Getting old in New Jersey is becoming more expensive. Ten thousand Americans are turning 65 every day and data from the Administration for Community Living, a part of the Department of Health and Human Services, estimates about seven in 10 people turning 65 will need some type of long-term care services either at home, in their community or in a facility.
Residents in New Jersey face long-term care costs that are above the national average. Data from New York Life’s 2018 Cost of Care survey shows the current hourly rate of a home health aide in the New York-Northern New Jersey-Long Island area runs nearly $25.00 per hour and the cost of a private room in a skilled nursing facility is more than $155,000 annually.
To help New Jerseyans cope with the challenges of meeting long-term care costs, New York Life launched NYL My Care in May. NYL My Care is the company’s latest standalone long-term care insurance solution designed to help more people, especially those in the middle market, plan for long-term care.
According to Nick Iannitelli, managing partner of New York Life’s New Jersey General Office, NYL My Care offers valuable long-term care coverage with a simplified design and lower price point, with typical premiums running $100-$150 per person per month.
Iannitelli said that My Care is the newest addition to New York Life’s suite of Long-Term Care and Chronic Care solutions, which in New Jersey includes NYL Secure Care, another standalone LTCi solution; Asset Flex, a linked-benefit life and LTC solution;, and a Chronic Care Rider, an optional rider added to a life policy to help cover costs associated with a chronic illness.
He noted that the NYL My Care design includes concepts familiar to consumers through other forms of insurance – coinsurance and a deductible – which the company hopes will help more people understand access and afford long-term care protection. Including these two elements in the design, he said, helps make coverage more affordable by policyholders sharing the cost of a long-term care event with the insurance company.
NYL My Care covers a range of long-term care (including home care, community-based care and facility care. The product is offered in four pre-designed plan levels (bronze, silver, gold and platinum) with different benefit levels to simplify the purchase decision, and customized plans are also available. Monthly coinsurance design helps make long-term care coverage more affordable.
In addition Coverage increases are available up to age 70. And starting at the end of policy year three, NYL My Care policyholders are eligible to receive a dividend in the form of an out-of-pocket premium payment reduction.
A 25 percent discount is available for couples both being issued a policy, or if the other partner already has a New York Life LTCi policy. A 10 percent discount is provided for couples if one policy is issued. Both discounts are available in all policy years.
In the first policy year, a discount of 5 percent off of the first-year premium is available for existing New York Life clients (certain restrictions apply).
Helping New Jersey residents
According to a 2017 AARP Public Policy Institute fact sheet, 52 percent of Americans turning 65 today will develop a serious disability requiring long-term care services. With nearly 16 percent of New Jersey’s population over 65, according to 2018 Census Bureau data, there’s a good chance many of the state’s residents will experience a long-term care event at some point in their retirement years.
Long-term care can be expensive and it is an expense many people have not planned for, said Iannitelli. “These expenses are also generally not covered by health insurance and coverage provided by public programs is limited. An unexpected need for care can create a large financial burden for those who have not planned for it and can put other savings and assets at risk,” Iannitelli said.
Creating a plan for long-term care, Iannitelli said, can provide added protection for one’s entire retirement plan and help keep funds and assets in place for the uses for which they were intended. “NYL My Care offers valuable long-term care coverage in a simpler design at an affordable price backed by a Fortune 100 company,” Iannitelli said.
When it comes to long-term care coverage, Iannitelli said that a little could go a long way.
“People don’t need a huge policy to enjoy the benefit of having a long-term care plan in place. Even a small standalone long-term care policy can provide access to benefits to help manage a long-term care event and provide peace of mind,” Iannitelli said.
“Long-term care is a family issue that impacts everyone and that’s especially true in a multi-generational state like New Jersey. Having a plan in place can help loved ones who may need care stay at home longer and can help reduce the financial and emotional burden on family.”