Connecticut Partnership for Long Term Care Insurance Cost and Companies
Connecticut Long Term Care Insurance Review
This Connecticut Long Term Care Insurance Review explains long term care planning in the state of Connecticut. Here are the key points covered in this article:
- The risk of needing long term care
- Connecticut long term care costs
- The two different types of long term care insurance
- What’s the best age to buy long term care insurance
- Connecticut Partnership for Long Term Care
- How much does long term care insurance cost in Connecticut
- Long term care insurance companies in Connecticut
- Connecticut long term care insurance quotes and comparisons
Click To Get Connecticut Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Connecticut.
Connecticut 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.
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 Connecticut, the average cost for 3 years of long term care is $494,394 ($164,798 per year) at 2018 rates. That cost is projected to be $892,932 ($297,644 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 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.
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.
Types of Long Term Care Insurance in Connecticut
There are two types of insurance in Connecticut 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.
Connecticut Long Term Care Costs
Connecticuters need to know long term care costs when planning for future long term care needs. Connecticut’s cost of care and future cost projections, tell how much long term care protection you need.
The most up to date long term care cost study is from the Fortune 500 company, Genworth Financial. Their 2018 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 Connecticut:
Connecticut 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)|
|Connecticut State Median||$164,798||$151,475||$56,400||$52,624|
|New Haven Area||$160,053||$145,635||$41,220||$56,628|
|Rest of Connecticut||$191,421||$163,732||$43,200||$49,764|
Connecticut Partnership For Long Term Care
The Connecticut Partnership For Long Term Care is a three way partnership. It joins the State of Connecticut, long term care insurance companies and the federal Medicaid Program. “Partnership” long term care insurance policies must also meet certain federal and state requirements.
The purpose of the CT Partnership For Long-Term Care is to encourage people to plan ahead for how they will pay for future long term care needs. These 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 Connecticut’s Medicaid program (SoonerCare) if help under this program is ever needed.
There are several long term care insurance companies offering LTC insurance in Connecticut. The Connecticut 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. Long term care insurance policies sold under the Connecticut Partnership for Long Term Care Program are known as Partnership Policies.
Connecticut Partnership LTC Insurance Rates
Connecticut Partnership For Long Term Care Insurance policies cost about the same as other LTC insurance policies. But at some ages, there is mandatory inflation protection. This feature of CT Partnership for Long Term Care policies can limit your options when selecting policy benefits. So consumers should compare Connecticut Partnership LTC policies with non-Partnership policies. One of our long term care insurance professionals can illustrate the differences for you.
Connecticut Partnership for LTC Reciprocity
Let’s consider the situation where someone buys Partnership Policy in another State and then later moves to Connecticut. Reciprocity means they will not lose the special asset protection when they move to Connecticut. The State of Connecticut 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.
How Much Does LTC Insurance Cost in Connecticut?
How much does long term care insurance cost in Connecticut? The answer 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 quotes and comparisons specific to your situation.
Long Term Care Insurance Companies in Connecticut
Connecticut 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 offering coverage in Connecticut:
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 2018 (Genworth.com), site accessed 6/12/2019
3. Family Caregiver Alliance (www.caregiver.org), site accessed 6/12/2019