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.
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
Like most advisors, we recommend buying long-term care insurance in your fifties or early sixties for the following reasons:
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 >
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.
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 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.
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:
California Long-Term Care Costs – 2022 (annual) | ||||
Region | Nursing 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 | $52,200 | n/a |
Los Angeles Area | $135,233 | $109,500 | $63,000 | $70,928 |
Madera | $92,528 | $90,703 | $45,930 | n/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 |
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:
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
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.
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.
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.
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.
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.