California Long-Term Care Insurance Planning

Find a plan that’s right for you with our highly rated companies, multiple plan options, and expert long-term care advisors.
  • Traditional Long-Term Care Insurance
  • Hybrid Life Insurance with LTC
  • Long-Term Care Annuities
 

Highly Rated Companies

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Long-term care insurance can play a significant role in your family’s future well-being. By planning ahead you can provide security and peace of mind for years to come by knowing you can:

   Secure quality, affordable care.

   Safeguard your assets for your spouse and other heirs.

   Relieve family members and friends from having to provide care.

Ready to explore costs and options?

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Did You Know?

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Almost 70% of people turning age 65 today will need some type of long-term care in the future. The average length of time people need care is 3 years.1

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One-third of people may never need long-term care, but 20% will need it for longer than 5 years. On average women need 3.7 years of care while men need 2.2 years.2

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In 2022, the average cost for 3 years of long-term care in California was $438,000 ($146,000 per year). That cost is projected to be $791,076 ($263,692 per year) in 2042.3

Does Medicare Cover Long-Term Care?

No, Medicare does not cover long-term care (custodial care). This type of care makes up more than 90% of all long-term care services. Examples of custodial care is when you need help with walking, bathing, eating, dressing or using the toilet. This 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.

Further, about 80% of care at home is provided by unpaid caregivers. With more than half of this care including intensive caregiving assistance with personal care such as bathing or feeding.4 And it’s not only seniors that need long-term care. Over 35 percent of people currently receiving care are between the ages of 18 and 64.5

When To Buy Long-Term Care Insurance

Like most advisors, we recommend buying long-term care insurance in your fifties or early sixties for the following reasons:

  • The younger you are when you buy a policy, the lower the annual premiums.
  • Even though you pay premiums a longer period of time, you’ll typically pay less overall than someone buying at an older age.
  • 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.

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 is currently considering taxing those who do not own long-term care insurance. The state may allow a short amount of time for people to buy LTC insurance to avoid the tax, but this detail is currently unknown.

Find out if your current health conditions will make it hard to qualify >

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Types of Long-Term Care Insurance in California

Traditional LTC, Hybrid Life LTC, and Hybrid Annuity LTC are the three most commonly chosen long-term care insurance plans in California. Another option is Short-Term Care, which is most often chosen because of health or age limitations.

 

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Traditional Long-Term Care Insurance

  • The most comprehensive long-term care protection for your dollar
  • About half of all long-term care policies purchased, including California Long-Term Care Partnership policies
  • The broadest set of options
  • Recurring premiums
  • Learn more about Traditional LTC >
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Hybrid Life Insurance with Long-Term Care

  • A permanent life insurance policy that can be used during your lifetime if you need long-term care
  • If care is not needed, your asset passes to your estate as a tax-free death benefit
  • May build cash value and have a return of premium option
  • Premiums will not increase and 1035 exchanges possible
  • Learn more about Hybrid Life with LTC >
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Hybrid Annuity with Long-Term Care

  • A deferred annuity contract with a fixed interest rate and possible indexing for asset growth plus long-term care benefits
  • If not exhausted paying for long-term care, the annuity will transfer to your estate
  • Long-term care benefits are typically double or triple the value of the annuity
  • Premiums will not increase and 1035 exchanges possible
  • Learn more about Hybrid Annuities with LTC >

California Long-Term Care Partnership

California Partnership for Long-Term Care policies combine private long-term care insurance with Medicaid (Medi-Cal) asset protection. Only Partnership policies provide this type of asset protection when you need nursing home, assisted living or home care.

The unique asset protection benefits of a California Partnership for Long-Term Care policy apply if your long-term care needs last longer than the benefits of your Partnership policy. For example, for every dollar your California Partnership for LTC policy pays in benefits, a dollar of assets is protected from the long-term care Medicaid (Medi-Cal) asset limit. The protected assets are also exempt from Estate Recovery in the same amount as the benefits paid by your Partnership policy.

Even though California Partnership for Long-Term Care rates are like regular policies, we recommend comparing them with non-Partnership policies. Because, non-Partnership policies may have options better suited to your needs. This includes Hybrid Long-Term Care Insurance plans not available under the California Partnership for Long-Term Care.

NOTE: As of the date of this writing, no insurance companies are currently offering LTC Partnership qualified products in California. This means you cannot buy a California Partnership for Long-Term Care policy at this time. This does not affect current, active insureds who are Partnership qualified.

Traditional non-Partnership and Hybrid Long-Term Care Insurance plans are available.

California long term care insurance partnership.

Partnership Reciprocity

California does NOT participate in the national reciprocity agreement.

In states with Reciprocity, you can buy a qualifying Partnership for Long-Term Care policy in one state and maintain the special asset protection benefit when you move to another state with reciprocity. Your new state would recognize accumulated asset protection for Medicaid qualification if you’re already receiving benefits from your LTC Partnership policy before moving. The majority of states have Partnership Reciprocity and California is one of the exceptions.

