Long Term Care Insurance Oregon Partnership Cost and Companies
Oregon 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.
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 Oregon, the average cost for 3 years of long term care is $400,080 ($133,360 per year) at 2021 rates. That cost is projected to be $722,589 ($240,863 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 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.
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.
Long Term Care Insurance Options in Oregon
There are two types of insurance in Oregon 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 long term care insurance 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 long term care annuity value, often several times over, offering tremendous leverage of premium dollars.
Oregon 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 2021 Cost of Care Survey includes national long term care costs from over 15,000 long term care providers in 441 regions. Oregon long term care rates are important for Oregonians to consider. Because the local cost of long term care is a key factor in identifying how much long term care protection you need. Here is the average cost of long term care in Oregon:
Oregon Long Term Care Costs (annual) – 2021
|Home Health Aide (44 Hrs/wk)|
Oregon Long Term Care Partnership Program
The Oregon Long Term Care Partnership Program joins private long term care insurance with special access to Medicaid. The Oregon Long Term Care Partnership helps Oregonians prepare for the possibility of needing nursing home care, assisted living care or home care.
An Oregon 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 Oregon Long-Term Care Partnership Program. Your LTC Specialist will explain the differences to help you decide which is best for your situation.
Oregon Long Term Care Partnership Reciprocity
If you buy your Long Term Care Partnership policy in another State, you will not lose the special asset protection if you move to Oregon. Plus, Oregon will recognize accumulated asset protection if you’re already receiving benefits under your Partnership long term care policy before moving to Oregon. Some states do not participate in this reciprocity.
How Much Does LTC Insurance Cost In Oregon?
How much does long term care insurance cost in Oregon? The answer: It depends on your age and health history when you buy your LTC insurance. As mentioned above, the younger and healthier you are, the lower the cost. Your 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)
Long Term Care Insurance Companies In Oregon
Oregon 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 are the best long term care insurance companies in Oregon:
Compare Long Term Care Insurance Costs and Options
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Compare Oregon’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 offerings.
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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. 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