Deciding to buy a long-term care insurance policy is an important decision. These policies can help pay for many types of long-term care, but they are not for everyone. We will give you some guidelines commonly accepted in the next section to help you determine if this type of policy may be right for you. If you decide to buy, make sure you compare the costs and benefits of policies from different insurance companies and only those with top ratings. Our Long Term Care Insurance specialists are available to help you with this process.

What does it cover?

Long-term care insurance policies typically cover nursing home stays, community services such as adult day care, in-home care and assisted living facilities. Be sure to consider your desired type of care and choose a policy that covers you in that area. In other words, if your plan is to stay with your daughter in her home, then be sure you will be able to receive benefits in that setting.

A policy covering three to five years of care is the most cost-effective option for most people. However, if you are concerned about care for Alzheimers disease or other types of dementia, you may want to consider more comprehensive coverage.

Is it right for me?

Generally, financial planners recommend considering long-term care insurance if you own assets of at least $75,000 (this does not include your home or car); have annual retirement income of at least $25,000 to $35,000 for an individual or $35,000 to $50,000 for a couple; or are able to pay premiums without financial difficulty, even if premiums increase over time. Long-term care insurance is probably not for you if these factors do not apply to you.

Long-term care insurance can be expensive, depending on your age and health status when you buy the policy and how much coverage you want. Policy costs also vary according to the benefits you choose. It is better to buy long-term care insurance at a younger age when premiums are lower.

Where to go from here?

We hope this information has been helpful. The remainder of the material will provide an in-depth look into the tax considerations for individuals and businesses in regards to Long Term Care insurance, a Frequently Asked Question section and a Glossary of Terms.

If you feel that you would like personal assistance with Long Term Care Insurance or other planning issues, we are here to help.

Our LTCI specialists make your shopping experience easy, by helping compare the costs and benefits of policies from select insurance companies. To speak to a representative or schedule an appointment, simplycontact us.

Long term care insurance (LTCI) can help cover the cost of care you receive at home from nurses’ aides, home health aides and therapists. It can help cover services in an assisted living facility and, if you require skilled care, nursing home expenses can be covered.

It helps you maintain your dignity and financial freedom and gives you the flexibility to participate in making choices that impact your care — about the services you receive, where you receive them and who provides the care you need.

Someone who has a chronic condition or is returning from a stay in a hospital or rehabilitation facility may need these services, which can be covered by long term care insurance:

Nursing Home Care

Nursing homes give residents skilled nursing care 24 hours a day, along with medication monitoring, rehabilitation and physical therapy, room and board and personal care and supervision.

Skilled In-Home Nursing Care

In-home and live-in nurses provide skilled nursing services like clinical assessment and monitoring, intravenous therapy, ventilator and tracheotomy management and cardiac care.

Adult Day Care

Based in the community, adult day care centers provide daytime supervision, giving family caregivers much needed assistance. Along with social activities, they may provide health services and therapy.

Hospice Care

Hospice care furnishes medical services and emotional support for those in the last stages of terminal illnesses. Hospice helps patients manage their symptoms so they can continue an alert, pain-free life and spend their final days with dignity, surrounded by loved ones. It also helps their family members with the practical details and emotional challenges of caring for a dying loved one. These programs offer services 24 hours a day, 7 days a week, in homes, hospice centers, nursing homes, long-term care facilities and hospitals.

Personal and Home Health Aides

These aides help the elderly, disabled or ill with personal care like bathing, dressing, eating and taking medication. By receiving these services at home, people can remain in the comfort of their own homes longer

Homemaker Services

These aides help people complete those household tasks that they can’t manage alone, like housecleaning, cooking and running errands, making it possible for their clients to continue to live independently in their own homes.

Assisted Living Facilities

Assisted living facilities (or residential care facilities) can provide personal care and health services for people who may need assistance with activities of daily living, but not the level of care provided by a nursing home. Assisted living is an intermediate level of long term care, not an alternative to a nursing home.

Ready to learn more? Call us today at (800) 303-1527.

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 – U.S. Census Bureau, News Release, August 14, 2008
• 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 – U.S. Department of Health and Human Services, September 2008
• The cost of long term care in the U.S. has increased for the sixth consecutive year, most of these increases are outpacing inflation – Genworth Financial Cost of Care Survey, conducted by CareScout, April 2009
• The national average median cost of one year in a private nursing home room is $74,208 – Genworth Financial Cost of Care Survey, conducted by CareScout, April 2009

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 over night. 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.

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.

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 $214/$286 per day, that’s $78,110 to $94,170 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 $195,275 on average, for a shared room. 

