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

That’s a common question, but you might want to first ask, how much does long-term care cost in New Jersey? Would you be surprised to learn that a memory care unit is now over $100,000? A private room in a nursing home can be close to that. Then there is the option of assisted living, or even receiving your long-term care at home with professionals, or even a family caregiver. Obviously, the cost of care options is wide-ranging, just as is the case for long-term care insurance costs in New Jersey.

How Much Long-Term Care Insurance Do I Need?

Now we are on the right track. Every family has different needs, whether you are a wealthy family with significant assets to protect, or are just trying to figure out how to stay ahead of the bills. Today’s long-term care options have something for everyone. However, there is one thing no family should do – fail to plan for a long-term care event that will happen to 70% of us. You simply cannot buy long-term care insurance in New Jersey, unless you are relatively healthy. By contacting Capital Retention, you will first see if you qualify, and second, learn how to plan for the right mix of care and premium.

Examples of Long-Term Care Insurance Costs

Let’s look at a hypothetical $500,000 plan for middle income families, first. The example below is for informational purposes only, your insurance contract will be unique to your situation and is subject to underwriting adjustments. For this example, we will assume the insured is a 59-year-old male, with a couple’s discount and preferred rate eligibility in 2017.

Premium with Discounts

  • $259/month

Benefit Amount and Type

  • Up to $5700/month reimbursement in Nursing Home
  • Up to $5700/month reimbursement in Assisted Living
  • Up to $2,850/month reimbursement in Home Health Care
  • Up to $1,140/month cash benefit for Stay at Home

90-day elimination period for reimbursement options, waived for the Stay at Home Cash Benefit. Should you change from the Cash Benefit to the Reimbursement Benefit after 90 days, that 90-day elimination would also be waived. The total benefit duration of the Reimbursement Benefit would be 7.3 years. The total benefit duration of the Cash Option would be 36.5 years; neither to exceed the maximum benefit amount of $500,000. You can use the Cash Benefit to pay for your family caregiver assistance.

Now let’s look at a hypothetical family estate plan, considering a 60-year-old male with a couple’s discount and preferred rates and a 5% simple interest inflation benefit option, in 2017. Again, this is not an actual policy and is for informational and comparison purposes only.

Premium with Discounts

  • $100,000 one-time premium

Benefit Amount and Type

  • $4,825/month Day 1; total benefit amount $466,131
  • $9,650/month Age 80; total benefit amount $871,462
  • $115,809 Day 1 Death Benefit

There is a 90-day elimination period for reimbursed care at a nursing, assisted living, facility hospice or international care benefit. A 0-day elimination period for home health care, care coordination, caregiver training, home modification, durable medical equipment, or adult day care center benefits.

The obvious difference between these two plans is the single-premium via asset transfer, versus the lower monthly premium plan. On the benefits side, the single premium plan approximately doubles the maximum payouts at age 80. Both policies have a Cash Benefit for family caregivers and both have some level of inflation protection buy-up options.

Long-term care costs in New Jersey, are only going to increase over time. So, whichever example you would like to explore further provides protections for your family situation. No one plan is right for every family, so start the conversation at home and call Capital Retention for caring professionals, that can provide you a balance of care, with a premium that makes sense for your financial situation.

Meet Our Representative at Your Doorstep