Tag Archives: long term care insurance prices california

Do Long Term Care Insurance Numbers Make Sense for The Policyholder?

Long Term Care PricesAccording to a recent article published by the National Association of Health Underwriters it was disclosed that, “a 60-year-old who pays premiums through age 82 (on a statistically representative policy), then show how 22-years of premium payments would quickly be returned after just five months on claim. By comparison, a 60-year-old without insurance would have to set aside $1,666 each month (at 2% interest) to achieve what our LTCI policyholder can leverage with just $188 per month” (Forman, 2015, pp 4-5).

Additional statistics were given in this article that spoke to the growth of long term care insurance numbers, not only in California, but also across the country. As it stands right now, there is an estimated face value of policies in force that is $1.98 Trillion Dollars. The NAHU article talks about the long-term care industry and claims experience, based on the total face value premium of just under 2 Trillion, it is estimated that just under $700 Billion Dollars of claims will be paid out on the current policies in force. The article offers a comparison to its most recent statistic that in the US, in 2010 roughly $210 Billion Dollars was paid out in long term care insurance claims.

It is clear that the long term care insurance need is in growth mode as more and more baby boomers begin looking at their future, and more importantly, the quality of care they will receive when no longer able to care for themselves independently, or with a little assistance. Long term care insurance is not always the most fun conversation to have, and with the complex and often confusing system in California, it can be an uphill battle.

It is important when planning your future to consider the help of a licensed and qualified professional. You already use doctors to help you heal, accountants to help you with financial records, and attorneys to assist with legal concerns; it is time to enlist the help of a California long-term care specialist so you can make an educated decision about your future health care needs.

Fill out the form to the right, get your guide to LTCI and contact your California Long Term Care Specialist today and get started with your planning. This service is Free!

Reference:

Forman, S.D., (June 2015) “Dog Bites Man”, National Association of Health Underwriters, retrieved 08/02/2015 at http://newsmanager.commpartners.com/nahultci/issues/2015-06-16/3.html

Winning in the Second Half

Join us on November 14 for an informational webinar on “Winning in the Second Half”, no this is not about football. This is about preparing for the second half of your life, the retirement half. What are your plans? How do you plan to live and where? How will you pay for it and more importantly for the healthcare needs that arise?

We will be discussing these topics, and more, during the webinar. The idea is to provide you with our thoughts and ideas to help you be better prepared to” win the second half”. Let’s face it losing is never fun and losing this second half can mean the difference between enjoying what you worked hard for or watching it all evaporate from lack of planning. Every good coach has a contingency plan; this webinar will help you think about putting that plan in place…if the time is right.

Winning in the Second Half

Life can be considered in two parts: working years and retirement years. This workshop describes the risks people face, along with ways to mitigate those risks and meet long-term goals.

Register for a session now by clicking a date below:

Thu, Nov 14, 2013 9:00 AM – 9:45 AM PST
Thu, Nov 14, 2013 1:00 PM – 1:45 PM PST
Thu, Nov 14, 2013 6:00 PM – 6:45 PM PST

Once registered you will receive an email confirming your registration with information you need to join the Webinar.

System Requirements

PC-based attendees
Required: Windows® 8, 7, Vista, XP or 2003 Server
Mac®-based attendees
Required: Mac OS® X 10.6 or newer
Mobile attendees
Required: iPhone®, iPad®, Android™ phone or Android tablet

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 $214 and for a private room, the cost is about $286 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 $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.

Annuities and Long Term Care

Are you someone who thinks there’s absolutely nothing wrong with having your cake and eating it to?  We agree!  And, certainly, the best way to describe annuities with long term care riders is to use this cake analogy. 

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.

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:

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.

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.

Read more…

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.

Long Term Care Insurance Partnership Programs In California

Long Term Care Insurance Partnership Programs – Shielding your Assets from Medicaid Spend-down & Estate Recovery

Article Source

Before you can qualify for government aid, Medicaid requires that you spend down your assets by paying for your long term care, until you are basically at poverty level. If you have a spouse/partner that depends upon your assets for a decent quality of life, it is wise to plan ahead to protect your estate for the sake of your loved one’s comfort.

Many people try to give away their assets to family or trusts as soon as they know they will need long term care, but this isn’t a smart strategy, nor is it as easy as it used to be. Depending upon the state, Medicaid’s “look back period” can reach back as far as 5 years.

However, if an individual owns an LTC insurance policy, it can buy them some time. How? Assets can be protected if a policy pays out for as long as the Medicaid look back period. Of course, a person using this asset protection strategy will need to plan ahead by buying a regular Long Term Care insurance policy (while they are healthy). It must pay out for the entire look back period or else the individual risks having to self-pay any remainder, which could be a financial disaster.

This is where a Long Term Care insurance Partnership Program policy can help.

State Long Term Care insurance Partnership Programs join the forces of Medicaid and private long-term care insurance companies. Who might benefit from these programs?

* Those who can’t afford to self-pay expensive long term care and also

* Can’t afford a Long Term Care insurance policy with higher benefits, but

* They have too many assets to be able to qualify for Medicaid.

For people who have some assets to protect (for themselves or their loved ones) and enough discretionary income to pay for basic LTC insurance (lower benefit amounts, without all the bells and whistles), a Partnership Program may be just the thing.

All of the Partnership Programs that have been created since the Deficit Reduction Act of 2005 have certain requirements:

* They are tax qualified.

* They must provide annual compounded inflation protection for people 60 years old or younger and “some type” of inflation protection for those who are 61 – 76 years old.

