Long Term Care Insurance Colorado Companies, Quotes and Costs
Colorado Long Term Care Insurance Review
This Colorado Long Term Care Insurance Review covers long term care planning in the state of Colorado. Here are the primary points covered in this article:
- The risk of needing long term care
- Colorado long term care costs
- The two types of long term care insurance
- The best age to buy long term care insurance
- Colorado Long Term Care Partnership Program
- Long term care insurance companies in Colorado
- How much does long term care insurance cost in Colorado
- Comparing Colorado long term care insurance quotes
Click To Get Colorado Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Colorado.
Colorado Long Term Care Planning
Planning ahead for future long term care needs is a critical 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.
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 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.
Does Medicare Pay For Long Term Care?
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.
The Risk of Needing 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 Colorado, the average cost for 3 years of long term care is $323,988 ($107,996 per year) at 2018 rates. That cost is projected to be $585,159 ($195,053 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.
Types of Long Term Care Insurance in Colorado
There are two types of insurance in Colorado 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 long term care 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, asset based long term care policy works much like traditional life insurance. 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.
What’s 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 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.
Colorado Long Term Care Costs
The largest long term care cost study is by Genworth Financial, a Fortune 500 company. Their national 2018 Cost of Care Survey included over 15,000 long term care providers. It’s important to know these costs because it’s a primary factor in choosing how much long term care protection you need.
Here is the current cost of long term care in Colorado:
Colorado Long Term Care Costs – 2018 (annual) |
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| Region | Nursing Home (private room) | Nursing Home (semi-private room) | Assisted Living (private room) | Home Health Aide (44 hours/wk) |
| Colorado Median | $107,996 | $94,703 | $48,000 | $58,916 |
| Boulder | $123,304 | $112,110 | $60,000 | $64,064 |
| Colorado Springs | $105,120 | $93,258 | $58,500 | $57,200 |
| Denver Area | $114,245 | $100,375 | $56,400 | $62,920 |
| Fort Collins | $102,565 | $98,368 | $47,400 | $59,785 |
| Grand Junction | $111,497 | $92,882 | $40,200 | $54,912 |
| Greeley | $112,238 | $102,930 | $44,040 | $55,484 |
| Pueblo | $108,770 | $91,250 | $48,000 | $51,480 |
| Rest of State | $91,250 | $83,950 | $45,000 | $57,200 |
Colorado Long Term Care Partnership Program
The Colorado Long Term Care Insurance Partnership (LTCP) program is a special program combining private long term care insurance coverage with special access to Medicaid. The LTCP program allows Colorado residents to shield a portion or all of their wealth (assets) and still be able to qualify for Medicaid if their long term care needs extend beyond what is payable by their private long term care insurance policy.
The private long term care insurance companies in Colorado are mandated by the Colorado Long Term Care Partnership Program to offer a very specific level of benefits. This is a consumer protection feature that helps take the guesswork out of choosing long term care insurance coverage. Section 6021 of the 2005 Deficit Reduction Act allows for Qualified State Long Term Care Partnerships. The private long term care insurance Colorado companies in conjunction with the Colorado Long Term Care Partnership program provide long term care policies that are commonly referred to as Partnership Policies.
A Long Term Care Insurance Colorado Partnership Program insurance policy is priced similar to other policies when designed with similar benefits. However, the mandated features of the Colorado Long Term Care Partnership Program policies can limit flexibility in policy design. Thus it may be smart to also compare non-Partnership long term care policies. Because, a wider range of benefits may be available and more suitable for your situation. By working with an agent who specializes in long term care insurance you can have these options illustrated for you.
Colorado Long Term Care Partnership Reciprocity
Reciprocity means that, if you purchase a qualifying long term care insurance partnership program policy in another State from its Long Term Care Partnership program, you will not lose your asset protection if you move to Colorado. The State of Colorado will also recognize accumulated asset protection for Medicaid qualification if you’re already receiving benefits under your Partnership long term care policy before you move to Colorado.
How Much Does LTC Insurance Cost In Colorado?
How much does long term care insurance cost in Colorado? The answer: It depends 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 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 Colorado
Colorado 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 Colorado:
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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