• If a couple needs care, the costs are doubled.  That’s $390,550. 

• 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.

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 California Long Term Care

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
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 California Long Term Care

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

• In 2013, California nursing home costs average about $214 for a shared room and $286 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 $214 x 3 years x 365 days, that’s $231,045.

• If your spouse or partner needs the same care, we’d have to double that fee to $462,090.

• 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 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 lifetime 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.

• Long term care insurance fees vary depending on your age, health, and the features you choose.  It’s essential that you consult with a highly qualified long term care insurance professional, who knows her stuff.

Would it make sense to find out more about California long term care insurance?

Medi-Cal to Pay for Long Term Care 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.

If You Don’t Use It, You Don’t Lose It

The biggest complaint about long term care insurance is that no one wants to pay all those premiums and end up not needing the insurance coverage – after all, none of us want to end up in a nursing home and if we can avoid it, we will.

To meet that very concern, long term care insurance professionals have come up with a solution.  It’s life insurance with a long term care rider.  This product is referred to as a “hybrid” because it’s a combination of life insurance and long term care insurance.

Here’s What Our Clients Love About Life Insurance with Long Term Care Benefits

You absolutely need to consult with a professional to make sure the hybrid is a good fit for you situation, but, in the meantime, here are the things our clients love about life insurance with long term care rider in California.

• The best part of the hybrid is that if you don’t use the long term care benefits, your loved ones get a big payout.

• Your premium payments don’t go to waste.

• Your premiums are guaranteed; they will NEVER be raised.

Here’s What to Do Next

Your next step is to determine which kind of long term care insurance product is the best fit for you, if any.  

Life insurance with long term care benefits works for many folks.  To find out if it is right for you, we welcome your call , contact us.  During our conversation we’ll chat about the best way for you to pay for long term care.  There is no fee for this conversation, no obligation, and never any pressure to buy.  It’s okay to call right now.

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• Life insurance with long term care rider in California 
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Why Long Term Care Annuities Were Invented

What frustrates many folks (about paying long term care insurance premiums) is that they have to pay money for something they hope they never have to use – ‘tis the way with all insurance.  However, we are happy to announce that there’s good news.

Instead of losing your hard earned dollars, you can purchase an annuity with long term care benefits. 

Make sense?  Read on to find out how these annuities with LTC riders work.

How Annuities with Long Term Care Riders Work

If a long term care annuity is a good fit for you, you’d put a lump sum of money (e.g. $50,000 or $100,000) into an annuity.  You then receive an income stream from that annuity – part of that income goes into a long term care “pot” and part of that income can be used however you’d like.

• You can choose between immediate annuities and deferred annuities.  

• Your LTC benefits depend upon how much you put into the annuity. The benefits may be enough to pay for some or all of your care, depending on the income stream you chose to purchase.

• If you die without having used that long term care pot, the money goes to your loved ones.

Here’s Your Next Step

Because it’s important to analyze whether long term care annuities are right for you – or not, we invite you to call our offices. 

• At no charge and with no obligation, we’ll work through your paying for long term care options.

• If long term care annuity products are right for you, we’ll help you select the best fit.  If not, we’ll point you in the right direction.

To find out whether long term care annuities are a good fit for you, we invite you to contact us and let us help with your plans to protect yourself, your assets and family.  We welcome your call now.

However, unless a friend or family member has needed long term care, it is a subject many people know little about. You, who are informed, need to tell your friends that they had better consider a long term care plan while they are relatively young and healthy.

Because of our budget deficit, government benefits for long term care will surely be sharply reduced over the next ten years and will only cover the very poor. If people have not protected themselves, many horrible scenarios will ensue. Many will lack the ability to pay the half a million dollars or more of future care expenses.

These horrible scenarios can be avoided. We urge you to tell your friends and family members to seek professional guidance from specialists like us. If it is better for them to self-insure, we’ll tell them so, but let’s face it, no plan is a bad plan.

Stay healthy, and have a wonderful Thanksgiving.

For more information about Long Term Care plans, please request a quote here or call us at 1 (800) 303-1527.

A prolonged illness or chronic condition could end up being one of your biggest retirement expenses. Medicare pays for a maximum of 100 days of nursing home care before retirees must absorb the remaining cost themselves. However, depending on the level of assistance that you need, there are some inexpensive care options and ways to protect yourself from excessive long-term care costs. Here are a few ways to find affordable long-term care:

Read more…

To protect yourself from long term care expenses, let California Long Term Care Insurance Services help you get the protection you need. Visit us at www.californialongtermcare.com for more information.