Long Term Care Insurance Michigan Costs, Companies & Quotes
Michigan 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.
Click To Get Michigan Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Michigan.
How Many People Need Long Term Care?
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. Long term care insurance planning is critical to a financial plan. Critical because traditional health insurance and Medicare do not pay for most long term care services.
To buy long term care insurance, individuals must be enjoying good health. And this health qualification aspect makes it important to plan ahead. In general term, this means buying long term care insurance when you’re somewhere between age 50 and 70 and enjoying good health.
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 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
There are two types of protection for long term care needs:
- Traditional Long Term Care Insurance.
- Hybrid Long Term Care Insurance. This includes long term care annuities and long term care life insurance.
Each type has its specific advantages. Our comparisons explain the differences to help you decide which may be best for you.
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.
Michigan Long Term Care Costs
One of the most comprehensive studies on the cost of long term care is from Genworth Financial, a Fortune 500 company. The Genworth Financial 2018 Cost of Care Survey includes national long term care costs from over 15,000 long term care providers in 440 regions. Michigan long term care rates are important for Michigander’s to consider. Because the local cost of long term care is a key factor in identifying how much long term care coverage to include in your financial plan.
Here is the current cost of long term care in Michigan:
Michigan 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)|
|Michigan State Median||$109,500||$102,748||$46,200||$52,624|
|Grand Rapids Area||$123,735||$109,135||$50,400||$52,624|
|Rest of State||$105,850||$101,835||$37,200||$52,624|
Michigan Long Term Care Insurance Partnership
The Michigan Long-Term Care Insurance Partnership Program is a partnership between Michigan and private long term care insurance companies. Partnership long term care policies must also meet certain federal and state requirements. These 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 Michigan’s Medicaid program if help under this program is ever needed.
There are several long term care insurance companies offering LTC insurance in Michigan. The Michigan Long-Term Care Insurance Partnership requires these companies offer specific policy benefits. This rule can help you choose the level of benefits to included in your long term care insurance policy. Long term care insurance policies sold under the Michigan Long-Term Care Insurance Partnership Program are known as Partnership Policies.
Michigan LTC Partnership Rates
Michigan 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 Michigan Long Term Care Insurance Partnership policies can limit your options when selecting policy benefits. So consumers should compare Michigan LTC Partnership policies with non-Partnership policies. To best understand the differences, we recommend working with an agent specializing in Long Term Care Insurance. Our insurance agents specializing in Michigan LTC insurance can explain differences.
Michigan Long Term Care Partnership Reciprocity
Let’s look at the situation where someone buys a Long Term Care Partnership policy in another State and then later moves to Michigan. Reciprocity means they will not lose the special asset protection when they move to Michigan. Michigan 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.
How Much Does LTC Insurance Cost In Michigan?
How much does long term care insurance cost in Michigan? 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)
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Long Term Care Insurance Companies In Michigan
Michigan 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 Michigan:
Compare Long Term Care Insurance Costs and Options
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