Indiana Partnership Long Term Care Insurance Companies and Costs
Indiana Long Term Care Planning
Planning ahead for future long term care needs is key to protecting your retirement assets. 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.
Besides protecting your retirement assets, you’ll get the peace of mind knowing you can cover the cost of long term care if you need it 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.
Who Needs Long Term Care Insurance
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 Indiana, the average cost for 3 years of long term care is $313,215 ($104,405 per year) at 2021 rates. That cost is projected to be $565,701 ($188,567 per year) in 2041.2
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 those over 65 and some younger people with disabilities. 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 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 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.
Indiana Long Term Care Insurance Options
There are two types of long term health insurance in Indiana. 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.
Indiana Long Term Care Costs
This Indiana 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 2021 cost of long term care in the State of Indiana.2
Indiana Long Term Care Costs – 2021 (Annual)
|Region||Nursing Home (private room)||Nursing Home (semi-private room)||Assisted Living Facility (private room)||Home Health Aide (44 hours/wk)|
|Michigan City Area||$108,405||$101,470||$43,401||$67,496|
|South Bend Area||$111,690||$100,393||$39,690||$68,068|
Indiana Partnership Long Term Care Insurance
Indiana Partnership Long Term Care Insurance (ILTCIP) 4 is a special Indiana program combining private long term care insurance with special access to Medicaid. The Indiana Partnership Long Term Care Insurance Program helps Indianans prepare for the possibility of needing nursing home care, assisted living care or home care.
An Indiana Partnership Long Term Care Insurance (Partnership) policy allows you to keep all, or part of your assets under the Medicaid program, if your long term care needs last longer than the benefits of your Partnership policy.
Indiana Partnership Long Term Care Insurance rates are like other policies. But the mandatory age-related inflation protection can increase the cost of insurance. So we recommend you compare Indiana Partnership Long Term Care Insurance policies with regular LTC insurance. Because, you may find a wider range of choices better suited to your needs. Including hybrid long term care insurance options not available with Indiana Partnership Long Term Care Insurance.
Indiana Partnership LTC Insurance Reciprocity
The State of Indiana is a member of the National Reciprocity Compact. This grants Medicaid asset protection with other states Partnership Programs. An example is buying a Partnership policy under another state’s Partnership Long Term Care program.
Reciprocity means you will not lose your asset protection if you move to Indiana. If you’re already receiving LTC Partnership Program insurance benefits before moving to Indiana, the State of Indiana will recognize asset protection for Medicaid qualification.
How Much Does LTC Insurance Cost in Indiana?
How much does long term care insurance cost in Indiana? The cost of long term care insurance in Indiana depends on your age and health history at the time you buy the insurance.
Generally, the younger and healthier you are the lower the cost. Your Indiana 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 (if chosen)
Long Term Care Insurance Companies in Indiana
Indiana 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 the best long term care insurance companies in Indiana:
Compare Long Term Care Insurance Costs and Options
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Compare Indiana Long Term Care Insurance Companies, Quotes and Policy Costs. We’ll help you compare the companies and plan options side by side. We also provide detailed comparisons to the AARP LTC insurance offering.
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1. 2022 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 03/15/2022
2. Cost of Care Survey 2021 (Genworth.com), site accessed 03/15/2022
3. Family Caregiver Alliance (www.caregiver.org), site accessed 03/15/2022
4. This web page is not endorsed by or affiliated with the State of Indiana