Long Term Care Insurance Washington State Partnership Companies & Cost
Washington Long Term Care Planning
Planning ahead for future long term care needs is a critical 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.
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 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.
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 Washington State, the average cost for 3 years of long term care is $376,791 ($125,597 per year) at 2021 rates. That cost is projected to be $680,526 ($226,842 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 long term care. An example of custodial care is when someone needs help with walking, bathing, eating, dressing and 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.
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 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.
Long Term Care Insurance Washington State Options
There are two types of insurance in Washington 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 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.
Cost of Long Term Care in Washington State
One of the most comprehensive studies on the cost of long term care is from Genworth Financial, a Fortune 500 company. Their 2021 cost of care survey includes national long term care costs from over 15,000 long term care providers in 441 regions.
Washington State long term care costs are important to know. Because, regional long term care costs can help you decide how much long term care protection you need. Here is the current cost of long term care in Washington:
Washington State 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)|
|Washington State Median||$125,597||$113,150||$72,000||$78,936|
|Mount Vernon Area||$130,305||$133,955||$66,000||$86,944|
Washington Long Term Care Partnership Program
The Washington Long Term Care Partnership Program combines private long term care insurance with special access to Medicaid. The Washington Long Term Care Partnership Program helps residents prepare for the possibility of needing nursing home care, assisted living care or home care.
A Washington State 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.
Washington Long Term Care Partnership Program rates are like other policies. But the mandatory age-related inflation protection can increase the cost of insurance. So we recommend you compare Washington Long Term Care Partnership Program policies with regular LTC insurance. Because, you may find a wider range of choices better suited to your needs. This includes hybrid long term care insurance options not available under the Washington State Long Term Care Partnership Program.
Washington Long Term Care Partnership Program Reciprocity
Consider the person who buys a long term care Partnership policy in another State and then move to Washington State. Reciprocity means they will not lose their asset protection by moving to Washington State. And the State of Washington will also recognize accumulated asset protection for Medicaid qualification if they’re already receiving benefits from their Partnership long term care policy before moving.
Average Cost of LTC Insurance in Washington State
What’s the average cost of long term care insurance in Washington State? Your insurance premiums will depend on the following:
- Your age and health history at the time you buy the insurance. The younger and healthier you are, the lower the cost.
- You select the size of your policy by choosing from the following benefits:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (if chosen)
Long Term Care Insurance Companies in Washington State
Washington 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 Washington State:
Washington Long Term Care Insurance Quotes
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Compare Washington’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 offering.
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1. 2022 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 02/23/2022
2. Cost of Care Survey 2021 (Genworth.com), site accessed 02/23/2022
3. Family Caregiver Alliance (www.caregiver.org), site accessed 02/23/2022