Long-Term Care Insurance New Jersey Costs & Options
Choose a plan that’s right for you with our highly rated insurance companies, multiple plan options, and expert long-term care advisors.
- Traditional Long-Term Care Insurance
- Hybrid Life Insurance with LTC
- Long-Term Care Annuities
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Long-term care insurance can play a significant role in your family’s future well-being. By planning ahead you can provide security and peace of mind for years to come by knowing you can:
✔ Secure quality, affordable care.
✔ Safeguard your assets for your spouse and other heirs.
✔ Relieve family members and friends from having to provide care.
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Did You Know?
Almost 70% of people turning age 65 today will need some type of long-term care in the future. The average length of time people need care is 3 years.1
One-third of people may never need long-term care, but 20% will need it for longer than 5 years. On average women need 3.7 years of care while men need 2.2 years.2
In 2024, the average cost for 3 years of long-term care in New Jersey is $487,221 ($162,407/year). That cost is projected to be $969,465 ($323,155/year) in 2044.3
Understand Long-Term Care Costs
New Jersey Long-Term Care Costs – 2024 (annual) | |||
| Region | Nursing Home (private room) | Assisted Living (private room) | Home Care (44 hours/week) |
| New Jersey Average | $162,407 | $92,300 | $67,242 |
| Atlantic City-Hammonton | $133,406 | $77,615 | $62,098 |
| Jersey City-Newark | $180,501 | $90,928 | $71,699 |
| Ocean City | $160,006 | $73,049 | $59,537 |
| Trenton | $151,540 | $114,217 | $63,481 |
| Vineland-Bridgeton | $162,407 | $117,081 | $60,116 |
Source: Nationwide Financial 2024 cost of care survey conducted by HVS, site accessed 5/03/2024
Does Medicare Cover Long-Term Care?
No. Medicare does not pay for long-term care (custodial care) in New Jersey. This type of care makes up more than 90% of all long-term care services. Examples of custodial care is when you need help with walking, bathing, eating, dressing or using the toilet. This 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.
Further, about 80% of care at home is provided by unpaid caregivers. With more than half of this care including intensive caregiving assistance with personal care such as bathing or feeding.4 And it’s not only seniors that need long-term care. Over 35 percent of people currently receiving care are between the ages of 18 and 64.5
When To Buy Long-Term Care Insurance
Like most advisors, we recommend buying your long-term care insurance policy in your fifties or early sixties for the following reasons:
- The younger you are when you buy a policy, the lower the annual insurance premiums.
- Even though you pay premiums a longer period of time, you’ll typically pay less overall than someone buying at an older age.
- 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.
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 cover those expenses out of pocket.
Find Out If You Health Qualify For Insurance >
How Much Does LTC Insurance Cost in New Jersey?
Long-term care insurance costs in New Jersey depend on your age, health history, plan design and type of LTC plan selected. The following plan design options let you choose how much protection is right for your situation:
- Benefit Period (years of care available)
- Daily Benefit (or monthly)
- Elimination Period (a deductible in days)
- Inflation Protection (if chosen)
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New Jersey Long-Term Care Insurance Options
These are the types of long-term care insurance plans available in New Jersey.
Traditional LTC Insurance—New Jersey Long-Term Care Partnership
- The most comprehensive long-term care plan for your dollar
- About half of all long-term care policies purchased
- The broadest set of options
- Recurring premiums
- Learn more about Traditional LTC >
Hybrid Life Insurance with Long-Term Care
- A permanent life insurance policy that can be used during your lifetime if you need long-term care
- If long-term care is not needed, your policy value passes to your estate as a tax-free death benefit
- This insurance policy may build cash value and have a return of premium option
- Premiums will NOT increase and 1035 exchanges possible
- Can be funded with qualified dollars (IRA, 401k, etc.)
- Learn more about Hybrid Life with LTC >
Hybrid Annuity with Long-Term Care
- A deferred annuity contract with a fixed interest rate and possible indexing for asset growth plus long-term care benefits
- If not exhausted paying for long-term care, the annuity value will transfer to your estate
- Long-term care benefits are typically double or triple the value of the annuity
- Insurance premiums will NOT increase and 1035 exchanges are possible
- Can be funded with qualified dollars (IRA, 401k, etc.)
- Learn more about Hybrid Annuities with LTC >
Short-Term Care Insurance
- Provides care for a year or less with the option of home health care only, nursing home only, or both combined
- Lower rates than long-term care insurance and some policies are available up to age 89
- Simplified underwriting can be a good fit if you’ve been declined for traditional LTC insurance
- No deductible (waiting period) option means benefits would be paid out as soon as you qualify
- Learn more about Short-Term Care Insurance >
Understand LTC Partnership Plans
New Jersey Long-Term Care Partnership
The New Jersey Long-Term Care Partnership Program combines private insurance with Medicaid asset protection. Only Partnership policies provide this type of asset protection when you need nursing facility, assisted living or home health care services.
These unique asset protection benefits of a New Jersey Long-Term Care Partnership policy apply when care needs last longer than the benefits of your Partnership insurance policy. For instance, for each dollar your Long-Term Care Partnership policy pays in benefits, a dollar of assets is protected from the long-term care Medicaid asset limit. The protected assets are also exempt from Estate Recovery – dollar for dollar to the benefits paid by your Partnership policy.
The cost of a New Jersey Long-Term Care Partnership policy are like regular policies. But it still makes sense to compare LTC Partnership to non-Partnership policies. Because, there may be plan options better suited to your situation. A good example is hybrid long-term care insurance plans that are not available under the New Jersey Long-Term Care Partnership Program.
LTC Partnership Reciprocity
Reciprocity works if you purchase a Long-Term Care Partnership policy in another State and then later move to New Jersey. With New Jersey’s reciprocity, you will not lose the special Medicaid asset protection benefits by moving to New Jersey. The State of New Jersey would also recognize any accumulated asset protection for Medicaid qualification, assuming you were receiving benefits from your Long-Term Care Partnership policy before moving to New Jersey.
Long-Term Care Insurance Companies in New Jersey
We use several criteria when comparing long-term care insurance companies in New Jersey. All are highly rated insurance companies, but the type of plan best suited to your situation and any health issues are important considerations. Next, we analyze the best carriers available to find you the right plan at the lowest cost. Here is a list of long-term care insurance companies in New Jersey:
- Bankers Life & Casualty
- Brighthouse Financial
- Global Atlantic
- LifeSecure
- Lincoln Financial (MoneyGuard)
- Mutual of Omaha
- National Guardian Life (NGL)
- Nationwide Life Insurance Company
- New York Life
- Northwestern Mutual
- OneAmerica
- Securian Financial
- Thrivent Financial
Compare Long-Term Care Insurance Options
Our New Jersey LTC specialists offer objective guidance on a wide range of long-term care insurance products and strategies. Expect personalized service on topics such as:
✔ Choosing from a variety of long-term care insurance products
✔ Suggestions for the company best suited to your situation and goals
✔ Assistance with health qualifying for coverage
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About the Author: Craig Matesky
Reviewed by: Mike Berger