Author Archives: Katie

Welcome to our new long-term care insurance blog for California!

Who is California Long Term Care Insurance Services, Inc?

We have become California’s largest independent long term care insurance brokerage. The organization is run by four professionals who, together, have 100 years of exclusive long term care insurance experience, and have sold $50,000,000 of long term care insurance premiums. We expect to continue to grow over many years.

The brokerage has appointed agents statewide. Most of these agents have had many years of long term care insurance experience, and as a group, they are among the most highly trained in the industry. They represent many of the top long term care insurance companies. The agents are given the ability and motivation to custom-tailor a plan to a client’s individual needs.

We specialize exclusively in long term care insurance. Long term care insurance has become a very complicated product to understand. We believe you deserve expertise to guide your long term care decision, just as you would utilize the expertise of an attorney to guide your estate planning.

Our Mission

The mission of California Long Term Care Insurance Services is to enable Californians to retain their dignity, independence, and assets in the increasingly likely event that they will become sick or injured and need long term care.

Our Goal

Our goal is to give service to our clients the way we would want an agent to give service to us. We strive to have integrity in what we say and do, keep the promises we make, and respect the dignity of our clients. We believe that we are rendering a service that is a needed and essential one for many Californians.

Headquarters – Northern California

1601 Bayshore Highway, Suite 205

Burlingame, CA 94010

(800) 303-1527

Long Term Care insurance premiums can be tax deductible

IRS increases 2020 tax deduction limits for LTC insurance
The 2020 deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:
Attained age before close of tax year 2019:
40 or less: $430
More than 40 but not more than 50: $810
More than 50 but not more than 60: $1,630
More than 60 but not more than 70: $4,350
More than 70: $5,430
These amounts can be an itemized deduction for individuals and businesses. Specific details depending on your situation & business type.
Get in touch with us for a detailed written description and a customized quote for Long Term Care insurance or Life/LongTermCare plans.

Long Term Care Insurance Cost

You can likely guess that long term care insurance costs might be a valid concern while planning for the future.  After all, in California, the average cost of a shared room in a nursing home is about $300 and for a private room, the cost is about $350 per day.  So, how much is the insurance that pays for nursing home care?

We’ll talk about the cost of long term care insurance, but first we need to be on the same page about what it costs if you or a loved one needs long term care. 

Long Term Care Costs

If you haven’t looked at the numbers yet, this is going to be a shocker.  These numbers are for the state of California.

  • Pulling in the $300/$350 per day, that’s $109,500 to $127,750 a year, on average. 
  • High cost of living areas like San Francisco, San Diego, and Los Angeles demand much higher payments – even up to $497 per day, which is $181,405 per year. 
  • The average stay in a nursing home is 2.5 years.  That’s $273,750, on average, for a shared room. 
  • If a couple needs care, the costs are doubled.  That’s $547,500. 
  • Shockingly, these fees are for basic care; they don’t include personal products like Depends, sitters and attendants, or getting your hair or nails done. 
  • And, lastly, an important question:  With health care costs skyrocketing at more than 4% annually, how much will that nursing home cost by the time you need it?  Yikes! 

Long Term Care Insurance Costs

This is actually good news:

  • All the premiums, you pay over your entire lifetime, will likely be less than the cost of one year in a nursing home. 
  • You can pick a long term insurance policy that fits your budget.  If premiums are going to take food off your table, you shouldn’t buy it, but, otherwise, there are a myriad of ways to make it work. 
  • Long term care annuities allow you to get ALL your money back if you don’t use it to pay for LTC. 
  • Costs depend on how much protection you buy, the options you select, your age at purchase, and your health when you apply for coverage. 
  • Costs vary widely, depending on your coverage selections as well as your age and health.  For example, long term care insurance costs may range from a $1,500 to $7,000+, depending on your individual situation and goals. 

We know the numbers can be overwhelming and you’re not sure what numbers will end up applying to you.  But, we can’t provide specific information for everyone on a website, so we offer a free information conversation.

You are entitled to a free, no-obligation analysis of your individual situation.  Contact us to find out your long term care insurance cost and plan options.  Be sure to ask about long term care annuities as well.  Call now to get the answers you need so you can stop worrying.

November is Long Term Care Awareness Month

How will you pay for Long Term Care services?

People work a lifetime to accumulate assets to see them through retirement. Unfortunately, relying on those assets to fund long-term care services may mean:
• Selling stocks or property, cashing in CDs or dipping into 401(k) or savings accounts
• Paying unexpected capital gains tax, income tax and potential surrender charges
• Foregoing returns the liquidated assets were expected to generate
• Abandoning plans to leave an inheritance to children and grandchildren

Planning now means having better choices later.

