Long Term Care Insurance Arizona Costs, Companies and Quotes
Arizona Long Term Care Insurance Review
This Arizona Long Term Care Insurance Review covers long term care planning in the state of Arizona. Here are the primary points discussed in this article:
- The risk of needing long term care
- The cost of long term care in Arizona
- Types of long term care insurance
- What’s the best age to buy long term care insurance
- The Arizona Long Term Care Partnership Program
- How much does long term care insurance cost in Arizona
- Long term care insurance companies in Arizona
- Comparing Arizona long term care insurance quotes
Click To Get Arizona Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Arizona
Arizona Long Term Care Planning
Long term healthcare services include nursing homes, assisted living facilities and home health care. The high cost of long term care services is one of the greatest risks to Arizonians savings and a secure retirement. 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.
A long term care plan 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. Long term care insurance 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 Arizona, the average cost for 3 years of long term care is $292,914 ($97,638 per year) at 2019 rates. That cost is projected to be $529,035 ($176,345 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 Cover Long Term Care Costs?
Medicare is the federal health insurance program for people over 65 and for some younger people with disabilities. But Medicare does not pay for most long term care services. Specifically, Medicare does not pay for custodial care which makes up more than 90% of long term care. An example of custodial care is when someone needs help with walking, bathing, eating, dressing and using the toilet.
Custodial care is also what people need most when they have a physical impairment from a stroke. Or, due to cognitive impairment from dementia or Alzheimer’s disease.
Arizona Long Term Care Insurance Options
There are two types of insurance in Arizona 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 LTC 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 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 health 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 have to 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.
Arizona Long Term Care Costs
The cost of long term care is a primary factor in long term care planning. Because, care costs tell you how much long term care protection you need. Genworth Financial, a Fortune 500 company, surveys long term care costs on a national level. Their 2019 Cost of Care Survey analyzed long term health care costs of over 15,000 long term care providers.
Here is the current cost of long term care in Arizona:
Arizona Long Term Care Costs – 2019 (Annual)
|Region||Nursing Home (private room)||Nursing Home (semi-private)||Assisted Living
|Home Health Aide
|Lake Havasu City||$90,885||$72,270||$48,000||$57,200|
|Sierra Vista Area||$87,600||$82,125||$52,920||$66,352|
Arizona Long Term Care Partnership Program
The Arizona Long Term Care Insurance Partnership is a special program for Arizona residents. It’s provided by the Arizona Long Term Care System (ALTCS) in conjunction with private long term care insurance companies. The insurance policies provided under this program are often referred to as Partnership policies.
Insurance companies providing Long Term Care Partnership policies are required by the Arizona LTC Partnership Program to offer specific benefits. This rule can help simplify choosing your long term care insurance benefits. Long Term Health Insurance Arizona Partnership policies also provide Asset Protection when determining Medicaid eligibility (medicaid spend down) under the Arizona Long Term Care System (ALTCS).
Arizona Long Term Care Partnership Rates
Arizona Long Term Care Partnership insurance rates are like other policies when designed the same. But, some required features of an Arizona LTC Partnership policy can limit flexibility in policy design. And this can increase your LTC insurance rates.
For this reason we recommend comparing non-Partnership insurance because a wider range of options may be available. Some of these options may be more suitable, depending upon personal circumstances. For example, selecting a higher Daily Benefit instead of mandatory Inflation Protection may be better for older individuals.
Arizona LTC Partnership Reciprocity
Arizona also honors LTC Partnership policies purchased in other states. This State Reciprocity allows your asset protection to move with you if you move in or out of Arizona.
How Much Does LTC Insurance Cost In Arizona?
How much does long term care insurance cost in Arizona? The answer: Arizona long term care insurance rates depend on your age and health history at the time you buy the insurance. Practically speaking, the younger and healthier you are the lower the cost. Your long term health insurance premiums in Arizona also depend on the following benefits you choose:
- 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 Arizona
Arizona 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 long term care insurance companies in Arizona:
Compare Long Term Care Insurance Costs and Options
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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 01/06/2020
3. Family Caregiver Alliance (www.caregiver.org), site accessed 6/12/2019