Long Term Care Insurance Florida Partnership Providers and Costs
Florida Long Term Care Insurance
This Florida Long Term Care Insurance Review covers long term care planning in the state of Florida. Here are the key points in this article:
- Who needs long term care?
- Does Medicare cover long term care?
- The best age to buy long term care insurance.
- Florida long term care insurance options.
- Long term care costs in Florida.
- Florida Long Term Care Partnership Program.
- Long term care insurance providers in Florida.
- How much does long term care insurance cost?
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Florida Long Term Care Planning
Planning ahead for future long term care needs is a key part of retirement planning. 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.
Who Needs 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 Florida, the average cost for 3 years of long term care is $353,412 at 2020 rates ($117,804 per year). The cost is projected to be $638,301 by 2040 ($212,767 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 Should You 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.
Long Term Care Insurance Options
There are two types of insurance in Florida 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
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 Costs
This Florida long term care cost data can help you decide how much insurance you need. And it compares nursing facility, assisted living and home care costs. Here is the 2020 cost of long term care in the State of Florida.2
Florida Long Term Care Rates – 2020 (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||$117,804||$104,025||$44,400||$51,480|
|Cape Coral Area||$114,793||$104,755||$54,000||$57,200|
|North Port Area||$125,560||$110,230||$46,650||$54,912|
|Palm Bay Area||$119,538||$110,230||$49,200||$52,624|
|Port St. Lucie||$112,420||$100,087||$52,785||$50,908|
Florida Long Term Care Partnership Program
The Florida Long Term Care Partnership Program joins private long term care insurance with special access to Medicaid. The Florida Long Term Care Partnership Program can help you prepare for the possibility of needing nursing home care, assisted living care or home care.
A Florida Long Term Care Partnership Program (LTCP) policy allows you to keep all, or part of your assets under the Florida Medicaid program, if your long term care needs last longer than the benefits of your Partnership policy.
Florida Long Term Care Insurance Partnership Program rates are like other policies. But the mandatory age-related inflation protection can increase the cost of insurance. So we recommend you compare Florida Long Term Care Insurance Partnership Program policies with regular LTC insurance. You may find options that better fit your needs. This includes hybrid long term care insurance that’s not available under the Florida Long Term Care Partnership Program.
Florida Long Term Care Partnership Reciprocity
Reciprocity applies to those buying long term care insurance in another state under their LTC Partnership program. This reciprocity allows them to keep the special asset protection when moving to Florida. The State of Florida also recognizes accumulated asset protection for Medicaid qualification when someone is receiving benefits from a Partnership long term care policy before moving to Florida.
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:
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1. 2020 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 03/17/2021
2. Cost of Care Survey 2020 (Genworth.com), site accessed 03/17/2021
3. Family Caregiver Alliance (www.caregiver.org), site accessed 01/17/2021