Long Term Care Insurance Montana Partnership Costs & Companies
Montana 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. 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 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 Montana, the average cost for 3 years of long term care is $290,175 ($96,725 per year) at 2021 rates. That cost is projected to be $524,088 ($174,696 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.
Montana Long Term Care Insurance Options
There are two types of insurance in Montana 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
These asset based 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 insurance 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.
Long Term Care Costs In Montana
Montana long term care costs are important for Montanans to consider, because the local cost of long term care is a key element in deciding how much long term care protection you need.
The most current study on the cost of long term care is done annually by Genworth Financial, a Fortune 500 company. The Genworth Financial 2021 Cost of Care Survey encompasses long term care costs nationally and surveyed over 15,000 long term care providers in 441 regions. Here is the current cost of long term care in Montana:
Montana Long Term Care Costs – 2021 (annual)
|Region||Nursing Home (private room)||Nursing Home (semi-private room)||Assisted Living (private room)||Home Health Aide (44 hours/wk)|
|Montana Median Cost||$96,725||$90,885||$53,400||$64,064|
Montana Long Term Care Partnership Program
The Montana Long Term Care Partnership Program is a special Montana program combining private long term care insurance with special access to Medicaid. The Montana Long Term Care Partnership Program helps Montanans prepare for the possibility of needing nursing home care, assisted living care or home care.
A Montana Long Term Care 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.
Hybrid Long-Term Care Insurance options are not available under the Montana Long-Term Care Partnership Program.
Montana Long Term Care Partnership Reciprocity
If you purchase a qualifying partnership long term care policy in another State under their Long Term Care Partnership program, you will not lose your asset protection if you move to Montana. The State of Montana will also recognize accumulated asset protection for Medicaid qualification should you already be receiving long term care benefits from your Long Term Care Partnership policy before moving to Montana. The following link provides an excellent resource on Partnership Long Term care programs in Montana and other states.
Long Term Care Insurance Cost in Montana
Your Montana long term care insurance rates will 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. Your long term care insurance premiums also depend on the following benefits you choose:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (optional)
Long Term Care Insurance Companies in Montana
Montana 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. This is a list of the best long term care insurance companies in Montana:
Compare Montana Long Term Care Insurance Options
Our 30 years of LTC planning experience will save you time and money!
One Stop Shopping
Compare Montana’s 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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We impartially shop the market of top-rated insurance companies to help you find the best rate and the best 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 02/22/2022
2. Cost of Care Survey 2021 (Genworth.com), site accessed 02/22/2022
3. Family Caregiver Alliance (www.caregiver.org), site accessed 02/22/2022