New York Long-Term Care Insurance: Detailed Guide

As of 2019, nearly one in six New Yorkers are age 65 or older. In fact, the state’s population of senior citizens has grown 26% over the past decade. As New York’s population continues to gray, concerns over affordable long-term care only increase.

Though nursing homes and assisted living facilities may seem to be far off in the distant future, it’s never too early to start planning for potential long-term care costs later in life.

Long-term care is expensive, so many folks plan for it far in advance. For those wishing to take charge of the financial aspect of their future, fortunately there are plenty of long-term care insurance options in New York.

Our independent insurance agents are standing by to help you get set up with the best long-term care insurance for you at the best price. But let’s start from the beginning with a briefing on long-term care insurance.

What Is Long-Term Care Insurance?

Basically a different angle of life insurance, long-term care insurance is a type of policy designed to help you prepare for the financial side of assisted living services and other medical fees when you get older.

Of course, you might not end up needing this coverage if you remain in good health as you age, so unless you’re already in poor health, it’s more of a “just in case” method of preparation. Setting money aside while you’re young and healthy can make a huge difference.

No one wants to think about the possibility of their health declining in the future or one day needing extra medical care, but if it does happen, having a financial cushion in place can at least help to soften the blow.

Having to pay out of pocket for increased medical costs after retirement can be extremely stressful, especially if you haven’t planned for it in advance. Long-term care insurance aims to help make this phase of life easier for the elderly.

How Does New York’s Long-Term Care Insurance Work?

It all starts with paying a regular premium. Long-term care insurance is often purchased by adults in their 40s who have watched their parents go through assisted living or paying other excessive medical fees.

They, in turn, become inspired to start setting money aside for themselves to use later in life. Once you purchase a policy, you’ll pay a monthly premium for a long period of time towards an eventual benefit payout if and when you need it.

Benefits kick in once you’re in need of long-term care. In other words, you’ll get your policy’s payout when you actually go into a nursing home or assisted living facility, or are diagnosed with an ailment that requires another form of long-term care such as continuous treatments and doctors’ visits.

Depending on your specific policy, you may receive a certain amount of your benefits daily, weekly, or monthly.

Long-term care insurance is very similar to a life insurance policy, with the difference being that you’re the one who gets the benefit payout — to use while you’re still alive. Working with an experienced independent insurance agent is the best way to find a policy that’s set up in a way that benefits you as much as possible.

What Does New York’s Long-Term Care Insurance Cover?

It covers pretty much all forms of long-term care that may be necessary in old age or following a particularly harsh health diagnosis. Long-term care insurance is set up to help in the event that you outlive the money you’ve saved up, or find that maintaining your self-care becomes more expensive in your advanced years.

You can use your benefit payout to help with all kinds of medical costs, so we’ll check out a handful of the most common services and fees to apply coverage to.

Long-term care insurance benefits can help provide coverage for costs associated with the following:

Nursing homes
Assisted living facilities
Extended hospital stays
Recurring doctors’ visits
Multiple surgeries
Testing and diagnosis processes
Prescription medications
Physical therapy or other rehabilitation following surgery
Chemotherapy and radiation treatments
Fees associated with treating and recovering from long-term illnesses like stroke, dementia, or Alzheimer’s disease

It’s often said that life gets more expensive as you age. Unfortunately this is often the case, especially if increased medical care is required. Luckily those who plan ahead by purchasing a long-term care insurance policy can seriously help themselves with potential extra costs in their golden years.

Why Would I Need New York Long-Term Care Insurance?

You would need it mainly to help pay for long-term medical costs once you’ve retired, because Medicare won’t pay for everything. But really there are a handful of reasons that might inspire you to look into long-term care insurance. We’ll go over just a handful.

You might want to get a long-term care policy for one or more of the following reasons:

You don’t want to put a financial burden on your kids when you’re older by asking for their help with your medical payments.
You won’t have enough money set aside in savings after retirement to cover your living expenses and increased medical costs.
You’ll be financially strained post-retirement, but not so much so that you’ll qualify for Medicaid.

In addition, the costs of nursing homes, assisted living facilities, and other long-term treatments can be staggering.

Here are just a few examples of average expenses for New York seniors requiring long-term care:

The national median cost of assisted living is $4,000/month, or $48,000/year.
On average, a private room in a nursing home costs about $8,365/month, or $100,380/year.
Home health aides typically charge $20.50/hour for their services. Seniors often spend $50,668/year on home health aides.
The average daily cost of adult day health care centers is $68.
The average cost of cancer treatment is around $150,000 in total.
Additional treatment for Alzheimer’s disease can increase assisted living center costs by as much as $1,000/month.

Though more than half of surveyed American adults plan to rely on Medicare for their medical costs if necessary, sadly Medicare typically doesn’t cover assisted living expenses.

It’s important to keep this in mind when deciding whether or not to invest in a long-term care insurance policy, as well as the high costs of other long-term medical treatments and services.

What Factors Influence the Cost of New York Long-Term Care Insurance?

Well, there are a lot of them, and they’ll depend on your specific health insurance company. But in general, you’ll likely be asked several lifestyle questions, personal profile questions, and whatever other information your insurance company feels is important for calculating your insurance benefits and premium. We’ll check out a few of the most common.

