Illinois Long-Term Care Insurance: Detailed Guide

You’re young and fit, so assisted living and other forms of long-term care are probably the furthest things from your mind. That's understandable, but the fact is it’s never too early to start saving for potential future healthcare expenses.

With more than 100,000 residents in about 1,200 assisted living facilities across the state of Illinois, affordable long-term care is an important issue that only continues to grow as the population ages.

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 Illinois.

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 on 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 Illinois’ 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, and in turn became 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 toward 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 type of long-term care, such as continuous treatment and doctor 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, 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 Illinois’ Long-Term Care Insurance Cover?

Pretty much all forms of long-term care that may be necessary in old age or following a particularly severe 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. Here's 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 doctor visits
Multiple surgeries
Testing and diagnostic 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 Illinois Long-Term Care Insurance?

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 number of reasons that might inspire you to look into long-term care insurance. Here's 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 treatment can be staggering.

Here are just a few examples of average expenses for Illinois 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 to invest in a long-term care insurance policy, as well as the high costs of other long-term medical treatment and services.

What Factors Influence the Cost of Illinois 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’re likely to 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.

Here are 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 Illinois?

Several factors influence the cost of long-term care insurance, including where you live. The cost of treatment and service rates in your area also influences insurance premiums.Here is a handful of average long-term care costs in Illinois.

Average costs of long-term care in Illinois:

Home health aide daily rates: $138
Nursing home care daily rates: $184 for a semi-private room, $205 for a private room
Assisted living facility monthly rates: $3,898 for a private room

Illinois 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)
Illinois Median Cost	$81,030	$70,993	$48,360	$51,480
Bloomington	$93,075	$76,103	$55,800	$53,196
Carbondale Area	$71,358	$60,225	$41,700	$50,336
Champaign Area	$101,470	$78,840	$42,936	$50,336
Chicago Area	$112,238	$87,965	$57,531	$54,912
Danville	$78,475	$69,350	$50,400	$51,480
Decatur	$85,775	$73,730	$48,546	$50,336
Kankakee	$82,125	$73,000	$47,832	$50,336
Peoria	$81,578	$68,620	$45,000	$50,336
Rockford	$82,125	$70.993	$57,240	$46,629
Springfield	$81,395	$71,175	$52,920	$46,332
Rest of State	$65,700	$55,298	$39,000	$50,336

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

As for the cost of long-term care insurance, that 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. Here are some average long-term insurance rates for Illinois’ capital, Springfield.

Average costs of long-term care insurance for Springfield, Illinois:

Springfield, Illinois
Single male, age 40:
$54/month for a benefit amount of $2,000	$81/month for a benefit amount of $3,000	$108/month for a benefit amount of $4,000
Single female, age 40:
$84/month for a benefit amount of $2,000	$126/month for a benefit amount of $3,000	$168/month for a benefit amount of $4,000
Single male, age 55:
$72/month for a benefit amount of $2,000	$108/month for a benefit amount of $3,000	$144/month for a benefit amount of $4,000
Single female, age 55:
$116/month for a benefit amount of $2,000	$175/month for a benefit amount of $3,000	$233/month for a benefit amount of $4,000
Single male, age 70:
$137/month for a benefit amount of $2,000	$205/month for a benefit amount of $3,000	$273/month for a benefit amount of $4,000
Single female, age 70:
$212/month for a benefit amount of $2,000	$318/month for a benefit amount of $3,500	$424/month for a benefit amount of $4,000

Clearly the cost of monthly premiums increases significantly with age, which is a big reason why 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 Illinois?

So now that you’ve learned all about what long-term care insurance is, who needs it, and what it costs, you might be wondering where to get it. Illinois began its own long-term care partnership, the Illinois Long-Term Care Partnership, in 2005.

The partnership program aids long-term care policyholders in the event their insurance benefits don’t fully cover their medical costs. Through this program, policyholders are able to protect their assets and still qualify for Medicaid.

As for the top companies to purchase your long-term care insurance from, fortunately for Illinoisians there are several to choose from in your state.

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

Bankers Life & Casualty
Genworth Financial
LifeSecure
MassMutual Financial Group
Mutual of Omaha
National Guardian Life
New York Life
Northwestern Mutual
State Farm
Thrivent Financial
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 Illinois Long-Term Care Partnership program.

Be prepared with a list of your questions and concerns about long-term care 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 Illinois

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 Illinois 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, expert independent insurance agents will help you determine which route makes the most sense for you.

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 you through the claims process and make sure you’re getting the benefits you’re entitled to. Now that’s thinking ahead.

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