Long-Term Care Insurance in Colorado: What Families Need to Know
When you’re caring for an aging parent or thinking about your own future, one question always comes up:
How will we pay for long-term care?
Costs for assisted living, memory care, and home help can add up fast. And for many families, those expenses come when stress and emotions are already high.
Long-term care insurance is one way to plan ahead and protect your loved ones from overwhelming financial strain. But is it the right option for you?
This guide will walk you through what long-term care insurance is, what it covers, how much it costs, and who it’s best for. It’s designed to help Colorado families make a confident, informed choice.
What Is Long-Term Care Insurance?
Long-term care insurance helps pay for the cost of care when a person can no longer manage daily tasks on their own.
This includes:
- Assisted living communities
- Memory care or Alzheimer’s care
- Nursing homes
- In-home care
- Adult day care
- Respite and hospice care
Most policies kick in when someone needs help with two or more activities of daily living (ADLs) like bathing, dressing, or eating—or has a cognitive condition like dementia.
What Does It Cover?
Coverage varies by policy. Some cover only medical services, while others include nonmedical help like housekeeping or meal prep.
Here’s what many plans include:
- Extended nursing home stays
- Assisted living and memory care
- In-home nurse or caregiver help
- Adult day care
- Hospice or respite care
Some do not cover personal care homes or residential care homes. Always check with the provider before choosing care.
When Should You Buy It?
Most experts suggest purchasing in your mid-50s. That’s when premiums are lower, and you’re more likely to qualify based on your health.
Here’s why timing matters:
- Premiums go up with age.
- Pre-existing conditions can disqualify you.
- You usually need to wait 30–180 days before benefits start.
In short: Long-term care insurance is not a last-minute solution. It’s a plan you make years before you need it.
How Much Does It Cost?
Premiums vary based on age, gender, health, and plan details.
As of 2024, here are average monthly costs for a $165,000 policy for 55-year-olds:
- $79 for a single male
- $125 for a single female
- $173 for a married couple
Your costs depend on:
- Age and health
- Marital status
- Benefit amount and length
- Elimination period (how long before benefits begin)
- Optional inflation protection
Plans with inflation protection are more expensive but may be worth it since care costs rise each year.
What Types of Policies Are Available?
1. Traditional LTC Insurance
- Pay premiums for a benefit you may or may not use.
- May lose your investment if you cancel or never need care.
2. Hybrid Policies (Life Insurance + LTC)
- Combines life insurance with long-term care coverage.
- Offers a death benefit or partial refund if unused.
These are growing in popularity because they feel less like a gamble.
Is It Worth It?
It depends on two things:
1. Your risk of needing care
- 57% of Americans turning 65 today will need long-term care.
- Most people use services for an average of three years.
2. Your financial picture
- Assisted living: ~$5,000/month nationally
- Nursing home (semi-private): ~$9,200/month nationally
If you have enough savings to self-insure, you may not need LTC insurance. But if those costs would wipe out your retirement or burden your family, a policy can bring peace of mind.
What Are the Benefits?
- Freedom to choose your care setting (not limited to Medicaid options)
- Relief for family caregivers
- Helps preserve savings and assets
- Tax advantages (some premiums may be deductible)
Some policies even pay family members to provide care.
What Happens If You Cancel the Policy?
With traditional policies, you may forfeit your premiums if you cancel. Some offer a return of premium rider, which returns a portion of what you paid.
Hybrid policies often let you:
- Cancel after a certain time and get cash back
- Provide a death benefit to loved ones
How to Choose a Provider
When comparing companies, look at:
- Premium stability
- Elimination period
- Claim approval process
- Discounts for couples
Trusted Providers Include:
You can also ask if they participate in state partnership programs, which can help you qualify for Medicaid later while protecting your assets.
3-Step Plan to Move Forward
At Harmony Senior Referrals, we simplify the journey for Colorado families:
- Talk with a local senior care expert.
- Get guidance on care options and insurance planning.
- Tour communities with confidence.
Speak with a local expert today—you don’t have to figure this out alone.
FAQs
How much does assisted living cost in Colorado?
The average monthly cost is around $5,000, though it varies by city and level of care.
Does Medicare cover long-term care?
No, Medicare does not cover most long-term care services like assisted living or personal caregiving. It may cover short-term rehab.
Can I buy LTC insurance in my 60s?
Yes, but premiums are higher and approval is harder due to health concerns. Earlier is better.
Can I use life insurance for long-term care?
Yes. Some policies have long-term care riders, or you can use the cash value from permanent life insurance.
Are premiums tax-deductible?
In many cases, yes. Especially for those who itemize medical expenses. Check with a tax advisor or IRS Guidelines.
You’re Not Alone in This
Choosing long-term care insurance is a big decision. It’s not just about money—it’s about protecting your loved ones and preserving their quality of life.
At Harmony Senior Referrals, we’re here to help. We’ve guided hundreds of Colorado families through these tough conversations.