Long Term Care Insurance California Partnership Costs & Companies
California Long Term Care Insurance
Planning ahead for future long term care needs is key to protecting your retirement assets. Many have had a first-hand experience with a loved one who needed long term care. These personal experiences stress the reality of the financial and emotional stress when someone needs long term care.
Long term care insurance also 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. Plus it enables you to choose where you’ll receive any care needed in later years. This article will help you choose the best long term care insurance protection 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.
Probability of Needing Long Term Care
Those turning age 65 today have about a 70 percent chance of needing some type of long term care in their lifetime. One-third may never need long term care, but 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 2021, the average cost for 3 years of long term care in California is $438,000 ($146,000 per year). That cost is projected to be $791,076 ($263,692 per year) in 2041.2
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. But 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 you need 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, because:
- 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 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
You have the choice of Traditional LTC Insurance and Hybrid LTC Insurance in California. Each has its advantages depending on your situation. Our licensed professionals will give you 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. California Partnership for Long Term Care policies are in this category. 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 by paying 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. This gives you tremendous leverage of your premium dollars.
California Partnership for Long Term Care
California Partnership for Long Term Care policies are available. Partnership 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.
California Partnership for Long Term Care policy rates are like regular policies. Still, we recommend comparing them with non-Partnership policies because you may find other options better suited to your needs. This includes Hybrid Long Term Care Insurance plans not available under the California Partnership for Long Term Care.
California Partnership for Long Term Care Reciprocity
California does not participate in the national reciprocity agreement. If California had Reciprocity, you could buy a qualifying Partnership for Long Term Care policy in another state and maintain the special asset protection benefit when moving to California. The State of California would then recognize accumulated asset protection for Medicaid (Medi-Cal) qualification if you’re already receiving benefits from your LTC Partnership policy before moving to California. The majority of states have Reciprocity, but not all.
Cost of Long Term Care in California
These 2021 California long term costs can help you decide how much LTC insurance you need. This compares all three types of long term care: Nursing Facility, Assisted Living and Home Care costs across the state.
Cost of Long Term Care in California – 2021 (annual)
|Region||Nursing Home (private room)||Nursing Home (semi-private)||Assisted Living
|Home Health Aide (44 Hrs/wk)|
|Los Angeles Area||$135,233||$109,500||$63,000||$70,928|
|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|
How Much Does LTC Insurance Cost in California?
The average 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 select:
- Benefit Period
- Daily Benefit
- Elimination Period (a deductible in days)
- Inflation Protection (if chosen)
CLICK HERE For California Long Term Care Insurance Quotes >>
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
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One Stop Shopping
Compare California Partnership for Long Term Care Companies, Quotes and Policy Costs. We’ll help you compare the best companies and plan options side by side. We also provide detailed comparisons to the AARP LTC insurance offering.
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We impartially shop the market of top-rated insurance companies and help you find not only the best rate, but the best company. We’ll give you the rates, ratings, and reviews of the companies that sell these types of policies.
1. 2021 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 10/27/2022
2. Cost of Care Survey 2021 (Genworth.com), site accessed 10/27/2022
3. Family Caregiver Alliance (www.caregiver.org), site accessed 10/27/2022