New Jersey Long-Term Care Insurance

(Because nursing homes and assisted living may be even more expensive than you think)

Long term care insurance in my state

While you may not think of mid-adulthood as the time to prepare for potential long-term care needs in your golden years, it’s best to get a head start as soon as possible. 

Considering that New Jersey ranked among the top 10 most expensive states for nursing home care in 2018, having access to affordable long-term care is more important than ever. You may seriously thank yourself later for planning ahead now.

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 Jersey. 

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 Jersey’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.

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What Does New Jersey’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 Jersey 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 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 Jersey 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 Jersey 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.

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

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 Jersey ranks as the sixth-most expensive state concerning rates for a private room in a nursing home, as of 2018, and has higher assisted living facility costs than in most other areas of 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 Jersey:

  • Home health aide daily rates: $138
  • Nursing home care daily rates: $325 for a semi-private room, $367 for a private room
  • Assisted living facility monthly rates: $4,950 for a private room

New Jersey 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 Jersey
$142,350 $127,750 $72,780 $54,912
Atlantic City Area $114,063 $104,938 $61,200 $53,768
Ocean City $132,495 $122,275 $57,600 $48,620
Trenton $135,050 $124,100 $86,760 $54,912
Vineland Area $142,350 $127,750 $82,260 $52,052


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

U.S. States with highest annual cost for a private room in nursing homes

Selected US states with high annual costs of assisted living facilities as of 2018 (in US dollars)

Selected U.S. states with high annual costs of assisted living facilities

As far as 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. We’ll go ahead and check out some average long-term insurance rates for New Jersey’s capital, Trenton.

Average costs of long-term care insurance for Trenton, New Jersey:

Trenton, New Jersey

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 Jersey?

Now that you’ve learned all about what long-term care insurance is, you might be wondering where to get it. New Jersey began its own long-term care partnership, called the New Jersey Long-Term Care Insurance Partnership program, in 2008. 

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

Fortunately for New Jersey 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 Jersey:

  • Bankers Life & Casualty
  • Genworth Financial
  • LifeSecure
  • MassMutual Financial Group
  • Mutual of Omaha
  • New York Life
  • Northwestern Mutual
  • 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 New Jersey Long-Term Care Insurance Partnership 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 Jersey

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.

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Save on Long Term Care Insurance

Our independent agents shop around to find you the best coverage.

Compare New Jersey 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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