Long Term Care Insurance California Costs, Companies & Quotes
California Long Term Care Insurance Review
This California Long Term Care Insurance Review explains long term care planning in the state of California. Here are the key points covered in this article:
- The risk of needing long term care
- California long term care costs
- The two different types of long term care insurance
- What’s the best age to buy long term care insurance
- California Partnership for Long Term Care
- How much does long term care insurance cost in California
- Long term care insurance companies in California
- California long term care insurance quotes and comparisons
Click To Get California Long Term Care Insurance Quotes. We’ll give you quotes and comparisons for the leading LTC insurance providers in California.
California Long Term Care Planning
Planning ahead for future long term care needs is a key part of retirement planning. Many people have had first-hand experience with a loved one who needed long term care services. These experiences underscore the reality of the financial and emotional stress when a loved one needs long term care.
Long term care insurance can protect your retirement assets. Plus it gives you the peace of mind, knowing you can cover the cost of long term care if you need it in the future. A long term care plan also protects your family from having to be caregivers. And it enables you to choose where you’ll receive any care needed in later years.
What is The Risk of Needing of Long Term Care?
Someone turning age 65 today has about a 70 percent chance of needing some type of long term care during their lifetime. While one-third may never need long term care, 20 percent will need it for longer than 5 years. The average length of time people need long term care services is 3 years.1.
In California, the average cost for 3 years of long term care is $353,400 ($117,804 per year) at 2018 rates. That cost is projected to be $638,300 ($212,767 per year) in 2038.2.
And it’s not only seniors that need long term care. Over 35 percent of people currently receiving long term care services are between 18 and 64.3.
Does Medicare Pay for Long Term Care?
Medicare is the federal health insurance program for those over 65 and some younger people with disabilities. Medicare does not pay for custodial care which makes up more than 90% of all long term care services.
An example of custodial care is when someone needs help with walking, bathing, eating, dressing or using the toilet. Custodial care is what people need most when they have a physical impairment from a stroke. Or, due to cognitive impairment from dementia or Alzheimer’s disease. Don’t make the mistake of thinking Medicare covers long term care costs. It doesn’t.
Types of Long Term Care Insurance in California
There are two types of insurance in California that pay for long term care costs. And each type of policy has its specific advantages. One of our licensed professionals can provide more details to help you decide which is best for you.
Traditional Long Term Care Insurance – You pay an annual premium, and if you need long term care due to a cognitive or physical impairment, the policy pays for your care. Traditional LTC insurance policies make up about half of all long term care policies sold.
Hybrid Long Term Care Insurance – Hybrid long term care policies combine the benefits of life insurance, or an annuity, with long term care benefits. You can buy a hybrid long term care insurance policy by paying a one-time lump sum premium, or over a set period of time.
If long term care is never needed, the policy works much like a traditional life insurance policy. It would then pay a death benefit to your beneficiary when you die. And the death benefit is often similar to the amount paid for the policy. But if you need long-term care, the amount of money available can exceed the death benefit or long term care annuity value, often several times over, offering tremendous leverage of premium dollars.
The Best Age to Buy Long Term Care Insurance
Like most advisers, we recommend buying long term care insurance in your fifties or early sixties. The primary reasons for this recommendation are:
- The younger you are when you buy a policy, the lower the annual premiums.
- By the time you reach your mid sixties, you’re more likely to have a medical condition that makes you ineligible for a preferred-health discount, or makes it tough to get coverage at all.
- Even though you’ll pay premiums a longer period of time, you’ll typically pay less overall than someone buying at an older age.
So it almost never pays to wait. And, while you’re waiting, you’re uninsured. If an accident or illness happens causing you to need long-term care, you’ll have to pay out of pocket.
California Long Term Care Costs
A major study on California long term care costs is from Genworth Financial Long Term Care Insurance. Their 2018 Cost of Care Survey included over 15,000 long term care providers in 440 regions.