Long Term Care Insurance in California

If we had a magic wand, we’d wave it over the beautiful state of California and endow each resident with good health and long term care insurance in California.  California residents would stop worrying and start sleeping better at night, knowing their future care was guaranteed and they would never have to impoverish themselves or be a burden on their families. 

Our magic wand is still in development.  So, in the meantime, if you want to rest, assured that your bases are covered for the future, you’ll need to take action.

Your first step is to read on.

The 4 Ways to Pay for Long Term Care in California

There are 4 ways to pay for long term care in California and we’ll provide highlights of each:

  1. Private pay
  2. Long Term Care Insurance in California
  3. Medi-Cal
  4. Veterans’ Benefits

(Medicare isn’t listed because it’s health insurance, not long term care insurance.  You can’t count on it to pay for long term care.)

Private Pay for Long Term Care in California

If you have gobs of money, you could self-insure and private pay for your long term care; however,  

  • In 2020, California nursing home costs average about $300 for a shared room and $350 for a private room.
  • If you’re in an urban area such as San Diego, Los Angeles, or San Francisco, rates are much higher, up to $497 per day.
  • Let’s figure that out.  Average nursing home stays are about 2.5 years to 3 years, so we’ll use the 3-year cost factor.  Here goes:  Even if we took the lowest rate of $300 × 2.5 years × 365 days, that’s $273,750.
  • If your spouse or partner needs the same care, we’d have to double that fee to $547,500.
  • And, surprisingly, this doesn’t cover everything such as an attendant, medical co-payments, clothes, haircuts, toiletry supplies, and the hairdresser.

Is private paying for long term care in California a good option for you?

Long Term Care Insurance in California

Long term care insurance in California pays for care at home or in an assisted living facility or nursing home.  Policies are customized so that you can:

  • Include a deductible to reduce premiums
  • Purchase policies of different lengths such as a 3-year policy or a 5-year policy.
  • Get your insurance premiums back if you never use the policy.
  • Buy a life insurance rider to leave an inheritance for loved ones or pay last bills.
  • Include an inflation rider so that your coverage increases as California long-term care fees increase.
  • Consider a myriad of other features that are a good fit for you.
  • Fees for Long term care insurance in California vary depending on your age, health, and the features you choose.  It’s essential that you consult with a highly qualified LTC insurance professional who knows his or her stuff!

Wouldn’t it make sense to find out more about long term care insurance in California?

Medi-Cal instead of Long Term Care Insurance in California

Medi-Cal is an important and valuable program.  It pays for health care and nursing home care for those who are impoverished.  To qualify for the program, you must have next to no assets and little income. 

  • This means you must spend down nearly all of your assets to qualify.
  • In addition, all of your income, such as your social security check or pension, will go to the nursing home, not to you.

If you’re truly impoverished, living below the poverty line or close to it, Medi-Cal is a fantastic safety net and you should further explore its benefits.  You are why Medi-Cal exists. 

However, if your income and assets are not at the poverty level, it likely makes sense to explore other ways to pay for long-term care.

Veterans’ Benefits to Pay for Long Term Care in California

In great appreciation of service to our country, the government does provide limited veteran’s benefits to pay for long term care in California.

  • These benefits are limited to veterans and their spouses, who have few assets and very low income.
  • The veteran must have served a minimum of 90 days, with at least one day during wartime.
  • This program is called Aid and Attendance.

The bottom line is that there are 4 ways to pay for long term care in California. Be sure to analyze your California long term care payment choices, before you need them.  If you would like our help, contact us, we’ll be happy to assist in any way we can.  We look forward to hearing from you.

What are the Odds?

Long Term Care  is one of the most pressing issues and likely the greatest retirement expense facing Americans today– it will only get more urgent as the nation ages.

Consider this:

  • The number of persons aged 65 or older is expected to double in the next 20 years; there will be 110 percent more people 80 or older
  • At least 70% of people over age 65 will require some long term care services at some point; more than 40% will need care in a nursing home
  • The cost of long term care in the U.S. has steadily increased, and most of these increases are outpacing inflation
  • The national average median cost of one year in a private nursing home room is over $90,000.

what are the odds you'll need long term care?It’s important to consider care options while a person is healthy. That’s when the best rates and options are available and families are in much better emotional shape to discuss long term care-related planning. The simple truth is that during a crisis, situations can quickly escalate and cause tension or introduce issues that could have otherwise been avoided.

