Hawaii Long Term Care Insurance Cost, Companies and Quotes
Hawaii Long Term Care Insurance Review
This Hawaii Long Term Care Insurance Review covers long term care planning in the state of Hawaii. Here are the key points in this article:
- Who needs long term care
- Does Medicare cover long term care
- When to buy long term care insurance
- Long term care insurance options
- Cost of long term care in Hawaii
- 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
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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.
Who Needs 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 $508,080 ($169,360 per year) at 2021 rates. That cost is projected to be $917,649 ($305,883 per year) in 2041.2.
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 Cover 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.
When 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.
Hawaii Long Term Care Insurance Options
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.
Cost of Long Term Care in Hawaii
Hawaiians should be aware of long term care costs when planning for future long term care needs. Because, Hawaii’s cost of care and future cost projections tell you how much long term care protection you need.
The most current study on the cost of long term care services is by the Fortune 500 company, Genworth Financial. The Genworth 2021 Cost of Care Survey includes long term care costs of more than 15,000 long term care providers. Here are the Hawaii long term care costs from that study.
Hawaii Long Term Care Costs – 2021 (annual)
|Region||Nursing Home (private room)||Nursing Home (semi-private room)||Assisted Living (private room)||Home Health Aide (44 hours/wk)|
|Hawaii State Median||$169,360||$150,015||$64,500||$68,640|
Hawaii Long Term Care Partnership Program
Hawaii does not have a Long Term Care Partnership program. Long Term Care Partnership Programs combine private long term care insurance with special access to Medicaid. The purpose of Long Term Care Partnership’s is to help people prepare for the possibility of needing nursing home care, assisted living care or home care.
A Hawaii Long Term Care Partnership Program (Partnership) would allow you to keep all, or part of your assets under the Medicaid program, if your long term care needs last longer than the benefits of your Partnership policy. Approximately 43 states now have Long Term Care Insurance Partnership Programs.
Long Term Care Partnership rates are typically like other policies. But the usually have mandatory age-related inflation protection which can increase the cost of insurance. So we recommend people compare Long Term Care Partnership policies with regular LTC insurance. Because, they may find a wider range of choices better suited to their needs. This includes hybrid long term care insurance options not available under Long Term Care Partnership Programs.
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 (optional)
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:
Compare Long Term Care Insurance Costs and Options
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1. 2022 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 02/18/2022
2. Cost of Care Survey 2021 (Genworth.com), site accessed 02/18/2022
3. Family Caregiver Alliance (www.caregiver.org), site accessed 02/18/2022