Long Term Care Insurance Kentucky Partnership Rates and Companies
Kentucky Long Term Care Insurance Review
This Kentucky Long Term Care Insurance Review covers long term care planning in the State of Kentucky. Here are the key points addressed in this article:
- The risk of needing long term care
- Kentucky long term care costs
- Types of long term care insurance in Kentucky
- What’s the best age to buy long term care insurance
- Kentucky Long Term Care Partnership Program
- How much does long term care insurance cost in Kentucky
- Long term care insurance companies in Kentucky
- Kentucky long term care insurance quotes and comparisons
Click To Get Kentucky Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Kentucky.
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 Kentucky, the average cost for 3 years of long term care is $273,750 ($91,250 per year) at 2019 rates. That cost is projected to be $494,424 ($164,808 per year) in 2039.2.
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 Kentucky
There are two types of insurance 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 policy by paying a one-time lump sum premium, or over a set period of time.
If long term care is never needed, the policy 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 long term care 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.
Kentucky Long Term Care Costs
Kentuckians need to know long term care costs when planning for future long term care needs. Kentucky’s current cost of care and future cost projections, tell 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. Their 2019 Cost of Care Survey includes long term care costs of more than 15,000 long term care providers across the country. Here is the current cost of long term care in Kentucky:
Kentucky Long Term Care Costs – 2019 (annual)
|Region||Nursing Home (private room)||Nursing Home (semi-private room)||Assisted Living (private room)||Home Health Aide (44 hours/wk)|
|Kentucky Median Cost||$91,250||$82,855||$41,958||$45,760|
Kentucky Long Term Care Partnership Insurance Program
The Kentucky Long Term Care Insurance Partnership is a three way partnership. It joins the State of Kentucky, long term care insurance companies and the federal Medicaid Program. Partnership long term care insurance policies must also meet certain federal and state requirements. Insurance policies sold under the Kentucky Long Term Care Insurance Partnership are known as Partnership Policies.
The purpose of the Kentucky Partnership for Long Term Care Insurance 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 Kentucky’s long term care Medicaid eligibility.
There are several long term care insurance companies offering LTC insurance in Kentucky. The Kentucky Long Term Care Insurance Partnership requires these companies offer specific policy benefits. This rule can help you choose the level of benefits to included in your long term care insurance policy.
Kentucky LTC Insurance Partnership Reciprocity
Let’s consider the situation where someone buys a Kentucky Long Term Care Insurance Partnership policy in another State and then later moves to Kentucky. Reciprocity means they will not lose the special asset protection when they move to Kentucky. The State of Kentucky would also recognize accumulated asset protection for Medicaid qualification, if the person were already receiving long term care benefits from their Long Term Care Partnership policy before relocating.
Kentucky Partnership LTC Insurance Rates
Kentucky Long Term Care Insurance Partnership policies are comparable in cost with other LTC insurance policies. But at some ages, there is mandatory inflation protection which can limit your options when selecting benefits. For this reason, consumers should compare Kentucky LTC Partnership policies with non-Partnership policies. One of our long term care insurance professionals can illustrate these differences for you.
How Much Does LTC Insurance Cost in Kentucky?
How much does long term care insurance cost in Kentucky? Your long term care insurance rates will depend 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 rates will also depend on the following benefits you select:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (if chosen)
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Long Term Care Insurance Companies in Kentucky
Kentucky 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’s a list of the best long term care insurance companies in Kentucky:
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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 2019 (Genworth.com), site accessed 12/23/2019
3. Family Caregiver Alliance (www.caregiver.org), site accessed 6/12/2019