Tag Archives: long-term care insurance ca

Have You Accepted The Default Long-Term Care plan?

Default Long-term care planIn a recent article on Marketwatch.com by Retirement Reporter Elizabeth O’Brien, she discussed what the costs for long-term care insurance look like, and how people plan for their health care needs in the future when they are no longer able to care for themselves.

In O’Brien’s article, she references the average cost for a 55-year old couple on a common LTC plan to be around $5,000 per year in premium dollars. While that is a sizable amount for people to budget with insurance, O’Brien comments, “Consumers should think of long-term care insurance as one way to help defray the cost of home health aides or a care facility and to protect their hard-earned nest eggs in the process…”

The article continues on covering the common misconceptions about Medicare and custodial care. Unfortunately, many people believe Medicare covers long-term care expenses. The reality is, while Medicare may cover up to 100 days of skilled nursing, it is not going to cover long-term custodial care. There is a difference between skilled care and custodial care.

O’Brien offers from her research that the median annual cost for private rooms runs over $91,000, and a home health aide could run upwards of $45,000 or more. Without a solid nest egg in place, these costs could easily wipe out any savings available to most families.

An interesting point in the article is how people could end up with a “default long-term care plan”.

“Everybody has a long-term care plan, said Eileen Dunn, a geriatric care manager with Associates of Clifton Park, a Clifton Park, N.Y.-based company that sells long-term care and other insurance to clients of financial advisers. Those who do not consciously make a plan are on the “default plan,” Dunn said. “When something happens, you’re not going to have a choice.” That is, you’re not going to have a choice but to spend down your assets” (O’Brien, 2015, pp. 7)

If you have accepted the default plan as your option, then you should at least research “spend down” requirements for your State, so you know what will happen and how it will affect your family. You can usually get these requirements from the State welfare offices.

The choice is yours, make yours!

Choice 1: I am willing to lose the things I worked for in life.

Choice 2: I want to protect my assets and have a choice.

If you selected Choice 2 and would rather have options in your care, fill out the form to the right and contact a California Long Term Care specialist today to get the conversation started.

Reference:

O’Brien, E., (June 2015) Can you afford $5,000 a year for long-term care insurance? Retrieved 8/9/2015 at http://www.marketwatch.com/story/can-you-afford-5000-a-year-for-long-term-care-insurance-2015-06-25

Affordable California Long Term Care Insurance Premiums

Affordable LTCI Premiums

Katie O’ Rourke
Managing Partner

My husband and I are in our fifties.  A few years ago we were looking for affordable California Long Term Care premiums. We did our research,  decided to take the plunge and purchased Long Term Care insurance (LTCI).  Most of our friends are in the same age range.  I am often asked at social events how much the yearly premium is and people are surprised to hear that our premiums for our plans are $100 each per month. 

The average premium for LTCI is between $100 – $300 per month.  Everyone I talk to has heard that LTCI is expensive and expects to hear a number much higher. However, with the help of a licensed agent, you can find affordable California Long Term Care Insurance for around $100 per month.  

The premium depends on many factors. For example my car insurance could be a lot more expensive than it is but I chose coverage that keeps the premium lower and searched for discounts that would help, like a good student discount for our teenager.  LTCI is similar.  Some companies offer better deals than others depending on your situation.  Your health and marital status can impact the premium.  However, the biggest factor besides the coverage you select is your age; the younger you are when you purchase LTCI the lower the premium you pay throughout your lifetime. 

Besides the peace of mind, another thing that helps us my husband and I feel better about purchasing LTCI is that the premiums are tax deductible as a business expense. 

What I want you to take away from this blog is despite the conventional thinking, affordable California Long Term Care Insurance premiums are possible. We can find the best plan for your budget and give you details on the tax treatment for individuals and businesses.

To speak to a representative or schedule an appointment, simply fill out the form to the right to contact us.

Long Term Care Insurance in California

If we had a magic wand, we’d waive 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 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 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 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.
  • 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 long term care insurance professional, who knows 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.

NOVEMBER IS LONG TERM CARE AWARENESS MONTH

You were very wise if you already have purchased a long term care insurance policy. You were aware of the issues involved, protected your nest egg and obtained peace of mind.

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.

How to Find Affordable Long-Term Care In California

How to Find Affordable Long-Term Care

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:

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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.

Making Your Money Last In California

Making Your Money Last

Smart Moves for Life’s Big Events: Easing Into Retirement

By Laura Cohn

Before you ditch the daily grind for good, do a complete benefits checkup.

Sure, go ahead and pick a date for your retirement party. But get a handle on how you intend to manage your benefits and cash flow once you stop working.

