Long Term Care Insurance Florida Partnership Providers and Costs
Florida Long Term Care Insurance
Planning ahead for future long term care needs is key to having a secure retirement. Many people have had first-hand experience with a loved one who needed long term care. This exposure highlights the financial and emotional stress of someone needing 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 allows you to choose where you’ll receive any care needed in later years.
Probability 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
As of 2021, the average cost for 3 years of long term care in Florida is $346,569 at 2021 rates ($115,523 per year). The cost is projected to be $625,941 by 2041 ($208,647 per year).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 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. 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 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.
Florida Long Term Care Insurance Options
There are two types of insurance in Florida that pay for long term care. Each type of policy has its specific advantages and one of our licensed professionals can provide 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. Florida Long-Term Care Insurance Partnership policies are in this category. Currently, traditional LTC insurance policies make up about half of all long term care policies sold.
Hybrid Long Term Care Insurance
A hybrid long term care insurance policy combines 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.
Florida Long-Term Care Partnership Program
Florida Long-Term Care Partnership Program policies are available. This program joins private long term care insurance with special access to Medicaid. The goal of the Florida Long-Term Care Partnership is to encourage you to protect yourself from the possibility of needing Nursing Home Care, Assisted Living Care or Home Care.
Special asset protection benefits of a Florida Long-Term Care Partnership policy allow you to keep all, or part of your assets under the Florida Medicaid program. This applies if your long term care needs last longer than the benefits of your Partnership policy.
The cost of Florida Long-Term Care Partnership policies is like regular LTC coverage. But we still recommend you compare Florida Long-Term Care Insurance Partnership policies with non-Partnership policies. Doing so may reveal other options better suited to your needs. This includes Hybrid Long-Term Care Insurance policies not available under the Florida Long-Term Care Partnership Program.
Florida Long-Term Care Partnership Reciprocity
Reciprocity applies if you buy a qualifying Long-Term Care Partnership policy in another state and later move to Florida. Reciprocity allows you to keep the special asset protection when you move to Florida. The State of Florida would also recognize accumulated asset protection for Medicaid qualification if you’re receiving benefits from your Partnership policy before moving to Florida.
Florida Long Term Care Costs
These 2021 Florida long term care costs can help you decide how much insurance you need. Here we compare Nursing Facility, Assisted Living and Home Care Costs. across Florida.2
Florida Long Term Care Rates – 2021 (annual)
|Region||Nursing Home (private room)||Nursing Home (semi-private room)||Assisted Living Facility (private room)||Home Health Aide (44 Hours/week)|
|Florida State Median||$115,523||$103,843||$48,000||$57,200|
|Cape Coral Area||$120,633||$110,230||$52,005||$62,348|
|North Port Area||$127,385||$113,880||$49,740||$68,640|
|Palm Bay Area||$127,203||$116,253||$53,532||$57,200|
|Port St. Lucie||$107,310||$97,970||$45,150||$57,200|
How Much Does LTC Insurance Cost In Florida?
How much does long term care insurance cost in Florida? Long term care insurance rates depend on your age and health history at the time you buy the insurance. Generally, the younger and healthier you are, the lower the cost.
Long term care insurance premiums 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 Providers in Florida
Florida long term care insurance is available from several well respected insurance companies. We compare these providers to find you the best protection at the lowest cost. Here’s a list of the best long term care insurance companies in Florida:
Get Florida Long Term Care Insurance Quotes!
Our 30+ years of LTC planning experience will save you time and money!
One Stop Shopping
Compare Florida’s Long Term Care Insurance Providers, Quotes and Policy Costs. We’ll help you compare the companies and plan options side by side. And we compare to the AARP LTC insurance offering.
Compare With an Independent Agent
We impartially shop the market of top-rated insurance providers to help you find the best rate and company. We’ll supply you with rates, ratings, and reviews of the companies that sell these types of policies.
1. 2022 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 11/18/2022
2. Cost of Care Survey 2021 (Genworth.com), site accessed 11/18/2022
3. Family Caregiver Alliance (www.caregiver.org), site accessed 11/18/2022