Long Term Care Insurance Virginia Partnership Companies and Costs
Virginia Long Term Care Insurance Review
This Virginia Long Term Care Insurance Review explains long term care planning in Virginia. Here are highlights of the points covered in this article:
- The risk of needing long term care
- The cost of long term care in Virginia
- Types of long term care insurance protection
- The best age to buy long term care insurance
- Virginia’s Long Term Care Partnership Program
- How much does long term care insurance cost in Virginia
- Long term care insurance companies in Virginia
- Comparing Virginia long term care insurance quotes
Click To Get Virginia Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Virginia.
Virginia 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.
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.
Who Needs Long Term Care Services?
According to the U.S. Department of Health and Human Services, about 70 percent of people over age 65 will need long-term care services of some type during their lifetime. The need for long term care services is not limited to seniors, 40 percent of people currently receiving long term care services are between the ages of 18 and 64. Long term care insurance planning is important, because traditional health insurance and Medicare do not pay for most long term care services.
Types of Long Term Care Insurance in Virginia
There are two types of insurance in Virginia 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.
Virginia Long Term Care Costs
Virginian’s need to know the cost of long term care services when planning ahead for future long term care needs. Because, the current cost of care in Virginia, and future cost projections, will tell you how much long term care protection you need.
A comprehensive study on national long term care costs is conducted by LifePlans, Inc. for the John Hancock Life Insurance Company. Another major study on the cost of long term care services is conducted annually by the Fortune 500 company, Genworth Financial. The Genworth 2018 Cost of Care Survey analyzed national long term care costs by surveying more than 15,000 long term care providers in 440 regions.
Here is the current cost of long term care in Virginia:
Virginia Long Term Care Costs – 2018 (annual)
|Region||Nursing Home (private room)||Nursing Home (semi-private room)||Assisted Living (private room)||Home Health Aide (44 hours/wk)|
|Virginia Beach Area||$101,105||$93,258||$56,106||$43,472|
|Rest of Virginia||$90,947||$80,300||$38,850||$40,612|
Virginia Long Term Care Insurance Partnership Program
The Virginia Long Term Care Insurance Partnership program is an alliance combining private long term care insurance coverage with special access to Medicaid. The Virginia Long Term Care (LTC) Partnership program provides residents of Virginia the ability to shield a portion, or all of their assets, while still being able to qualify for Medicaid. This Medicaid qualification would be in case their long term care needs extended beyond the amount payable by their private long term care insurance policy.
The private long term care insurance companies offering LTC protection in Virginia are required by the Long Term Care Insurance Virginia Partnership to offer specific policy benefits. This mandatory level of benefits may help you choose the specific level of benefits included in your long term care insurance policy. Section 6021 of the 2005 Deficit Reduction Act allows for Qualified State Long Term Care Partnerships. The private long term care insurance companies providing insurance in Virginia, in conjunction with the Long Term Care Insurance Virginia Partnership program, provide the long term care insurance policies known as Partnership Policies.
Virginia Long Term Care Partnership Rates
A Long Term Care Insurance Virginia Partnership program insurance policy premiums will be similar to other LTC policies that have similar benefits. Consumers should be aware that the mandated inflation protection features of Long Term Care Insurance Virginia Partnership policies can limit the choices available when designing your insurance policy. For example, some individuals may not want to include inflation protection but a Partnership policy does not provide this flexibility. Therefore, we recommend comparing Virginia LTC Partnership policies to non-Partnership policies to clearly understand the differences. One of our licensed long term care insurance agent’s can provide these illustrations.
Virginia Long Term Care Partnership Reciprocity
For those purchasing a qualified Long Term Care Partnership policy in another State, under their Long Term Care Partnership program, reciprocity means they will not lose their asset protection if they move to Virginia. The State of Virginia 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 moving to Virginia.
How Much Does LTC Insurance Cost In Virginia?
How much does long term care insurance cost in Virginia? The answer: 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. The cost 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 Virginia
Virginia 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 Virginia:
Compare Long Term Care Insurance Costs and Options
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