While there is much to gain by talking as soon as possible, there’s a staggering amount to lose if we miss the chance. The list is long, but here are just a few things you should know now, rather than discovering them the hard way later:

  • Health insurance and Medicare cover virtually none of the cost of nursing homes, assisted-living facilities or in-home care– the care many people require late in life. Many people pay out of pocket until they are practically destitute and then Medicaid kicks in. Many who thought they had saved adequately end up impoverished, getting substandard care.
  • Without a durable power of attorney (a simple document that is easy to obtain), you may have to go to court to gain guardianship over your parent so you can handle his or her affairs if he or she becomes incompetent. Guardianship is necessary so you can handle your parent’s affairs. Going to court is expensive, time-consuming and stressful.
  • A loved one’s health status can change overnight. It’s better to have long term care plans and insurance in place prior to their health taking a turn. At that point it may be cost-prohibitive or simply may no longer be an option due to the age or health of the person who will need care or coverage.
  • Many of the best care facilities have waiting lists, and some of them require that your parent be able to live independently in order to move in.
  • Sometimes it is not the big health problems that ruin the golden years, but the smaller annoyances– the inability to pursue a loved hobby, the difficulty hearing, or the fear of falling. When you talk, try to get at these less obvious issues too, as many of them can be resolved.

Being prepared will mean less work, less stress, less worry and fewer regrets. Talk. Talk now. Because we need to prepare for aging like we prepare for everything else in life

If you are ready to talk to a long-term care insurance expert call
us today at (800) 303-1527.

Long Term Insurance Quotes

If paying for long term care is on your mind, you’ve come to the right place for good information and free long term care insurance quotes.  If you want to get started immediately, contact us now for a free quote, with no obligation.

However, if you’d like more information, we invite you to read the next 300 words.  In just two minutes, we’ll point out 3 things you need to know when you compare long term care products and pricing.

The Top 3 Things You Need to Know About Getting Long Term Care Insurance Quotes in California

We feel obligated to provide a few words of advice so you are armed with good information when you’re investigating long term care insurance costs and options.

When you ask for California long term care insurance quotes:

  • Be sure you are comparing apples to apples and not apples to oranges.  This means that there are many different options and a myriad of long term care products available.  Be sure that the product selections are the same when comparing quotes. 
  • Then, take into consideration the quality of the company as well.  You need to make sure that the insurance company will still be there years from now, when you need it.   In addition, you need to understand whether the premiums can be raised and, if so, how often and by how much. 
  • Lastly, consider products other than just straight long term care insurance offerings.  For example, long term care annuities and the hybrid of life insurance with an LTC rider are really hot now.  Find out whether either would be a good fit for you. 

How to Get a California Long Term Care Insurance Quote

Whether you want a quick quote to compare to others you are gathering or you want to ask questions and get professional guidance, we have a team of highly trained professional ready to take your call. 

Of course, there’s no cost or obligation when you call to learn about California long term care insurance products or to get a quote.  We look forward to serving you.

 

Should You Terminate Term Life Insurance for Long-Term Care Insurance?

Agent talking to prospectsIs it a good idea to terminate a term life insurance policy and use the money to buy Long-Term Care Insurance? This was the question a healthy individual, age 65, who is planning to work full-time until 70, and has a wife age 55, asked.

Term Life Insurance is one of the cheapest ways to ensure maximum financial protection for your dependents. It would not be ideal to terminate term life Insurance, as his goal is to provide financial protection to his wife in the event of death.

Long-Term Care Insurance would help in paying for assistance, if he becomes chronically ill or disabled, and requires assistance with activities of daily living. The premium will depend on various factors such as age, current health condition, the limits of benefits chosen, etc.

Long-Term Care Insurance should be bought considering the affordability to pay the premium even after retirement. If the premium payment becomes unaffordable and he stops paying the premium, the policy terminates, and all benefits accrued will be lost.

The decision to buy Long-Term Care Insurance should be based on his income, expenses and other finances before and after retirement. Also, family longevity and other health concerns are to be kept in mind.

Younger individuals have an alternative that is more flexible and can relatively be more affordable than Long-Term Care Insurance. That is buying a Whole Life Insurance Policy, with a Long-Term Care rider.

Whole life policies are costlier than the Term Life Insurance, but they have a savings element added to the insurance benefit. It builds cash value for as long as you pay the premiums. The Long-Term Care rider is a relatively cheap add-on when compared to a standalone Long-Term Care Insurance policy. It should be considered carefully, as the benefits available under the rider may be less restrictive.

