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Last Updated November 5, 2019

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Illinois Long Term Care, Insurance, State Partnership, Premium Costs & Custom Quotes 

Planning ahead for long term care is a critical part of your retirement strategy. Many Americans have witnessed their loved ones run out of money and options at one of the most vulnerable and frail stages of their life. This not only wrecks havoc to family finances, but also puts family members through a lot of emotional stress. The primary goal of a long term care plan should be to protect your assets and family members from the often devastating cost of long term care. And given that 70% of Americans over the age of 65 will need this kind of care – planning ahead is the first step towards protecting your assets, family, and (more so) peace of mind.

Illinois’s population is close to 13,000,000 people, the fifth most populous state in the country. As such, it has one of the largest demand for Long Term Care services, which includes care in Nursing Homes, Assisted Living Facilities and Home Health Care.  Data from the US Census shows that there are over 1.6 million residents in Illinois who are 65 years or older. That’s over 1.6 million residents and counting in the Prairie State who will increasingly need and use Long Term Care. If not prepared with Long Term Care Insurance, this rapidly rising number of seniors will put increasing economic stress on families and the state. 

 

How to pay for long term care in Illinois

There are various ways in which you can choose to pay for long term care in Illinois:

Long Term Care Insurance 

Insurance is an important component when it comes to securing your financial future. Illinois residents have the choice of 18 great Long Term Care Insurance companies that can help protect their savings in the event they need Long Term Care services.

Long Term Care insurance covers the cost of care if and when seniors need help with the activities of daily living (e.g. eating, bathing, dressing). Because you know you’ll receive quality care at a facility of your choice should you need it – a good LTC policy secures your peace of mind. These policies come in a wide variety of options to suit your custom needs.

→ Traditional LTC insurance vs hybrid LTC policies

Illinois residents can choose between a conventional LTC policy and a hybrid plan. With a traditional plan, you pay annual premiums in exchange for long term care coverage at home, in a nursing home, adult care center, or assisted living facility. You’ll be able to choose how much coverage you need (daily benefit amount) and for how long. These plans can come in handy if you need long term care insurance. However, if you do not end up needing care, the entire premium value will be lost. Hybrid LTC are typically a combination of permanent life insurance or annuity with a long term care rider. If you need long term care, then the policy will pay out LTC benefits. But if you do not need care, a death benefit will be paid out to your beneficiaries. Thus, hybrid policies eliminate the use-it-or-lose-it shortcoming of traditional LTC insurance.

Private pay

If you’re wealthy enough, then you can choose to pay for long term care from personal finances or assets. Keep in mind that the average annual cost of a private nursing home room in Illinois was $81,030 (based on 2018 data). The average stay at a nursing home is 3 years in Illinois, so you’d need about $243,080 ($81,030 x 3). But a fact of the matter though is that most senior citizens in Illinois live on modest fixed income from social security and perhaps a pension. This would likely be inadequate to self-fund care at a nursing home, assisted living center, or even at home.

Illinois Medicare

Medicare is the federal program that provides medical and hospital coverage to individuals aged at least 65 years, as well as younger people with disabilities. This program can provide some limited benefit at skilled nursing facilities, but it does not work like a full-fledged LTC insurance and only provides coverage for a maximum of 100 days. Keep in mind that you’ll need to prove that you have nearly exhausted all your assets before this limited support can kick in.

 

Illinois Long Term Care Partnership

The population of Illinois, like many states, is growing older at a fast rate and Illinois put a program together to try and tackle the problem of lack of Long Term Care Insurance coverage for its residents.  

The Illinois Long Term Care Partnership program is a joint partnership between the state’s Medicaid program and insurance companies. The program was approved by the state legislature in 2005, and it was designed to help Illinoians protect their assets by providing an incentive to buy a Long Term Care Insurance policy. Purchasing a Long Term Care insurance policy through the Illinois Long Term Care Partnership program means you are not only protected by your policy, but also by Medicaid if you ever exceed the benefits of that policy.

Long Term Care Insurance covers the cost of services such as nursing homes, in-home care and assisted-living care when one is unable to care for themselves and is not covered by regular health insurance and only by Medicaid if one qualifies, which can be difficult without exhausting all of your assets. Awareness of the need for Long Term Care Insurance remains low in Illinois, as in the rest of the country. A study put on by Genworth Financial, found that 7 in 10 Americans have made no plans for long-term care and many were not even aware of this type of insurance and what it covers. And, given that the Department of Health and Human Services estimates that 2/3 of all Americans will need long-term care at some point after they pass age 65, this does, indeed, constitute a problem to be reckoned with.  Many Americans, regardless of the State in which they live, are now at risk of having to exhaust their nest egg or rely on their children or other relative to care for them in retirement should they become unable to care for themselves. Under the Illinois Long Term Care Partnership Program Act, the State aims to encourage residents of Illinois to prepare for their future long-term care needs. By providing incentives for individuals to insure against the cost of long term care, the state is able to delay or eliminate dependence on Medicaid.