How Much Does LTC Insurance Cost in California?

Your California long-term care insurance rates will depend on your age, health history, plan design and type of coverage selected. The following choices let you choose how much protection is right for your situation:

  • Benefit Period
  • Daily Benefit
  • Elimination Period (a deductible in days)
  • Inflation Protection (if chosen)

Ready to get pricing and suggestions?

Connect with an LTC Advisor >
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Understand Long-Term Care Costs

California Long-Term Care Costs – 2022 (annual)

RegionNursing Home (private room)Nursing Home (semi-private)Assisted Living
(private room)
Home Health Aide (44 Hrs/wk)
California
State Median
$146,000$117,530$63,000$73,216
Bakersfield$125,195$109,865$45,000$66,077
Chico$141,438$110,413$61,275$68,640
El Centro$106,215$106,215$73,800$41,184
Fresno$120,450$103,660$46,800$66,352
Hanford Area$122,275$114,975$52,200n/a
Los Angeles Area$135,233$109,500$63,000$70,928
Madera$92,528$90,703$45,930n/a
Merced$118,808$104,755$48,000$75,458
Modesto$138,700$125,560$48,000$69,212
Napa$167,900$127,750$75,600$77,220
Oxnard$145,270$135,050$69,000$72,644
Redding$166,685$129,210$53,400$80,080
Riverside Area$106,376$95,904$48,000$73,216
Sacramento Area$169,543$127,750$62,700$75,504
Salinas$146,000$116,800$72,000$80,080
San Diego Area$146,000$112,603$65,700$77,678
San Francisco Area$168,813$138,791$75,825$85,800
San Jose Area$187,063$142,350$72,000$85,228
San Luis Obispo Area$146,000$120,450$63,600$85,800
Santa Cruz Area$144,175$127,750$66,600$84,084
Santa Maria Area$187,975$128,845$63,600$80,080
Santa Rosa$149,650$135,598$84,570$82,940
Stockton Area$153,118$120,176$43,782$65,780
Vallejo Area$123,370$125,560$59,400$71,500
Visalia Area$107,675$102,200$41,400$64,064
Yuba City$182,500$127,750$55,890$70,745
Data from Genworth Cost of Care Survey

Long-Term Care Insurance Companies in California

California long-term care insurance is available from several highly rated insurance companies. We compare these carriers to find you the right plan at the lowest cost. Here is a list of long-term care insurance providers in California:

Compare Long-Term Care Insurance Options

Our specialists offer objective guidance on a wide range of long-term care insurance products and strategies. Expect personalized service on topics such as:

   Choosing from a variety of long-term care insurance products

   Suggestions for the carrier best suited to your situation and goals

   Assistance with health qualifying for coverage

Ready to start a conversation?

Start long-term care planning >
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Common Questions

What is long-term care?

Long-term care is the assistance needed when a person is unable to manage their own personal care needs or when they need help with daily activities (walking, bathing, continence, dressing, eating, toileting and transferring). This type of care is known as Custodial Care and is not covered by Medicare.

How much does long-term care insurance cost?

For most people, long-term care insurance is affordable. However, several factors impact the cost of a policy, including your age, health, and policy design. The typical annual premium is much less than paying for one month of long-term care services out of your pocket.

What disqualifies me from long-term care insurance?

Your health status and age determines your eligibility for long-term care insurance. But even people with significant health conditions may still qualify. Conditions like Alzheimer’s, Parkinson’s, or currently needing care could disqualify you. Short-term care insurance may be a good option for those at older ages or with certain health issues.

What is the best long-term care insurance?

There are many plan options and highly rated carriers available. The best plan is from a highly rated insurance company with the right set of benefits for your needs.

How to buy long-term care insurance?

Your best source is from a Long-Term Care Advisor with substantial experience in LTC insurance underwriting, policy design, and claims. A licensed professional who represents several companies can find you the best coverage at the best value.

Some people turn to their financial advisor for long-term health care planning, but this is not their core competency. Many only work with one or two companies and have limited experience with the features and benefits of these products. Also, most have never filed a long-term care claim and don’t understand the process. As a result, many financial advisors partner with us to ensure their clients get the best service.

What Our Customers Say

 


1. “How Much Care Will You Need?” LongTermCare.gov, U.S. Department of Health and Human Services, site accessed 6/26/2023
2. “How Much Care Will You Need?” LongTermCare.gov
3. Cost of Care Survey 2021 Genworth.com, site accessed 6/26/2023
4. “Who Will Provide Your Care?” LongTermCare.gov
5. Family Caregiver Alliance Caregiver.org, site accessed 6/26/2023
Please note: Coverages and other features vary between insurers, vary by state, and are not available in all states.