Montana Long Term Care Insurance Cost, Companies, Quotes
Montana Long Term Care Insurance Review
This Montana Long Term Care Insurance Review explains long term care planning in the state of Montana. Here are the key points covered in this article:
- The risk of needing long term care
- Montana long term care costs
- The two different types of long term care insurance
- What’s the best age to buy long term care insurance
- The Montana Long Term Care Partnership Program
- How much does long term care insurance cost in Montana
- Long term care insurance companies in Montana
- Montana long term care insurance quotes and comparisons
Click To Get Montana Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in Montana.
Montana 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.
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 it 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.
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 Montana, the average cost for 3 years of long term care is $263,151 ($87,717 per year) at 2018 rates. That cost is projected to be $475,281 ($158,427 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.
Does Medicare Pay for Long Term Care?
Medicare is the federal health insurance program for those over 65 and some younger people with disabilities. 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 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 in Montana
There are two types of insurance in Montana 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 – These asset based 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 insurance 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.
Long Term Care Costs In Montana
One of the most comprehensive studies the costs of long term care is done annually by Genworth Financial, a Fortune 500 company. The Genworth Financial 2018 Cost of Care Survey encompasses long term care costs nationally and surveyed over 15,000 long term care providers in 440 regions.
Montana long term care costs are important for Montanans to consider, because the local cost of long term care is a key element in deciding how much long term care coverage to include in your retirement plan. It’s important to consider the effects of inflation and the John Hancock Cost of Care Calculator also surveyed Montana long term care costs and includes a future cost of care estimator.
Montana 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)|
|Montana Median Cost||$87,717||$84,067||$47,028||$54,912|
|Rest of Montana||$84,680||$81,030||$45,833||$54,912|
Montana Long Term Care Insurance Partnership
The Montana Long Term Care Insurance Partnership plan is a program which combines private long term care insurance coverage with special access to Medicaid. The Montana Long Term Care Insurance Partnership allows Montana residents to shield a portion or all of their wealth (assets) and still be able to qualify for Medicaid, should their long term care needs extend beyond what is payable by their private long term care insurance policy.
The long term care insurance companies in Montana are mandated by the Montana Long Term Care Insurance Partnership program to provide a specific level of benefits. These requirements can help take the guesswork out of selecting your long term care insurance coverage. Section 6021 of the 2005 Deficit Reduction Act allows for Qualified State Long Term Care Partnerships. The private long term care insurance providers in Montana, working with the Montana Long Term Care Partnership program provide long term care policies that are commonly referred to as Partnership Policies.
Montana Long Term Care Partnership Rates
A Long Term Care Partnership Plan in Montana costs about the same as other policies when designed with similar benefits. It’s worth noting that the required features of a Montana Long Term Care Partnership policy may limit flexibility in benefit design. Thus, it may be beneficial to consider non-Partnership long term care insurance policies since a broader range of choices might be available and better suited to your personal situation. An agent specializing in long term care insurance can explain all of your choices to you.
Montana Long Term Care Partnership Reciprocity
If you purchase a qualifying partnership long term care policy in another State under their Long Term Care Partnership program, you will not lose your asset protection if you move to Montana. The State of Montana will also recognize accumulated asset protection for Medicaid qualification should you already be receiving long term care benefits from your Long Term Care Partnership policy before moving to Montana. The following link provides an excellent resource on Partnership Long Term care programs in Montana and other states.
How Much Does LTC Insurance Cost in Montana?
How much does long term care insurance cost in Montana? Answer: Montana long term care insurance rates depend on your age and health history at the time you buy the insurance.
Practically speaking, the younger and healthier you are the lower the cost. Your long term care insurance premiums also depend on the following benefits you choose:
- 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 costs and comparisons specific to your situation.
Long Term Care Insurance Companies in Montana
Montana 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 the best long term care insurance companies in Montana:
Request Montana Long Term Care Insurance Quotes!
Long Term Care planning has been our specialty since 1990. We’ll give you professional, unbiased information so you can decide if Long Term Care Insurance is right for you. We shop all the major long term care insurance companies in Montana and give you:
- Price comparisons customized for your specific needs from respected companies like Genworth Financial, John Hancock, Transamerica, Mutual of Omaha and others. We also provide detailed comparisons to the AARP LTC insurance offering.
- Benefit comparisons of each insurance company’s policy. This side-by-side comparison will cover both the similarities and differences of each plan.
- Financial stability reviews of each long term care insurance company’s financial strength rating, size and claims paying experience.
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