Proper planning is needed when it comes to your future financial health. To get the facts and understand all the options available based on your own unique needs; fill out the form to the right to download your long-term care insurance planning guide today.

The information is free; the results could pay you hundreds of thousands of dollars when you need it most.

Critical things many people don’t know about Long-Term Care Insurance

Things people don't know about Long-Term CareLong-Term Care Insurance plans have come a long way in offering convenient and flexible long-term care solutions, since the early days. Still, there are certain misunderstandings and objections in the minds of some people. Let’s have a look at some of these…

The most common misunderstanding regarding long-term care insurance is that it provides only nursing care benefits. But, the fact is that it covers home care for a person who opts to “age in place” as well as adult day care and assisted living facilities. American Association for Long Term Care Insurance (AALTCI) statistics shows that Home Care claims are the most among newly opened long-term care insurance claims in recent years.

Today, the benefits payable under long-term care insurance policies are very flexible. Most policies offer services such as home modifications to make your stay at home longer and safer. Modifications such as widening doorways, building wheelchair ramps or installing lifts and handrails are provided under long-term care insurance policies.

The role played by family caregivers is very critical in long-term care. Long-term care insurance policies offer options that make it comfortable for families to care for the elders in their family. Care giver training for family members is provided to ensure that the recipients are getting the best possible care. Even, care provided by family friends, acting as informal caregivers, is reimbursable under some policies.

If the one insured person exhausted his or her benefits, he or she can use the benefits available to his or her spouse. This enables the couples to share their coverage and maximize the benefits. Many Long-term care insurance policies offer this optional benefit called “shared care”.

Long-term Care Insurance policy should be a key element in your retirement plan. It is always better to plan ahead and start early. Age and health conditions are the two most important factors when you are looking for an insurance policy. At a younger age, these factors could be more favorable to you. The coverage will be affordable too. Younger age doesn’t imply that you don’t need any care. Accidents and illnesses that can lead to availing extended personal care can happen at any age. So, It is always better to start early.

The need for long-term care increases, as people are beginning to live longer. As the AALTCI states that during the year 2014, the total amount paid as benefits under Long-Term Care Insurance by the insurers has gone up from $7.5billion to $7.85billion, benefiting about 250,000 individuals. It is true that people underestimate their life expectancy and aren’t prepared to meet the consequences of not planning.

Getting the conversation started about long-term care insurance planning is easy. Simply fill out the form to the right and download your free planning guide today. A specialist with California Long Term Care Insurance Services will help you understand your options and pick the plan most appropriate to your unique needs.

What Would Your Financial Planner Do About Long-Term Care Insurance?

Long Term Care PricesIn a recent New York Times article, Marguerita Cheng, a certified financial planner expressed how happy she was that her father followed her recommendation to purchase long-term care insurance at an earlier age.

Marguerita was quoted saying, “he had bought a policy when he was 68 with a $125 daily benefit with 5 percent simple inflation protections… Last year, his daily care cost $256 but almost all of it was covered because the benefit had increased to $219.75”. Unfortunately, Marguerita’s father passed on at the age of 82.

The article explained that while long-term care insurance isn’t for everyone, it can helps those people greatly that want to preserve their estate, or be able to receive top-notch home care, and quality nursing home care when their health requirements demand it.

Keith Singer, also a certified financial planner and owner of Singer Wealth Management in Florida, was interviewed and expressed that most of his clients have long-term care insurance policies. Keith recommends them to everyone with at least $500,000 in assets, and says that most people buy in the 50s and 60s to avoid the higher costs and risks of denial when buying later on in life.

Several other financial planners also discussed how some people are turning to hybrid policies that combine items such as life insurance and annuities with long-term care insurance benefits. While these types of policies can require a greater investment in premium dollars, they work because if you do not need to access the long-term care insurance benefit, you can still access potentially tax-free income in retirement.

There are a number of ways to reduce your costs when considering long-term care insurance as part of your retirement planning. These methods can include opting for a lower inflation protection rate, or longer elimination period; the amount of time that passes before LTC benefits start to pay.

Finding out what options can best fit in your unique financial situation, you should speak with a licensed professional about long-term care insurance planning today. The consults are free, and you could learn about retirement strategies that not only provide you peace of mind financially, but that also can help you maintain your dignity through quality health care when needed.

Contact your licensed California Long Term Care Insurance Services specialist today for your consult about long-term care insurance planning.

Source: http://www.nytimes.com/2015/12/26/business/long-term-care-insurance-can-be-costly-but-effective.html