Long-Term Care Insurance Emerges as Key to Quality Care in Indiana

Undeniably, the global population is aging, and the United States is no exception. Data from the U.S. Census Bureau reveals that as of 2020, there were about 122.6 million people aged 50 and over in the country. 

But aging encompasses more than just the onset of gray hair and retirement planning. It often introduces a range of health challenges, including chronic illnesses, mobility issues, dementia, and frailty, all of which can necessitate long-term care. With long-term care costs surging nationwide, the financial strain on families is set to increase significantly in the coming years.

Indiana is no exception, as the U.S. Census Bureau estimates that around 2.1 million people in Indiana are 50 or older. The cost of long-term care services is also rising in Indiana. The LTC News Cost of Care Calculator for Indiana shows the average cost of in-home (based on a 44-hour week) is $4,913 monthly. By 2044, that cost is expected to cost $8,371 a month.

However, metro areas will cost Hoosiers more. Compare in-home costs to the Indiana state average:

• Indiana average: $4913 per month
• Indianapolis: $5199 per month
• Fort Wayne: $5263 per month
• Michigan City: $5582 per month
• South Bend: $5827 per month

Assisted living, memory care, and nursing homes will all cost more.

Who Pays for Hoosier's Long-Term Care?

If you're like many Hoosier families who've had a loved one require long-term care, you're aware that traditional health insurance and Medicare don't cover the costs for most long-term care services. These insurance plans only cover short-term, skilled services, leaving you to shoulder the financial burden unless you have Long-Term Care Insurance or meet the eligibility criteria for Medicaid. It's important to note that Medicaid only provides coverage for long-term care if your income and assets fall below a certain threshold.

Long-term care encompasses a wide range of services and support mechanisms designed to meet the personal care needs of individuals who cannot perform everyday activities on their own due to chronic illnesses, disabilities, dementia, or the natural aging process. These services include in-home care provided by professional caregivers or family members, adult day care centers, assisted living facilities, and skilled nursing homes. 

Hoosiers may require long-term care for various reasons, such as recovering from a stroke, battling progressive conditions like Alzheimer's disease, or dealing with mobility challenges that prevent them from performing daily tasks. The goal of long-term care is to help individuals live as independently and safely as possible when they can no longer perform everyday activities without assistance.

Does Long-Term Care Insurance Work?

Many individuals underestimate their likelihood of requiring long-term care and are skeptical about the value of Long-Term Care Insurance, mistakenly believing that these policies rarely pay benefits. However, this perception is far from accurate. 

In fact, in 2023 alone, leading insurance companies disbursed more than $14.1 billion in Long-Term Care Insurance benefits across the United States. This significant figure highlights the tangible financial support LTC Insurance provides policyholders and underscores the growing demand for long-term care services. 

These benefits cover expenses for quality caregivers, whether at the care recipient's home or in a nice facility, enabling family members to maintain their roles and relationships without pausing their lives and careers to take on caregiving duties for which they are neither trained nor prepared.

LTC Insurance Pays Big in Indiana

The AHIP Long-Term Care Insurance Coverage report reveals that Long-Term Care Insurance is delivering significant benefits to Hoosier families, underscoring its value and impact.

The most recent data for 2021 shows that Long-Term Care Insurance policies disbursed $234,786,000 in benefits, totaling $2,749,727,000 in payouts since the inception of Long-Term Care Insurance in Indiana.

An LTC policy prevents Indiana families from depleting their income and assets to cover care services, averting financial strain and lifestyle changes for the care recipient and their spouse. Without such protection, the financial repercussions could negatively affect the inheritance intended for children and grandchildren.

Typically, without an LTC policy, daughters or daughters-in-law might find themselves compelled to provide care or dedicate significant time to managing professional services. An LTC policy enables family members to focus on their relationships rather than assuming the role of caregivers or coordinators of care.

Partnership LTC Insurance Offering Asset Protection

The Indiana Long-Term Care Insurance Partnership Program (ILTCIP) is a collaboration between the state of Indiana and private insurance companies. This program encourages individuals to purchase Long-Term Care Insurance, providing potential financial benefits while also easing the burden on Medicaid, the state's program for low-income individuals who need long-term care services.

Asset Protection

A key feature of the ILTCIP is asset protection. Partnership-qualified LTC insurance policies in Indiana offer two types of asset protection:

• Dollar-for-Dollar Protection: For every dollar your Partnership policy pays out in benefits, a corresponding dollar amount of your assets is protected if you ever need Medicaid assistance. So, if your LTC policy pays $200,000 in benefits, $200,000 of your assets will be exempted from Medicaid's asset limits.
• Estate Recovery Protection: Medicaid typically has the right to recover costs from an individual's estate after they pass away. With a Partnership policy, the amount of benefits paid out is protected from Estate Recovery, preserving those assets for your family or beneficiaries.
• Total Asset Protection: Total Asset Protection in the Indiana Partnership Program means that if you purchase a qualifying policy with sufficient coverage, your total assets would be protected instead of the typical "dollar-for-dollar."

When to Get LTC Insurance?

LTC Insurance has become increasingly pivotal in retirement planning strategies. Although the majority of individuals secure their coverage during their 40s or 50s, it's possible to acquire an LTC policy as early as age 21 and, depending on one's health status, even into the 80s.

It is your health that allows you to obtain an LTC policy. Every insurance company has its underwriting guidelines, and these rules differ between insurance companies. 

• What Is Underwriting In Long-Term Care Insurance?

Additionally, various policy types, such as hybrid policies that combine life insurance or annuities with a qualified rider for long-term care and short-term cash indemnity plans, come with different underwriting rules. 

It's crucial to consult with a qualified Long-Term Care Insurance specialist who represents all the top-rated insurance companies and can guide you through the diverse policy options available to determine the best fit for your needs.

Premiums are based, in part, by your age and health when you apply for coverage.

• Long-Term Care Insurance Cost: Factors, Considerations and Price Ranges

Additionally, there are various tax incentives and regulations at both the federal and state levels. A specialist will have the knowledge to explain how these incentives and regulations can benefit you as you evaluate your choices.

Finding Quality Care in Indiana

You and your loved ones deserve quality care when you need it. While Long-Term Care Insurance can provide access to quality care options, finding the right caregiver or facility, whether you have a policy or not, can make all the difference in maintaining a better quality of life for someone who requires long-term care.

The LTC NEWS Caregiver Directory will assist you in finding quality care in Indiana or anywhere in the United States. You can search by the type of care service and location. You can narrow down your options after reading a service description and reviewing ratings. Plus, the service is comprehensive and free to use - Long-Term Care Directory | Find Care Near You | LTC News.

Are You Prepared?

Aging is a reality for all Hoosier families, necessitating preparedness to safeguard income and assets and to reduce the burdens and stress placed on loved ones.

Delaying the conversation about long-term care and not exploring the many affordable LTC Insurance options can lead to higher costs and adverse impacts on your family.

LTC Insurance benefits Hoosier families and can provide you and your loved ones with peace of mind.