Long Term Care Insurance Tennessee Partnership Companies and Rates
Tennessee Long Term Care Insurance Review
This Tennessee Long Term Care Insurance Review explains long term care planning in the state of Tennessee. Here are the key points covered in this article:
- The risk of needing long term care
- Long term care costs in Tennessee
- Types of long term care insurance in Tennessee
- The best age to buy long term care insurance
- Tennessee Long Term Care Partnership Program
- Long term care insurance rates in Tennessee
- Long term care insurance companies in Tennessee
- Comparing Tennessee long term care insurance quotes
Click To Get Tennessee Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Tennessee.
Tennessee 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 Tennessee, the average cost for 3 years of long term care is $262,800 ($87,600 per year) at 2019 rates. That cost is projected to be $474,645 ($158,215 per year) in 2039.2.
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 Pay for 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.
Types of Tennessee Long Term Care Insurance
There are two types of insurance in Tennessee 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 long term care 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.
Tennessee Long Term Care Costs
Tennesseans need to know long term care costs when planning for future long term care needs. A major study on Tennessee long term care costs is from Genworth Financial Long Term Care Insurance.
Their 2019 Cost of Care Survey included over 15,000 long term care providers in 441 regions. Requiring just a few years of long term care services could wipe out the life savings of many families. Here is the current cost of long term care in Tennessee:
Tennessee Long Term Care Costs – 2019 (annual) |
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| Region | Nursing Home (private room) | Nursing Home (semi-private room) | Assisted Living (private room) | Home Health Aide (44 hours/wk) |
| Tennessee State Median | $87,600 | $82,037 | $46,800 | $46,698 |
| Chattanooga | $97,294 | $83,950 | $38,700 | $46,996 |
| Clarksville | $89,425 | $81,578 | $39,870 | $46,332 |
| Cleveland | $87,556 | $81,169 | $53,040 | $43,769 |
| Jackson | $91,980 | $82,125 | $47,700 | $41,184 |
| Johnson City | $85,410 | $83,038 | $47,819 | $48,071 |
| Kingsport Area | $89,060 | $85,410 | $50,970 | $46,332 |
| Knoxville | $88,330 | $80,300 | $43,500 | $47,224 |
| Memphis | $91,250 | $82,125 | $49,350 | $45,211 |
| Morristown | $83,950 | $80,300 | $40,800 | $43,472 |
| Nashville Area | $91,250 | $82,227 | $49,803 | $50,336 |
Tennessee Long Term Care Partnership Program
The Tennessee Long Term Care Partnership Program is a special program. It is a partnership between Tennessee and private long term care insurance companies and encourages people to plan ahead for future long term care needs. Tennessee Partnership Policies must meet certain federal and state requirements, and be certified as a “long-term care partnership policy” by the Tennessee Department of Commerce & Insurance.
Partnership Policies provide an extra level of protection, when compared to a regular long-term care insurance policy. In particular, such policies permit individuals to protect assets from spend-down requirements under Tennessee’s Medicaid program (TennCare) if help under this program is ever needed. The Tennessee Long Term Care Insurance Partnership requires that insurance companies offer specific policy benefits. This rule can help you choose the level of benefits to include in your long term care insurance policy.
Although Tennessee Long Term Care Partnership Program policies cost about the same as traditional LTC insurance policies, there is mandatory inflation protection at some ages. This feature of Tennessee Long Term Care Insurance Partnership policies can limit your options when selecting policy benefits. So consumers should compare Tennessee LTC Partnership policies with non-Partnership policies. To best understand the differences, we recommend working with an agent specializing in long term care insurance.
Tennessee Long Term Care Partnership Reciprocity
Consider the situation where someone buys a Long Term Care Partnership policy in another State and then later moves to Tennessee. Reciprocity means they will not lose the special asset protection when they move to Tennessee. Tennessee 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.
Long Term Care Insurance Rates in Tennessee
How much does long term care insurance cost in Tennessee? Your Tennessee long term care insurance rates will depend on your age and health history at the time you buy the insurance. Generally speaking, the younger and healthier you are the lower the cost.
Tennessee long term care insurance rates also depend on the following benefits you select:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (if chosen)
Complete the form on this page to request long term care insurance costs and comparisons specific to your situation.
Long Term Care Insurance Companies in Tennessee
Tennessee 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’s a list of the best long term care insurance companies in Tennessee:
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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 2019 (Genworth.com), site accessed 12/17/2019
3. Family Caregiver Alliance (www.caregiver.org), site accessed 6/12/2019