Long Term Care Insurance Maine Costs, Companies and Quotes
Maine Long Term Care Insurance Review
This Maine Long Term Care Insurance Review explains long term care planning in Maine. Here are highlights of the points covered in this article:
- The risk of needing long term care
- The cost of long term care in Maine
- Types of long term care insurance protection
- The best age to buy long term care insurance
- Maine’s Long Term Care Partnership Program
- How much does long term care insurance cost in Maine
- Long term care insurance companies in Maine
- Comparing Maine long term care insurance quotes
Click To Get Maine Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Maine.
Maine 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.
The Risk of Needing Long Term Care Services
The U.S. Department of Health and Human Services says about seventy percent of people over age 65 will need long term care during their lifetime. But the need for long term care services is not limited to seniors. There are now forty percent of people currently receiving long term care that are between the ages of 18 and 64.
Types of Long Term Care Insurance in Maine
There are two types of insurance in Maine 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.
Maine Long Term Care Costs
Mainers need to know long term care costs when planning for future long term care needs. Maine’s current cost of care and future cost projections, tell how much long term care protection to have in your retirement plan.
A comprehensive study on national long term care costs is from LifePlans, Inc. for John Hancock Life Insurance Company. Their latest Cost of Care Study surveyed over sixteen thousand long term care providers across the nation and has a Cost of Care Calculator. The calculator adjusts long term care costs for inflation. This allows you to better estimate future long term care costs in Maine. Another study on the cost of long term care services is by the Fortune 500 company, Genworth Financial. The Genworth 2018 Cost of Care Survey includes long term care costs of more than 15,000 long term care providers.
Here is the current cost of long term care in Maine:
Maine 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)|
|Maine State Median||$121,180||$113,150||$59,400||$59,488|
|Rest of Maine||$123,370||$105,850||$62,010||$57,200|
Maine Long Term Care Insurance Partnership Review
The Maine Long Term Care Insurance Partnership Program is a three way partnership. It joins the State of Maine, long term care insurance companies and Medicaid (MaineCare). Partnership long term care insurance policies must also meet certain federal and state requirements. Long term care insurance policies sold under the Maine Long-Term Care Insurance Partnership Program are known as Partnership Policies.
The purpose of the Maine Long-Term Care Insurance Partnership is to encourage people to plan ahead for how they will pay for future long term care needs. These Partnership LTCi 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 Maine’s Medicaid program (MaineCare) if help under this program is ever needed. The Maine Long-Term Care Insurance Partnership requires the insurance companies offer specific policy benefits. This rule can help you select the level of benefits to include in your long term care insurance policy.
Maine Long Term Care Insurance Partnership Rates
Maine Long Term Care Insurance Partnership policies cost about the same as other LTC insurance policies. But at some ages, there is mandatory inflation protection. This feature of Maine Long Term Care Insurance Partnership policies can limit your options when selecting policy benefits. So consumers should compare Maine LTC Partnership policies with non-Partnership policies. To best understand the differences, we recommend working with an agent who specializes in long term care insurance.
Maine 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 Maine. Reciprocity means they will not lose the special asset protection when they move to Maine. The State of Maine would also recognize accumulated asset protection for Medicaid (MaineCare) qualification, if the person were already receiving long term care benefits from their Long Term Care Partnership policy before relocating.
How Much Does LTC Insurance Cost in Maine?
How much does long term care insurance cost in Maine? The answer: It depends 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. 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 Maine
Maine 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 Maine:
Compare Long Term Care Insurance Costs and Options
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