience with a loved one who needed long term care services. These experiences underscore the reality of the financial and emotional stress when a loved one needs long term care.
Long term care insurance can protect your retirement assets. Plus it gives you the peace of mind, knowing you can cover the cost of long term care if you need it in the future. A long term care plan also protects your family from having to be caregivers. And it enables you to choose where you’ll receive any care needed in later years.
What is The Risk of Needing of Long Term Care?
Someone turning age 65 today has about a 70 percent chance of needing some type of long term care during their lifetime. While one-third may never need long term care, 20 percent will need it for longer than 5 years. The average length of time people need long term care services is 3 years.1.
In Hawaii, the average cost for 3 years of long term care is $491,655 ($163,885 per year) at 2018 rates. That cost is projected to be $887,985 ($295,995 per year) in 2038.2.
And it’s not only seniors that need long term care. Over 35 percent of people currently receiving long term care services are between 18 and 64.3.
Does Medicare Pay for Long Term Care?
Medicare is the federal health insurance program for those over 65 and some younger people with disabilities. Medicare does not pay for custodial care which makes up more than 90% of all long term care services.
An example of custodial care is when someone needs help with walking, bathing, eating, dressing or using the toilet. Custodial care is what people need most when they have a physical impairment from a stroke. Or, due to cognitive impairment from dementia or Alzheimer’s disease. Don’t make the mistake of thinking Medicare covers long term care costs. It doesn’t.
Types of Long Term Care Insurance in Hawaii
There are two types of insurance in Hawaii that pay for long term care costs. And each type of policy has its specific advantages. One of our licensed professionals can provide more details to help you decide which is best for you.
Traditional Long Term Care Insurance – You pay an annual premium, and if you need long term care due to a cognitive or physical impairment, the policy pays for your care. Traditional LTC insurance policies make up about half of all long term care policies sold.
Hybrid Long Term Care Insurance – Hybrid long term care policies combine the benefits of life insurance, or an annuity, with long term care benefits. You can buy a hybrid long term care insurance by paying a one-time lump sum premium, or over a set period of time.
If long term care is never needed, life insurance with a long term care rider works much like a traditional life insurance policy. It would then pay a death benefit to your beneficiary when you die. And the death benefit is often similar to the amount paid for the policy. But if you need long-term care, the amount of money available can exceed the death benefit or annuity value, often several times over, offering tremendous leverage of premium dollars.
The Best Age to Buy Long Term Care Insurance
Like most advisers, we recommend buying long term care insurance in your fifties or early sixties. The primary reasons for this recommendation are:
- The younger you are when you buy a policy, the lower the annual premiums.
- By the time you reach your mid sixties, you’re more likely to have a medical condition that makes you ineligible for a preferred-health discount, or makes it tough to get coverage at all.
- Even though you’ll pay premiums a longer period of time, you’ll typically pay less overall than someone buying at an older age.
So it almost never pays to wait. And, while you’re waiting, you’re uninsured. If an accident or illness happens causing you to need long-term care, you’ll have to pay out of pocket.
Do I Need Long Term Care Insurance?
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. The insurance companies will examine your health history before providing you a long term care policy. This health qualification process makes it important to plan ahead. This means buying long term care insurance when you’re somewhere between the ages of 50 and 70 and while in good health.
Hawaii Long Term Care Costs
Hawaiians should be aware of long term care costs when planning for future long term care needs. Hawaii’s cost of care and future cost projections show how much long term care protection to buy.
A comprehensive study on national long term care costs is from LifePlans, Inc. for John Hancock Life Insurance Company. Their 2016 Cost of Care Study surveyed over sixteen thousand long term care providers across the nation. John Hancock Life Insurance Company provides a 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 Hawaii. 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 services is by the Fortune 500 company, Genworth Financial. The Genworth Financial 2018 Cost of Care Survey includes long term care costs of more than 15,000 long term care providers. Following are Hawaii long term care costs from that study.
Hawaii Long Term Care Costs – 2018 (annual)
|Region||Nursing Home (private room)||Nursing Home (semi-private room)||Assisted Living (private room)||Home Health Aide (44 hours/wk)|
|Hawaii State Median||$163,885||$146,000||$66,000||$68,460|
|Rest of State||$171,550||$167,900||$54,000||$68,640|
Hawaii Long Term Care Insurance Partnership
Approximately 43 states now have Long Term Care Insurance Partnership Programs. But, Hawaii does not have a Long Term Care Insurance Partnership. It is section 6021 of the 2005 Deficit Reduction Act that allows for Qualified State LTC Partnerships. This permits States with approved State plan amendments to exclude from estate recovery the amount of LTC benefits paid under a qualified LTC insurance policy. These long term care insurance policies sold under Long-Term Care Insurance Partnership Programs are known as “Partnership Policies”.
Long Term Care Insurance Partnership Programs are three way partnerships. They join The State, 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 purpose of Long-Term Care Insurance Partnerships is to encourage people to plan ahead for how they will pay for future long term care needs. Partnership LTCi Policies provide an extra level of protection, when compared to a regular long term care insurance policy. In particular, such policies permit individuals to protect assets from spend-down requirements under the state’s Medicaid program, if help under Medicaid is ever needed.
There are several long term care insurance companies offering LTC insurance in Hawaii. Long-Term Care Insurance Partnership policies often require insurance companies to offer specific policy benefits. This rule can also limit consumer choices in benefit design, but this is not a concern in Hawaii.
Long Term Care Insurance Partnership Reciprocity
Consider when someone acquires Long Term Care Partnership insurance and they later move to another state that also has an LTC Partnership Program. Reciprocity allows them not to lose the special asset protection when they move.
If already receiving long term care benefits before moving, the new home state also recognizes accumulated asset protection for Medicaid qualification.
How Much Does LTC Insurance Cost in Hawaii?
How much does long term care insurance cost in Hawaii? The answer: 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 (a deductible in days)
- Inflation Protection (if chosen)
Complete the form on this page to request long term care insurance costs and comparisons specific to your situation.
Long Term Care Insurance Companies in Hawaii
Hawaii long term care insurance is available from several well respected insurance companies. We compare these companies to find you the best protection at the lowest cost. Here is a list of the best long term care insurance companies in Hawaii:
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1. 2019 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 06/12/2019
2. Cost of Care Survey 2018 (Genworth.com), site accessed 6/12/2019
3. Family Caregiver Alliance (www.caregiver.org), site accessed 6/12/2019