Long Term Care Insurance California Partnership Costs & Quotes
California Long Term Care Insurance
This California Long Term Care Insurance Review covers long term care planning in the State of California. Here are the key points in this article:
- Who needs long term care?
- Does Medicare cover long term care?
- When to buy long term care insurance.
- Long term care insurance options in California.
- Cost of long term care in California.
- California Partnership for Long Term Care.
- Cost of long term care insurance in California.
- Long term care insurance companies in California.
CLICK HERE For 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. These experiences underscore the reality of the financial and emotional stress when someone 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.
Who Needs 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 $411,720 ($137,240 per year) at 2020 rates. That cost is projected to be $743,613 ($247,871 per year) in 2040.2
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 Cover Long Term Care?
Medicare is the federal health insurance program for those over 65 and some younger people with disabilities. And 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.
When 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 Insurance Options
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
A hybrid long term care insurance policy combines 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.
Cost of Long Term Care in California
This California long term care cost data can help you decide how much insurance you need. And it compares nursing facility, assisted living and home care costs. Here is the 2020 cost of long term care in the State of California.2
California Long Term Care Costs – 2020 (annual)
|Region||Nursing Home (private room)||Nursing Home (semi-private)||Assisted Living
|Home Health Aide (44 Hrs/wk)|
|Los Angeles Area||$126,838||$96,725||$60,000||$66,352|
|San Diego Area||$173,193||$128,663||$54,300||$68,594|
|San Francisco Area||$182,500||$149,650||$73,200||$73,216|
|San Jose Area||$176,295||$150,563||$70,500||$75,504|
|San Luis Obispo Area||$146,000||$120,450||$69,600||$73,216|
|Santa Cruz Area||$150,563||$110,413||$81,600||$75,504|
|Santa Maria Area||$172,463||$119,538||$60,000||$73,216|
California Partnership for Long Term Care
The California Partnership for Long Term Care (CPLTC) is a special California program combining private long term care insurance with special access to Medi-Cal. The California Partnership for Long Term Care helps Californians prepare for the possibility of needing nursing home care, assisted living care or home care.
A California Partnership for Long Term Care (Partnership) policy allows you to keep all, or part of your assets under the Medi-Cal program, if your long term care needs last longer than the benefits of your Partnership policy. The California Partnership for Long Term Care is a California Department of Health program.
California Partnership for Long Term Care insurance rates are like other policies. But the mandatory age-related inflation protection can increase the cost of insurance. So we recommend you compare California Partnership for Long Term Care policies with regular LTC insurance. Because, you may find a wider range of choices better suited to your needs. Including hybrid long term care insurance options not available under the California Partnership for Long Term Care.
California Partnership for Long Term Care Reciprocity
The term reciprocity applies to those purchasing Partnership coverage in one state and later moving to another state with a Partnership program. California does not have reciprocity with other states LTC Partnership Policies.
With reciprocity, someone would not lose their Medicaid (Medi-Cal) asset protection if they move to a state with reciprocity. A State with reciprocity also recognizes accumulated asset protection for Medicaid qualification. This applies when someone is already receiving benefits from their 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? The cost of long term care insurance in California depends on your age and health history at the time you buy the insurance.
Generally, the younger and healthier you are the lower the cost. Your long term care insurance cost also depends on the following benefits you choose:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (if chosen)
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 in California:
CA Long Term Care Insurance Quotes & Comparisons
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1. 2020 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 09/21/2021
2. Cost of Care Survey 2020 (Genworth.com), site accessed 09/21/2021
3. Family Caregiver Alliance (www.caregiver.org), site accessed 09/21/2021