What does Long-Term Care Cost in Wisconsin?

When looking at the cost of long-term care insurance in Wisconsin, you should first have an idea of how much long-term care cost, so you know how much coverage to purchase. Most families are not familiar with either, so you’ve come to the right spot to learn more.

The best approach is to know the costs of long-term care in Wisconsin, and then have an honest family discussion about what each family member’s expectations are. For instance, if you have children, will they be able and willing to help with parental caregiving in one of your homes? Do you have debilitating illness or on the other hand, extended longevity in your family history? Both increase your likelihood of needing long-term care at some point in your life.

Next formulate a consensus on what percentage of these costs you agree should be covered by your policy. Here is a great fact to know during your family discussions, nationally, the duration of long-term care averages 2-1/2 years, so that is a good place to start. From there consider your family and individual history. Now we are ready to look at some long-term care costs in Wisconsin.

Median Monthly Costs of Long-Term Care in Wisconsin (2017)

  • $1,410 – Adult Day Care
  • $4,480 – Home Health Aide
  • $4,000 – Assisted Living Facility
  • $7,908 – Semi-Private Room, Nursing Home
  • $8,953 – Private Room, Nursing Home
  • Source: US Department of Health and Human Services, Administration on Aging

Surprised? Yes, most of us are, unless you have paid care bills for a loved one recently there is certainly some sticker shock. The good news is most of us also over-estimate the cost of long-term care insurance in Wisconsin. We tend to equate the cost of long-term care insurance with the cost of our health insurance. You can rest a little easier now, because health insurance is normally much more than long-term care insurance. The difference is the consistency of long-term care costs, versus the unpredictability of health care – lifelong injury or illness and expensive prescription drugs. The biggest two things to think about are that 1) 70% of those reaching age 65 will need long-term care, and 2) insurance companies will only write insurance policies for long-term care when you are relatively healthy. So, don’t wait until you are no longer insurable, or face higher rates because of some medical event.

What is the Cost of Long-Term Care Insurance in Wisconsin?

Of course, the cost of insurance varies, but first here are some things to consider about LTC insurance

  • Rates are based on age at issue – the younger you are, the less expensive the rates
  • Females pay a higher rate, because they live longer
  • Rates vary by the maximum benefit purchased, say $500,000 v. $800,000
  • Rates vary by a whole host of features and add-on riders
  • And of course, your medical history and personal habits affect the underwriting decision, much like health insurance

Something people miss however, is that while long-term care insurance benefits are guaranteed, most plans do not guarantee rates. Just ask federal workers that faced an 83% single-year rate increase from John Hancock. Ouch. Capital Retention partners with insurers that have been around for decades and feature stable premiums. If fact, you should know by now that we have a plan that does guarantee your premium rate. You can reposition lesser-performing assets you already own, pay a large single premium and be done. Or, pay 5, 7 or 10 annual payments and be done. Those payments will never go up, so you know exactly what your investment is going in, and your coverage options become a simple math problem.

Our other program has had low single digit or no increases per year since inception. Of course, we better say that low historical rate increases, do not guarantee similar future rate increases. The point is, you are not likely to see anywhere near 83% premium increase of some companies, because these plans are based on decades of experience in the industry and realistic capital returns. The cost among all plans, averaging between $200-$300 per month.

You have many choices in the marketplace, but do yourself a favor and look to A+ rated insurers that have the financial strength to be there when it comes time to draw on them, for your long-term care needs. Talk these things through with your family and then talk to Capital Retention, we look forward to showing you a balance between great coverage, benefits and premiums.

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