Indiana Long Term Care Insurance Partnership Companies and Costs
Indiana Long Term Care Insurance Review
This Indiana Long Term Care Insurance Review covers long term care planning in the state of Indiana. Here are the primary points reviewed in this article:
- The risk of needing long term care
- The cost of long term care in Indiana
- Types of long term care insurance
- What’s the best age to buy long term care insurance
- The Indiana Long Term Care Insurance Program (ILTCIP)
- How much does long term care insurance cost in Indiana
- Long term care insurance companies in Indiana
- Indiana long term care insurance quotes and comparisons
Click To Get Indiana Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Indiana.
Indiana 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.
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 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.
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 Indiana, the average cost for 3 years of long term care is $296,745 ($98,915 per year) at 2018 rates. That cost is projected to be $535,953 ($178,651 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?
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.
Types of Long Term Care Insurance in Indiana
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 – 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.
Indiana Long Term Care Costs
Listed below are Indiana long term care costs from Genworth’s 2018 Cost of Care Survey. Their survey looks at national long term care costs for over 15,000 long term care providers in 440 regions. It’s important for Indiana residents know local and regional long term care costs. Because, these costs are a primary factor when deciding how much long term care protection you need.
Here is the current cost of long term care in Indiana:
Indiana Long Term Care Costs – 2018 (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||$104,051||$95,265||$44,100||$52,624|
|South Bend Area||$112,603||$96,360||$55,500||$52,624|
|Rest of Indiana||$85,045||$74,460||$43,380||$49,192|
Indiana Long Term Care Insurance Partnership
The Indiana Long Term Care Insurance Program 4. (ILTCIP) is a partnership between the State of Indiana and private long term care insurance companies. The Indiana Partnership for Long Term Care lets Indianans shield a part or all their assets and still qualify for Medicaid. This feature works if your long term care needs extend beyond what is payable by your long term care insurance.
Private long term care insurance policies sold under the Indiana Long Term Care Partnership Program are termed Partnership Policies. Indiana Partnership long term care insurance companies must offer specific policy benefits. This rule of the Indiana LTC Partnership can help take the guesswork out of choosing your LTCi protection. Section 6021 of the 2005 Deficit Reduction Act allows for Qualified State Long Term Care Insurance Partnerships.
Indiana Long Term Care Insurance Partnership Costs
Indiana Long Term Care Partnership program insurance costs about the same as other LTCi policies. This assumes the insurance policy’s contain similar benefits. But the required features of an Indiana Partnership policy can limit your options. So it’s smart to also consider non-Partnership policies. In some cases a wider range of choices are available and better for a particular situation. One of our licensed professionals can illustrate these differences for you.
Indiana LTC Partnership Program 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 an LTCi Partnership Program policy under another state’s Long Term Care Partnership 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 answer: It 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 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 costs and comparisons specific to your situation.
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 long term care insurance companies offering coverage in Indiana:
Compare Long Term Care Insurance Costs and Options
Our 25 years of LTC planning experience will save you time and money!
One Stop Shopping
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.
Compare With an Independent Agent
We impartially shop the market of top-rated insurance companies and help you find not only the best rate, but the best company. We’ll supply you with rates, ratings, and reviews of the companies that sell these types of policies.
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
4. This web page is not endorsed by or affiliated with the State of Indiana