Long Term Care Insurance Utah Costs, Companies and Quotes
Utah Long Term Care Insurance Review
This Utah Long Term Care Insurance Review explains long term care planning in the state of Utah. Here are the key points covered in this article:
- The risk of needing long term care
- The cost of long term care in Utah
- Types of long term care insurance
- What’s the best age to buy long term care insurance
- Utah Partnership for Long Term Care
- How much does long term care insurance cost in Utah
- Long term care insurance companies in Utah
- Comparing Utah long term care insurance quotes
Click To Get Utah Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Utah.
Utah 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 Utah, the average cost for 3 years of long term care is $273,750 ($91,250 per year) at 2018 rates. That cost is projected to be $494,424 ($164,808 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 Pay For 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 Utah
There are two types of insurance in Utah 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.
Utah Long Term Care Costs
One of the most comprehensive studies on long term care (LTC) costs is from Genworth Financial, a leading Fortune 500 company. The Genworth 2018 Cost of Care Survey encompasses national long term care costs and surveyed over 15,000 long term care providers. Local long term care costs are important for Utah residents to consider. Because, the cost of long term care services is a key factor in choosing how much long term care protection to include in your financial plan.
Here is the current cost of long term care in Utah:
Utah Long Term Care Costs – 2018 (annual)
|Home Health Aide
|Salt Lake City||$102,200||$81,213||$43,200||$56,056|
|Rest of Utah||$73,000||$62,963||$37,470||$49,192|
Utah Long Term Care Insurance Partnership Program
The State of Utah does not have a Long Term Care Partnership program. For reference, Partnership long term care programs are a collaboration between a participating State and private long term care insurance companies. Partnership long term care policies can provide an extra level of protection, when compared to a non-Partnership long-term care insurance policy. In particular, a Partnership policy would permit someone to protect assets from spend-down requirements under their State’s Medicaid program, if help under Medicaid is ever needed.
Long Term Care Insurance Partnership programs commonly require that companies offer specific policy benefits. This can help simplify benefit selection, but it can also increase the cost of insurance. A good example is when a Partnership policy has mandatory age-related inflation protection. In this respect, non-Partnership policies offer more flexibility making it smart for consumers to compare the two types of policies.
University of Utah Long Term Care Insurance
The University of Utah previously offered Long-Term Care Insurance but that program is now closed. Employees who were enrolled in that long term care insurance program on January 31, 2016 can likely stay enrolled by continuing to pay their premiums.
How Much Does LTC Insurance Cost In Utah?
How much does long term care insurance cost in Utah? The answer: Utah long term care insurance rates will depend upon your age and health history at the time you buy insurance. In general, the younger and healthier you are the lower the premium for your long term care protection. Your LTC 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)
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 Utah
Utah 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 offering coverage in Utah:
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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