Long Term Care Insurance Georgia Partnership Costs, Companies, Quotes
Georgia 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 services. These experiences underscore the reality of the financial and emotional stress when a loved one needs long term care.
Long term care insurance can protect your retirement assets. And give 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. Plus it enables you to choose where you’ll receive any care needed in later years.
Here are the primary topics covered in this article:
- The risk of needing long term care
- Georgia long term care costs
- The two different types of long term care insurance
- What’s the best age to buy long term care insurance
- Georgia’s Long Term Care Partnership Program
- The cost of long term care insurance in Georgia
- Long term care insurance companies in Georgia
- Georgia long term care insurance quotes and comparisons
Click To Get Georgia Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Georgia.
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 Georgia, the average cost for 3 years of long term care is $243,639 ($81,213 per year) at 2018 rates. That cost is projected to be $440,040 ($146,680 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 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 all long term care services. An example of custodial care is when someone needs help with walking, bathing, eating, dressing or 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.
Types of Long Term Care Insurance in Georgia
There are two types of insurance in Georgia 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 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 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.
Georgia Long Term Care Costs
Genworth Long Term Care Insurance conducts a national study on the cost of long term care services. The Genworth Financial 2018 Cost of Care Survey included over 15,000 long term care providers in more than 440 regions. Another extensive study is from John Hancock Life Insurance Company. The John Hancock Cost of Care Calculator examines Georgia long term care costs by region. It provides the option to adjust long term care costs for inflation based on past indicators.
Georgia long term care costs are important to factor into your long term care planning. The cost of long term care is a primary indicator in choosing how much long term care insurance to include in your retirement plan.
Here is the current cost of long term care in Georgia:
Georgia 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)|
|Rest of Georgia||$76,194||$70,993||$30,240||$41,184|
Georgia Long Term Care Insurance Partnership Program
The Long Term Care Insurance Georgia Partnership (Partnership) is a special Department of Community Health program combining private long term care insurance with Medicaid asset protection. The Georgia LTC Partnership helps Georgians prepare for the possibility of needing nursing home care, assisted living care or home care. The Long Term Care Insurance Georgia Partnership allows those with a Partnership insurance policy to keep all or part of their assets under the Medicaid program, if their long term care needs last longer than the benefits of their insurance policy.
The Georgia Long Term Care Partnership requires long term care insurance companies offering Partnership LTC policies in Georgia to offer specific benefits. This rule can help simplify choosing your long term care insurance coverage. Long Term Care Insurance Georgia Partnership policies have premiums like Non-Partnership policies when designed with similar benefits. But the required benefits of a Georgia Long Term Care Partnership policy can limit flexibility with benefit design. So it’s smart to also consider Non-Partnership LTC insurance policies as they may provide a wider range of benefit options. This wider range of options may provide more affordable long term care insurance. One of our licensed professionals can illustrate the differences for you.
Section 6021 of the 2005 Deficit Reduction Act allows for Qualified State Long Term Care Partnerships. Georgia Long Term Care Partnership insurance policies are often referred to as Partnership Policies.
Long Term Care Insurance Georgia Reciprocity
Reciprocity allows you to buy a qualifying Long Term Care Partnership insurance policy in another state and maintain its unique asset protection if you move to Georgia. The State of Georgia will also recognize accumulated asset protection for Medicaid qualification if you’re already receiving benefits under your Long Term Care Partnership insurance policy before moving to Georgia. The majority of states do have reciprocity, but not all states are included in this reciprocity pact.
How Much Does LTC Insurance Cost In Georgia?
How much does long term care insurance cost in Georgia? The answer: It depends on your age and health history at the time you buy insurance. In general, the younger and healthier you are the lower the premium. The cost will also depend on the following benefits you select:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (if chosen)
Long Term Care Insurance Companies In Georgia
Georgia 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 Georgia:
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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