Knowing the cost of long term care services helps you determine how much protection you need. And their cost of care tool allows you to estimate the future cost of long term care. Here is the current cost of long term care in California:
California Long Term Care Rates – 2018 (annual) |
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| Region | Nursing Home (private room) | Nursing Home (semi-private) | Assisted Living (private room) |
Home Health Aide (44 Hrs/wk) |
| California State Median |
$117,804 | $100,375 | $54,000 | $59,488 |
| Bakersfield | $110,460 | $90,155 | $37,800 | $52,624 |
| Chico | $111,143 | $101,470 | $48,000 | $53,196 |
| El Centro | n/a | n/a | $43,800 | $57,200 |
| Fresno | $116,800 | $103,660 | $42,000 | $55,209 |
| Hanford Area | $103,722 | $100,072 | $42,768 | $n/a |
| Los Angeles Area | $109,500 | $91,250 | $54,000 | $57,200 |
| Madera | $93,805 | $88,330 | $39,870 | $57,200 |
| Merced | $103,478 | $94,535 | $42,000 | $58,298 |
| Modesto | $105,485 | $106,580 | $38,400 | $54,912 |
| Napa | $146,548 | $119,538 | $65,100 | $60,632 |
| Oxnard | $116,435 | $98,550 | $54,900 | $61,433 |
| Redding | $131,400 | $104,938 | $46,800 | $58,344 |
| Riverside Area | $104,025 | $90,703 | $42,000 | $54,912 |
| Sacramento Area | $129,758 | $102,200 | $53,670 | $59,488 |
| Salinas | $144,175 | $109,500 | $66,000 | $64,064 |
| San Diego Area | $127,750 | $102,200 | $54,000 | $57,589 |
| San Francisco Area | $139,795 | $109,777 | $66,000 | $67,496 |
| San Jose Area | $141,803 | $109,500 | $66,000 | $72,072 |
| San Luis Obispo Area | $100,375 | $91,250 | $65,400 | $61,776 |
| Santa Cruz Area | $100,740 | $96,908 | $67,140 | $69,784 |
| Santa Maria Area | $160,783 | $127,750 | $57,900 | $65,208 |
| Santa Rosa | $130,185 | $111,095 | $66,000 | $69,784 |
| Stockton Area | $118,906 | $98,072 | $42,000 | $59,488 |
| Vallejo Area | $106,580 | $98,003 | $52,200 | $54,912 |
| Visalia Area | $91,250 | $78,475 | $44,100 | $53,768 |
| Yuba City | $149,650 | $89,425 | $44,148 | $61,776 |
| Rest of State | $119,720 | $97,820 | $49,650 | $59,488 |
California Partnership for Long Term Care
The California Partnership for Long-Term Care combines long term care insurance with special access to Medi-Cal. Referred to as Partnership Policies, this is a program of the California Department of Health Care Services.
California Partnership for Long Term Care insurance rates are like non-partnership policies. But some features of CA Partnership Policies can limit flexibility in benefit design. An example is mandatory age-related inflation protection which can increase insurance costs.
We do recommend comparing CA Partnership Policies to traditional LTC insurance. Because, more coverage choices are often available. And consumers often find the wider range of choices better suited to their needs.
California Partnership for Long Term Care Reciprocity
The State of California does not currently have reciprocity with other states LTC Partnership Policies. For those purchasing Partnership coverage in another State, reciprocity means they will not lose their asset protection if they move to a state with reciprocity.
With reciprocity, the state the person moves to would also recognize accumulated asset protection for Medicaid qualification if the person were already receiving long term care benefits from their Long Term Care Partnership policy before moving to the new state.
How Much Does LTC Insurance Cost in California?
How much does long term care insurance cost in California? Answer: California long term care insurance rates depend on your age and health history at the time you buy the insurance.
Practically speaking, the younger and healthier you are the lower the cost. Your long term care insurance premiums also depend on the following benefits you choose:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (if chosen)
Complete the form on this page to request long term care insurance costs and comparisons specific to your situation.
Long Term Care Insurance Companies in California
California long term care insurance is available from several well respected insurance companies. We compare these companies to find you the best protection at the lowest cost. Here is a list of the best long term care insurance companies offering coverage in California:
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1. 2019 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 06/12/2019
2. Cost of Care Survey 2018 (Genworth.com), site accessed 6/12/2019
3. Family Caregiver Alliance (www.caregiver.org), site accessed 6/12/2019