Your insurance company may base your premium rates on the following factors:

Age
Race
Gender
Weight
Lifestyle habits (smoker vs. non-smoker, etc.)
Health history
Location of residence

As with other forms of life insurance and even health insurance, premiums tend to be on the pricier side for folks who are generally considered to be less healthy and lead riskier lifestyles. Although it depends on many things, in general, the younger and more fit and careful you are, the lower your premium is likely to be.

How Much Does Long-Term Care Insurance Cost in New York?

Several factors influence the cost of long-term health insurance including where you live. The cost of treatment and service rates in your area also influences insurance premiums.

Unfortunately, New York ranks as the fifth-most expensive state concerning rates for a private room in a nursing home, as of 2018, and has some of the highest long-term care costs in general for the country. We’ll look at a handful of average long-term care costs in the state.

Average costs of long-term care in New York:

Home health aide daily rates: $144
Nursing home care daily rates: $361 for a semi-private room, $373 for a private room
Assisted living facility monthly rates: $4,136 for a private room

New York 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)
New York State Median	$146,274	$141,073	$50,220	$57,200
Albany Area	$157,994	$150,205	$60,600	$58,344
Binghamton	$133,094	$130,192	$63,240	$55,484
Buffalo Area	$152,030	$135,415	$46,740	$56,285
Elmira	$144,934	$140,189	$68,514	$60,632
Glens Falls	$136,437	$132,539	$31,200	$54,912
Ithaca	$119,538	$114,975	$60,000	$59,488
Kingston	$154,369	$150,081	$49,200	$57,200
New York City Area	$155,125	$145,088	$70,989	$57,200
Rochester	$153,665	$146,000	$52,755	$57,200
Syracuse	$146,365	$141,620	$50,220	$59,488
Utica Area	$117,348	$114,986	$31,500	$57,200
Watertown Area	$140,525	$133,466	$66,105	$53,196
Rest of New York	$118,625	$114,610	$40,320	$58,344

Source: https://www.ltcinsuranceconsultants.com/long-term-care-insurance-new-york/

US States with highest annual cost for a private room in nursing homes as of 2018 (in US dollars)

The cost of long-term care insurance depends on several factors. The national average for singles aged 55 is $2,007/year, while married 55-year-olds pay an annual combined average of $2,466. We’ll go ahead and check out some average long-term insurance rates for New York’s capital, Albany.

Average costs of long-term care insurance for Albany, New York:

Albany, New York
Single male, age 45:
$73/month for a benefit amount of $2,500	$103/month for a benefit amount of $3,500	$132/month for a benefit amount of $4,500
Single female, age 45:
$116/month for a benefit amount of $2,500	$163/month for a benefit amount of $3,500	$209/month for a benefit amount of $4,500
Single male, age 60:
$104/month for a benefit amount of $2,500	$146/month for a benefit amount of $3,500	$187/month for a benefit amount of $4,500
Single female, age 60:
$170/month for a benefit amount of $2,500	$238/month for a benefit amount of $3,500	$306/month for a benefit amount of $4,500
Single male, age 75:
$223/month for a benefit amount of $2,500	$313/month for a benefit amount of $3,500	$402/month for a benefit amount of $4,500
Single female, age 75:
$387/month for a benefit amount of $2,500	$542/month for a benefit amount of $3,500	$697/month for a benefit amount of $4,500

Clearly the cost of monthly premiums increases significantly with age, which is a big reason many long-term care policyholders first purchase coverage in their 40s to lock themselves into a much lower premium.

Married individuals also get a price break of up to $100 on monthly premiums, and possibly even more than that if their partner is already a policyholder or looking into their own policy.

What Are the Best Long-Term Care Insurance Partnership Options and Insurance Companies in New York?

You’ve learned all about what long-term care insurance is and what it costs, so you might be wondering where to get it. New York was one of four original states to begin a long-term care partnership in 1992.

The New York State Partnership for Long-Term Care program aids long-term care policyholders if their insurance benefits don’t fully cover their medical costs. The program allows policyholders to protect their assets and still qualify for Medicaid.

Fortunately for New York residents, there are several top companies to choose from in your state when purchasing long-term insurance.

Here are several of the top long-term care insurance companies in New York:

Genworth Financial
MassMutual Financial Group
New York Life
Northwestern Mutual
Transamerica

An independent insurance agent can help you get set up with the best insurance company for your unique needs. An experienced agent can also help you determine if you might benefit from joining the New York State Partnership for Long-Term Care program.

Be prepared with a list of your questions and concerns about long-term insurance policies before you connect with an agent to help the process run as smoothly as possible.

How to Find the Best Long-Term Care Insurance in New York

In order to get the protection you need and deserve, you’ll want to work with a trusted expert. Independent insurance agents will not only know where to find the best coverage and price, but also help to make sense of the fine print.

Consider your unique needs, then connect with an agent to help you take it from there. Have a list of your specific concerns and desires handy before you reach out to help the process run even more smoothly.

Compare New York Long-Term Care Insurance Quotes with an Independent Insurance Agent

We all know how valuable your time is, so why spend it doing all the hard work yourself? From long-term care insurance to special add-on policies, our expert independent insurance agents will help you determine which route makes the most sense for you.

Our independent insurance agents stay on top of the insurance industry and all the latest discounts so you don’t have to. That means they’ll help find the right coverage at the right price for you.

They’re not just there at the beginning, either. If disaster strikes, your agent will be there to help walk your loved ones through the claims process and make sure they’re getting the benefits they’re entitled to. Now that’s thinking ahead.

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