New York Long Term Care Insurance Partnership Companies & Quotes
Long Term Care Insurance in New York
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. These experiences underscore the reality of the financial and emotional stress when someone 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.
Probability of Needing 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
As of 2021, the average cost for 3 years of long term care in New York is $476,391 ($158,797 per year). That cost is projected to be $860,415 ($286,805 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. And 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 have to 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 York Long Term Care Insurance Options
There are two types of insurance in New York State 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 long term care insurance policies make up about half of all long term care policies sold. New York Long-Term Care Partnership policies are in this category.
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, a life insurance with a long term care rider policy works much like traditional life insurance. 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.
New York Long Term Care Costs
These 2021 New York long term care cost numbers can help you decide how much insurance you need. This list has the average Nursing Home, Assisted Living and Home Health Care costs for many cities in New York State.
New York 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)|
|New York State Median||$158,797||$153,300||$54,960||$66,352|
|New York City Area||$158,775||$149,650||$69,000||$68,640|
New York Long Term Care Partnership Program
The New York Long Term Care Partnership Program is a Department of Health initiative combining private long term care insurance with Medicaid Extended Coverage (MEC). The purpose of the New York LTC Partnership is to help New Yorkers prepare for the possibility of needing nursing home care, assisted living care or home care.
A major benefit of a New York Long Term Care Partnership Program policy is that you can keep all or part of your assets under the Medicaid program, if your long term care needs last longer than the benefits of your insurance policy. Plus the New York Long Term Care Partnership requires insurance companies to include specific meaningful benefits. This rule can help simplify choosing your long term care insurance coverage.
Know that a New York Long Term Care Partnership Program insurance policy has premiums like regular policies. But you should still compare Partnership to non-Partnership offerings to see the widest range of policies available. This includes Hybrid Long-Term Care Insurance options not available under the New York Long Term Care Partnership Program. One of our Long-Term Care Insurance professionals can provide you with a comparison.
New York LTC Partnership Reciprocity
New York does participate in the national reciprocity agreement. Reciprocity allows you to buy a qualifying Long Term Care Insurance Partnership policy in another state and maintain the special asset protection benefit if you move to New York. The State of New York will also recognize accumulated asset protection for Medicaid qualification if you’re already receiving benefits from your LTC Partnership policy before moving to New York. The majority of states have Reciprocity, but not all.
How Much Does LTC Insurance Cost In New York?
How much does long term care insurance cost in New York? 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. Your LTC insurance rate will also depend on the following benefits you select:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (optional)
Long Term Care Insurance Companies in New York State
New York State 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. These are the best long term care insurance companies in New York State:
Compare NY Long Term Care Insurance Costs and Options
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Compare New York State’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 give you 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 11/13/2022
2. Cost of Care Survey 2021 (Genworth.com), site accessed 11/13/2022
3. Family Caregiver Alliance (www.caregiver.org), site accessed 11/13/2022