Residents of Illinois are able to participate in the Illinois Long Term Care Insurance Partnership Program via a number of policy options that meet certain State-mandated criteria.The state aims to reward those who do their part in solving this problem of Long Term Care Insurance coverage by planning ahead and protecting themselves and their assets.  Basically, it works like this: purchasers of partnership policies provide a way for individuals to qualify for coverage of their long-term care needs under Medicaid without first being asked to substantially exhaust their resources.  This enables partnership policyholders to shield their assets should they need to apply for Medicaid as normally one is required to exhaust all assets before qualifying for Medicaid’s long-term care coverage.

Highlights and requirements of the Partnership Program include:

  •         Dollar-for-dollar Medicaid Asset Protection
  •         Counseling on long-term care planning
  •         Plans must meet stringent consumer protection standards
  •         meet the following inflation requirements:
  •         For ages 60 or younger – provides compound annual inflation protection
  •         For ages 61 through 75 – provides some level of inflation protection
  •         For ages 76 and older – no purchase of inflation protection is required

The inflation protection requirements are crucial here to determine eligibility.  Inflation protection ensures that your policy will pay out in tomorrow’s dollars and that your covered for the care you need.

 

Illinois Long Term Care Costs

Compared to other states, Illinois is one of the states with cheaper nursing home costs. The 2019 Nursing Home Costs study by SeniorLiving.org put Illinois at number 7 among the cheapest states. But this doesn’t make it affordable. You’ll need at least $81,030 to pay for a single year of stay at a private nursing home room based on 2018 estimates. Given that a long term care event can span anywhere from 1 year to 6 years, this would still turn out to be a devastatingly large amount. It’s important for State residents to be familiar with Illinois long term care costs.

Here’s a table of the cost of long term care in different Illinois region – based on the 2018 Cost of Care Survey by Genworth Financial

REGION PRIVATE NURSING HOME ROOM SEMI-PRIVATE NURSING HOME ROOM ADULT DAY HEALTH CARE ASSISTED LIVING FACILITY (PRIVATE ROOM) HOME HEALTH AIDE (AT 44 HOURS WEEKLY)
State Median $81,030 $70,993 $18,806 $48,360 $51,480B
Bloomington $93,075 $76,103 $16,900 $55,800 $53,196
Carbondale area $71,358 $60,225 $20,821 $41,700 $50,336
Champaign area $101,470 $78,840 $20,800 $42,936 $50,336
Chicago area $112,238 $87,965 $20,735 $57,531 $54,912
Danville $78,475 $69,350 $50,400 $51,480
Decatur $85,775 $73,730 $17,222 $48,456

 

$50,336

 

Kankakee $82,125 $73,000 $19,110 $47,832 $50,336
Peoria $81,578 $68,620 $14,235 $45,000 $50,336
Rockford $82,125 $70,993 $19,760 $57,240 $46,629
Springfield $81,395 $71,175 $52,920 $46,332
Rest Of State $65,700 $55,298 $18,762 $39,000 $50,336

 

 

Illinois Long Term Care Premium Costs by Age

Policies from different insurance companies are available at varying premium rates. Most Illinoians notice that premiums are cheaper when you are younger and healthy. Other factors that affect the cost of long term care insurance in the Prairie State include the daily maximum benefit, the benefit duration, inflation protection, and the elimination period that you select. 

Illinois Long Term Care Insurance Sample Premiums 

These sample policies have a 90-day elimination period, and provide a maximum daily benefit of $200 over a 3 year duration.

→ At Age 50

Based on 2018 data from leading long term care insurers in Illinois, here are samples of the annual premium:

  •         Single Male, Age 50, will pay $1,894
  •         Single Female, Age 50, will pay $2,277
  •         Couple, both age 50, will pay a combined $3,291

→ At Age 55

  •         Single Male, Age 50, will pay $1,967
  •         Single Female, Age 50, will pay $2,381
  •         Couple, both age 50, will pay a combined $3,308

→ At Age 60

  •     Single Male, Age 50, will pay $2,070
  •         Single Female, Age 50, will pay $2,963
  •         Couple, both age 50, will pay a combined $3,390

→ At Age 65

  •         Single Male, Age 50, will pay $2,627
  •         Single Female, Age 50, will pay $3,921
  •         Couple, both age 50, will pay a combined $4,453

Notice how – given the same elimination period, daily maximum benefit, and benefit duration – the rates go higher with age. Married couples can also save substantially on their annual LTC premiums in Illinois by buying the policy jointly.

You can start planning today for your future long-term care needs and securing all that you have worked so hard to achieve for your retirement by purchasing a Long Term Care Insurance policy.  LTC Tree can assist you in finding a plan through the Illinois Long Term Care Partnership Program that is right for you, no matter your age or financial status. If you would like to learn more about our affordable Long Term Care Insurance partnership policies in Illinois, simply fill out this form below.

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