Long Term Care Insurance New Jersey Companies, Costs and Quotes
New Jersey Long Term Care Insurance Review
This New Jersey Long Term Care Insurance Review explains long term care planning in the State of New Jersey. Here are the key points covered in this article:
- The risk of needing long term care
- New Jersey long term care costs
- The two different types of long term care insurance
- What’s the best age to buy long term care insurance
- The New Jersey Long Term Care Partnership Program
- How much does long term care insurance cost in New Jersey
- Long term care insurance companies in New Jersey
- New Jersey long term care insurance quotes and comparisons
Click To Get New Jersey Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in New Jersey.
New Jersey 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 New Jersey, the average cost for 3 years of long term care is $427,050 ($142,350 per year) at 2018 rates. That cost is projected to be $771,300 ($257,100 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 New Jersey
There are two types of insurance in New Jersey 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.
New Jersey Long Term Care Costs
One of the most comprehensive studies on the cost of long term care is from Genworth Financial, a Fortune 500 company. The Genworth Financial 2018 Cost of Care Survey includes national long term care costs from over 15,000 long term care providers in 440 regions. New Jersey long term care rates are important for New Jerseyan’s to consider. Because the local cost of long term care is a key factor in identifying how much long term care coverage to include in your financial plan.
Here is the current cost of long term care in New Jersey:
New Jersey 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)|
|New Jersey Median||$142,350||$127,750||$72,780||$54,912|
|Atlantic City Area||$114,063||$104,938||$61,200||$53,768|
New Jersey Long Term Care Partnership Program
The goal of the New Jersey Long Term Care Partnership Program is to help New Jersey residents prepare for the possibility of needing nursing home care, assisted living care or home care. The Long Term Care Insurance NJ Partnership (Partnership Program) operates under the New Jersey Department of Human Services. The NJ Partnership Program combines private long term care insurance with special rules for Medicaid eligibility. These special rules generally allow the insured to protect assets equal to the insurance benefits received from a Partnership Policy, so that the assets are not taken into account in determining financial eligibility for Medicaid. This means the assets would not be subject to Medicaid liens and recoveries.
The State of New Jersey Long Term Care Insurance Partnership requires the insurance companies offering these policies to provide specific benefits. This rule applies primarily to inflation protection, is age related, and may help simplify choosing your long term care insurance coverage. Section 6021 of the 2005 Deficit Reduction Act allows for Qualified State Long Term Care Partnerships. These policies are often referred to as Partnership Policies.
New Jersey LTC Partnership Rates
A Long Term Care Insurance New Jersey Partnership policy will have premiums like Non-Partnership policies, when designed with similar benefits. But the required inflation protection of a New Jersey Long Term Care Partnership policy may limit flexibility in benefit design. So, considering Non-Partnership LTC insurance may provide a wider range of choices. This wider range of options may provide more affordable long term care insurance. A long term care insurance agent can illustrate these options for you.
New Jersey Long Term Care Partnership Reciprocity
Consider the scenario when someone buys a Long Term Care Insurance Partnership policy in another State and then later moves to New Jersey. Reciprocity means they will not lose the special asset protection when they move to New Jersey. The State of New Jersey would also recognize accumulated asset protection for Medicaid qualification, if the person were already receiving long term care benefits from their Long Term Care Partnership policy before relocating.
How Much Does LTC Insurance Cost In New Jersey?
How much does long term care insurance cost in New Jersey? 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)
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Long Term Care Insurance Companies In New Jersey
New Jersey 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 in New Jersey:
Compare Long Term Care Insurance Costs and Options
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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