LTC Insurance – Ohio Long Term Care

Tips for Ohio Residents on Long Term Care Insurance

When you begin researching Long Term Care Insurance (LTCI) in Ohio, you’ll want to review the various angels of the insurance with a professional. You’ll want to consider your future earning to make sure you will be able to continue to pay the premiums years down the road.

This type of insurance can help pay for long-term medical care received at home, assisted living facility, adult day care center, or of course a nursing home. LTCI can pay the expenses related to custodial care as well as skilled care that help treat chronic conditions such as Alzheimer’s, mobility issues, etc. This type of care received on a daily basis averages at $75,000 per year in Ohio.

Seven important things to consider when researching Long Term Care Insurance in Ohio.

Determine if you are healthy enough to be approved for an Ohio Long Term Care Insurance policy.
Think about your current health, your parents’ health history and then make the call if you think you have a realistic shot at needing long term care. If you don’t think you will need care then don’t buy it, if you think you have a good chance then do.
Figure out how you will be able to pay the premiums for years down the road. You don’t want to get into a situation where you pay the premiums for 20 years and then have to drop it because you can’t afford it anymore.
Develop a budget that you plan to spend on premiums and then stick to it! There are a lot of bells-and-whistles out there in riders that can increase the cost of LTC premium significantly, so buy just what you need.
Factor in any family care that might be used in the event you need care. Don’t count on it, but if your kids say they will help out on the weekends maybe you could get a slightly smaller policy.
Be realistic. Family will usually initially say, sure Mom or Dad, I’ll take care of you. That might be a noble statement, but it also might not be realistic for your kids to take care of you.
Medicare will NOT pay for your Long Term Care bills. It will pay 20 days and that’s it. You will be responsible for the rest of your care until you spend down your assets to nothing, then you can go into a Medicaid nursing home. Not a fun alternative.

We specialize in helping our Ohio clients navigate the LTC waters safely and without over-insuring ones-self. We are Ohio Long Term Care Insurance Partnership trained as well. Fill in the form below and we’ll mail you the Ohio Long Term Care Insurance.

Top 10 Long Term Care Insurance Companies in Ohio

Ohio’s Department of Insurance regulates Long Term Care Insurance policies sold, and has approved dozens of companies to sell various forms of Long Term Care Insurance.

While there are numerous options available to Ohio residents, we commonly are asked to provide the top companies, organized by size and financial rating, that provide LTC policies. When it comes to Tax-Qualified policies, there are options from several major insurers in Ohio:

State Farm
MassMutual
New York Life
Northwestern Mutual
John Hancock
Transamerica
Genworth Financial
Mutual of Omaha

In addition, there are Long Term Care-centered “hybrid” or “asset based” Universal Life insurance policies from numerous carriers, including:

Lincoln Financial
Pacific Life
State Life
Nationwide

If you’re shopping for Long Term Care coverage, it’s important to compare companies and shop options between the various companies. Ohio residents have access to specific policies approved for sale in the state that differ from policies sold in other states.

Ohio Long Term Care Insurance Partnership

The Ohio Long Term Care Insurance Partnership program was launched in the state in 2007 to encourage Ohioans to plan for their future long term care needs. The law allows the sale of Ohio Long Term Care Insurance partnership plans to be offered by companies who are part of the program. Long Term Care Partnership insurance offers consumers the ability to buy long-term care insurance, use the policy’s benefits and protect a dollar for dollar amount of assets if they use up their LTC policy and then need to apply for Medicaid.

For example, if a person needs care and use up their whole policy, say $500,000 worth in benefits, and still need care, they can spend down their assets to $500,000 and then qualify for Medicaid.

Like with any insurance policy, you want to find a policy that fits your needs and one that does not over-insure yourself. Their is a balance between too much insurance and too little. Our Ohio Licensed Insurance agents that are certified and trained in the Ohio Long Term Care Partnership plan can help you navigate the various plans and companies that are part of the program. Take a moment and request your partnership info by filling in the form below.

What You Need to Know About Long Term Care Insurance Rate Increases in Ohio

A recent article in the Columbus Dispatch touches on the issue of Long Term Care Insurance rate increases and how they are affecting residents of Ohio. If you are one of the policyholders receiving a rate increase or you are thinking about buying a policy but are worried about a potential rate increase, there is some vital information that you should know.

Premiums Going Up

It’s true that carriers have been raising premium rates, in the last several years especially, but it isn’t without good reason. Long Term Care Insurance became available for purchase in the 1970s and since its inception, the insurance climate has dramatically changed.

When insurance companies first made their assumptions, they were based on mortality, morbidity, and interest rates at the same. Because all of those influencing factors have changed so much, premium rates have changed, too. If you are one of the 260,000 individuals in Ohio who have a Long Term Care Insurance policy, it helps to know why rates are being raised.

Why the Increase?

Not only are people living longer, they are also using their policies at much higher rates than the insurance companies expected. On top of that, fewer people are letting their policies lapse, because they recognize just how valuable they are. Yet another issue is that the interest rate has been forced so low that insurance companies aren’t getting good returns on investments and therefore have to raise premium rates in order to make up for all of these incorrect assumptions.

“This is a marketwide problem,” said Carrie Haughawout, assistant director for policy and product coordination at the Ohio Department of Insurance.

Many of the smaller, lesser-known carriers have left the market because they were unable to remain financially solvent amongst all of the changes. In 2013, 45 companies were actively marketing Long Term Care Insurance policies, down one-third from 2003. While this may seem like a bad thing, that’s not necessarily the case.

The companies that are left in the market are the solid, reliable, larger companies who are able to continue selling policies by adjusting for their previous assumptions. Some of these companies are actually losing money on older policies because the claims rates are so high and care has become so expensive. That’s how much benefit these policies provide to claimants.

What to Do

If you have been hit with a Long Term Care Insurance rate increase, don’t lose your cool just yet. You have a number of different options.

First, you should call your agent and speak with them about the choices you have. If you can afford to take the rate increase, we suggest you do it. As mentioned, these policies hold a tremendous amount of value, which is the reason companies are raising rates in the first place. Seriously think about whether or not you can absorb the extra premium rates and if you can, take that route.

Nearly all of the time, when you are notified of a rate increase, you have the option to reduce your coverage in order to continue paying the same amount. If you are unable to afford the full increase, this is your best option. It doesn’t make sense to throw away a policy that you have paid for before you may ever need care and chances are, you will regret doing so later down the road.

Don’t Start from Scratch

The chances of needing long term care are an estimated 7 in 10 for all Americans over the age of 65. Granted, not all of those people will need care for an extended period of time, but they will need care. Cancelling your policy puts you right back at square one, where you are financially vulnerable to the high cost of care, and even worse, out thousands of dollars from paying premiums. So before you let your policy lapse, think hard about whether or not you can afford to self-insure for long term care.

If you are in the same boat as most Americans, chances are you can’t without putting your hard earned savings at risk. Although 45 companies are left in the Ohio market, there are really only about 10 that are worth looking at. We help our clients navigate the top 5 or 6 companies to give them a good idea of different carriers, policies, and benefits, all while being able to compare prices and financial ratings.

To find out more about policies and get a free comparison, request a quote today.