Long Term Care Insurance Missouri Partnership Cost, Companies, Quotes
Missouri Long Term Care Insurance Review
This Missouri Long Term Care Insurance Review explains long term care planning in the state of Missouri. Here are the key points covered in this article:
- The risk of needing long term care
- Long term care costs in Missouri
- The two different types of long term care insurance
- What’s the best age to buy long term care insurance
- The Missouri Partnership for Long Term Care
- The cost of long term care insurance in Missouri
- Long term care insurance companies in Missouri
- Missouri long term care insurance quotes and comparisons
Click To Get Missouri Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Missouri.
Missouri 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 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.
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 Missouri, the average cost for 3 years of long term care is $199,563 ($66,521 per year) at 2018 rates. That cost is projected to be $360,432 ($120,144 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.
Types of Long Term Care Insurance in Missouri
There are two types of insurance in Missouri 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.
Missouri Long Term Care Costs
Missourians need to know long term care costs when planning for future long term care needs. Missouri’s current cost of care and future cost projections, tell how much long term care protection you need.
The most current study on the cost of long term care services is by the Fortune 500 company, Genworth Financial. This Genworth Financial 2018 Cost of Care Survey includes long term care costs of more than 15,000 long term care providers across the country. Included is a Cost of Care Calculator which adjusts long term care costs for inflation. This allows you to better estimate future long term care costs in Missouri.
Here is the current cost of long term care in Missouri:
Missouri 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)|
|Missouri State Median||$66,521||$60,225||$34,128||$48,048|
|Rest of Missouri||$58,400||$54,750||$31,800||$45,760|
Missouri Long Term Care Partnership Program
The Missouri Partnership for Long Term Care Insurance is a collaboration between Missouri and private long term care insurance companies. Often termed Partnership Policies, these long term care insurance policies must meet certain federal and state requirements.
Compared to a regular long term care insurance policy, Missouri Partnership for Long Term Care insurance policies provide an extra level of protection. Specifically, Missouri LTC Partnership Policies allow individuals to protect assets from spend-down requirements under Missouri’s Medicaid program, if help under this program is ever needed.
Missouri Partnership for Long Term Care insurance policies cost about the same as other LTC insurance policies. But at some ages, there is mandatory inflation protection. And this requirement can increase the cost of insurance and limit your choices. So we recommend comparing Missouri 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.
Missouri Long Term Care Partnership Reciprocity
Consider the scenario where someone buys a Long Term Care Partnership policy in another State and then later moves to Missouri. Reciprocity means they will not lose the special asset protection when they move to Missouri. And The State of Missouri would also recognize accumulated asset protection for Medicaid qualification, if the person were already receiving long term care benefits from their LTC Partnership policy before relocating.
The Cost of Long Term Care Insurance In Missouri
What’s the cost of long term care insurance in Missouri? 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)
Complete the form on this page to request long term care insurance quotes and comparisons specific to your situation.
Long Term Care Insurance Companies In Missouri
Missouri 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’s a list of long term care insurance companies in Missouri:
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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