Buy long-term-care insurance. If you’re still working, see whether your employer offers it. You may be able to get a good deal — particularly now that some firms are offering policies with reduced premiums. Just make sure you understand the limits of your policy (see Long-Term Care You Can Afford). For outside help, speak to a local agent who works with a range of insurers. The American Association for Long-Term Care Insurance can give you a list of agents in your area.

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To Learn more about Long Term Care Insurance, visit www.californialongtermcare.com.

Buying Long Term Care Insurance in California

BUYING INSURANCE
By Thomas Day

Why Should You Buy Long-Term Care Insurance?

1. It will help you keep your independence and dignity. Here’s how. . . some of you will spend all your assets on care while others plan to give their money away or put it in trust. With no assets you will now qualify for a welfare program called Medicaid. Medicaid typically pays for a semiprivate room in a nursing home, and; not all nursing homes take Medicaid patients. In many states it’s not easy to get Medicaid to cover home care or pay for assisted living. Many people want to stay at home, but with Medicaid may not be able to. And assisted living is rapidly becoming a preferred alternative to nursing home care for certain disabilities but Medicaid may insist on a nursing home instead.

A nursing home is not the most desirable place to finish out one’s life. For many, a terminal stay in a nursing facility robs them of a purpose in life and strips away their dignity. As an example, have you ever thought of the indignity of being bathed, toiletted or diapered in a nursing home environment? No wonder many people express the desire to die before ever having to go into a nursing home.

For some conditions a nursing home is the only alternative, but for many long-term care patients there are more options than nursing homes. A good long term-care insurance policy covers those options and when all else fails, it pays for nursing homes too.

2. If you are married and you have a need for long-term care, your spouse may be forced to pay for an outside care giver. The cost is likely to come from your combined income and assets. If the need for paid care drags on too long, your spouse may be left with minimal cash assets for future needs. Insurance solves this problem and allows your spouse to keep the assets.


Continue reading…

Visit www.californialongtermcare.com for more information regarding Long Term Care Insurance in California.

LTC Insurance Prevents Financial Wipeout In California

LTC Insurance Prevents Financial Wipeout In California
By Jennie Phipps • Bankrate.com

Long-term care insurance is a tough sell, yet it’s something middle-income people with substantial nest eggs should consider since the need for personal care can quickly deplete financial reserves. A relatively new partnership program adopted by many states may make this insurance more palatable to more people.

Why consider it? The likelihood of filing a claim for long-term care is higher than for a home wrecked by fire. A 65-year-old man has a 27 percent chance of entering a nursing home at some point in his life; a 65-year-old woman faces a 44 percent probability of doing so, according to the Centers for Medicaid and Medicare Services. The cost of a private room in a nursing home averages more than $70,000 per year.

State governments on average spend 18 percent of their general fund budgets on Medicaid. But Medicaid doesn’t pay the bill for those with financial resources. The jointly funded, federal-state health insurance program is designed for low-income, needy people. Medicare, the federal health care program for those over 65, doesn’t cover routine nursing home care.

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If you would like more information about Long Term Care Insurance, visit www.californialongtermcare.com.

In California: Study Reveals Cost of Long-term Care Insurance

Study Reveals What Americans Pay for Long-term Care Insurance

What individuals pay for long-term care insurance can range significantly from about $700 a year to as over $13,000 per year according to a study from the American Association for Long-Term Care Insurance.

Individuals purchasing long-term care insurance paid as little as a few hundred dollars to as much as $13,000 a year according to a new report from the American Association for Long-Term Care Insurance.

“People are misled by reports that reflect averages and have the belief that this important protection is expensive,” explains Jesse Slome, Executive Director of the industry trade group. “Averages include costs paid by those who buy Cadillac plans of protection at older ages when the costs are extremely high. Averages do not reflect what most people pay.”

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Visit www.californialongtermcare.com if you need more information regarding Long Term Care Insurance.

A New Long-Term Care Insurance Program In California

A New Long-Term Care Insurance Program
By Paula Span

The measure signed into law by President Obama this month contains a little-remarked insurance program designed to help Americans pay for long-term care.

I’ve read so little about the Class Act in recent weeks that when President Obama signed the health care bill yesterday, surrounded by a gaggle of happy Democrats, I had to call the National Council on Aging to reassure myself that yes, this often overlooked but potentially transformational program remained part of the package.

“It’s the law of the land as of this moment,” said the council’s president, James P. Firman, still sounding a bit dazed by the whole drama. “And there’s nothing in the reconciliation bill about it, no language in there at all. It’s the law, and it’s not going away.”

Wow.

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Are you thinking about Long Term Care Insurance? Please contact us for more information from a source you can trust! Visit  www.californialongtermcare.com or call 800-303-1527.