* They protect your assets dollar for dollar, meaning that for every dollar your LTC Partnership policy pays out you get to keep a dollar of assets. If you buy a $200 per day 3 year policy you will get to keep $219,000 of your assets for yourself or your partner, plus whatever your state Medicaid allows everyone to keep.

The biggest drawback with Partnership Programs is if for some reason your long term care needs exceed your policy benefits, you will end up on Medicaid. If you’re very lucky, the facility you originally chose will have an open Medicaid bed, but don’t count on it. You could also be sent to an open Medicaid bed in another care facility that takes both private pay and Medicaid recipients. Lastly and most likely, but least desirable, you could be sent to a Medicaid-only care facility. However, having an LTCi policy might postpone an unpleasent move.

Long Term Care Scenario: Your Partnership Program Long Term Care Insurance policy pays for a room in a nice facility or even at home. The insurance benefits are eventually depleted and you qualify for Medicaid. The state starts paying their part of your long term care, but you must move to a facility with an available Medicaid bed. BUT…if there are no Medicaid beds available in your state, you can stay in the higher end facility until there is an open Medicaid bed. This means, if you originally chose a facility close to home, it will be easier for your friends and near-by relatives to visit you. So you’ll likely enjoy your living conditions better than if you had to move.

If you have protected your assets with Partnership Program policy, and you finally do have to go to a Medicaid facility, you will have some assets saved that can make your life a little more pleasant.

State LTC Insurance Partnership Program Caveats:

* Partnership program protects assets, not income. If your income is too high, you won’t qualify for Medicaid when a Partnership policy runs out, so it wouldn’t be your best bet. You may want to consider a standard LTCi policy with a longer benefit period.

* For individuals with income less than $20,000 or couples with incomes less than $40,000, paying Long Term Care insurance premiums may not make financial sense.

* If you move to another state, the Partnership policy will pay, and the “benefit-matching” will accumulate toward your asset protection, but you may have to move back to the state in which you bought your Partnership policy in order to qualify for Medicaid and take advantage of any asset protection you gained. Some states have reciprocal Partnership Programs, but it is wise to find out how they work together before making a move.

* The inflation protection wording that qualifies policies for Partnership Programs is vague. It says that policies must provide Annual Compounded Inflation protection for people under 61 and Simple Inflation for those ages 61-75, yet it doesn’t specify any percentages. Many private Long Term Care insurance policies have inflation riders of 5% Compounded or 5% Simple and for good reason. The care sector’s inflation rate is about 6% per year, so a 5% Compounded is a smart choice. If your State’s Partnership Program offers less of a percentage, make sure you have enough savings or assets to help cover any possible future costs.

In what phase of LTC Insurance Partnership Program creation is your State?

As of June 25th, 2009 *

Partnership Program Policies are currently for sale in:

AL, AR, CA, CO, CT, ID, FL, GA, IN, KS, KY, MD, MO, MN, ND, NE, NJ, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, VA

These States have an Approved State Plan Amendment:

AZ, IA

These States have documents available:

DE, MA, ME, MT, VT, WA

State Plan Amendments have been submitted in:

WY

No Documents Available – These States are in the planning phase or have no plans yet:

AL, IL, LA, MI, MS, NC, NM, SC, UT, WV, WY

There are 4 states that originally created Partnership Programs. They were grand-fathered in to the Federal Partnership Program. These are New York, California, Indiana and Connecticut. These states have different policy standards than the states that created Partnership Programs after the Deficit Reduction Act’ of 2005 was passed. Let’s look at New York for example:

New York offers four different Partnership policies, 2 Total Asset and 2 Dollar for Dollar. The Total Assets policies do just what they say, shield all your assets from Medicaid. The Total Asset 50 requires 3 years in a Nursing Home or 6 years worth of Home Care. Once the benefits run out, the policyholder can qualify for Medicaid regardless of the amount of assets he or she has accumulated.

But Buyers Beware! Since there is a longer period of facility or home care required, if you did not purchase a high enough daily benefit, there is a possibility that you could use up your assets by having to pay the difference between your policy’s daily benefit and the actual cost of care in your area.

For instance: Charlotte buys a Basic Policy Total Asset 50 policy with the minimum required daily benefit of $208 (the minimum for 2008). She lives in New York City and wants to stay close to friends and family, but the private skilled nursing facility rooms in her area cost from $250 to $476, with the average being $375 dollars per day. Charlotte could be stuck paying anywhere from $40 – $268 per day out of pocket. Over the lifetime of the 3 year nursing home stay, Charlotte would end up paying between $43,200 – $289,440 of her own assets.

The #1 Long Term Care Insurance Lesson: No matter what state you live in and what kind of LTC insurance policy you buy, make sure you buy enough protection to cover the long term care costs in your area. Check our Long Term Care Cost calculator for average care costs, then call a few long term care facilities in your area. You may also want to visit a few facilities to see if there is a difference between cost and quality of living/care.

Besides offering full asset protection, New York Partnership Policies also provide 5% annually compounded inflation protection for everyone age 79 or younger. Considering the rate of inflation, this is a very good thing! People 80 years old have the options of buying a policy without inflation protection.

* Check here for current State Partnership map: www.dehpg.net/ltcpartnership/map.aspx

If you have questions about how Long Term Care Insurance can help secure your future, please visit us at www.californialongtermcare.com.

Not Buying Long-Term Care Insurance Can Be a Costly Mistake for California Residents

Not Buying Long-Term Care Insurance Can Be a Costly Mistake

No long-term-care insurance? Uh-oh

You probably don’t need another bill to pay. But skipping this protection could destroy your finances, even long before you’re old, or vaporize your kids’ inheritances.

Read more…

Visit www.californialongtermcare.com for information and assistance with Long Term Care Insurance in California.