Author Archives: Katie

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

Is 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.

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.

 

Who is California Long Term Care Insurance Services, Inc.?

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 three 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 solutions. There has been a growth of different products intended to solve long-term care problems, and we understand how all of them work. 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.

Contact Us

P.O. 460640
San Francisco CA 94146
info@cltcinsurance.com
Phone: (800) 303-1527
Fax (650) 692-5204

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 5 Ways to Pay for Long Term Care in California

There are 5 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. Life insurance or annuities with long-term care or chronic illness riders
  4. Medi-Cal
  5. 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?

Life insurance or annuities:

  • Life insurance or annuities with long-term care or chronic illness riders have become popular.
  • These pay a combination of a death benefit, a long-term care benefit, or a refund.
  • Qualifications to receive benefits are similar to traditional long-term care insurance policies.
  • The rates are normally guaranteed.
  • The cost is greater than the cost of traditional long-term care insurance because you get solutions to two problems instead of just one.

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 5 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.

Long Term Care insurance premiums can be tax deductible

IRS increases 2021 tax deduction limits for long-term care insurance. The 2021 deductible…

2021 tax deduction limits for long-term care insurance
Attained age before close of tax year 2020
Age Deduction Limit
40 or less $450
More than 40 but not more than 50 $850
More than 50 but not more than 60 $1,690
More than 60 but not more than 70 $4,520
More than 70 $5,640

Individual taxpayers are allowed to deduct the cost of their policy (and that of their spouse) as part of their medical expense deduction to the extent that their medical expenses exceed 10% of their adjusted gross income. Those who are self-employed or own an LLC, S Corp, or C Corp have more extensive deductions. Ask for our Tax Guide. Tax-qualified long-term care insurance benefits are generally tax-free.

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.

Life Insurance That Pays For Long Term Care? 2 Birds 1 Stone.

When people think of life insurance, in most cases, they think about end of life. However, did you know that some life insurance policies could also help while you are still alive?

In a recent news article on the spectrum.com they offered an example which, in certain life insurance policies you can opt for a rider that also pays long term care benefits. Should you access those benefits, your overall death benefit is reduced by that amount, up to the value of the insurance.

The long-term care riders are usually attached through an accelerated benefits rider, or extension of benefits rider. The accelerated benefits rider usually kicks in when it has been determined that your life expectancy is 12 months or less.

The extension of benefits rider is just like it sounds, not only do you get the life benefit, but the insurer may also offer long-term care, and for an extra premium, you can add that on to your life policy and have a more complete plan in place, and only pay one premium amount for the coverage.

If you are someone that has some assets to protect, has a concern about income in retirement, and has a concern about your health needs in retirement and like to plan, a life policy with a long-term care rider might be a good place to look.

Before taking any actions though, it is recommended that you speak with your qualified representatives to make sure the plan you are thinking about fits with your tax and other planning needs.

And considering that nearly 70% of people age 65 and older will require some form of long term care health assistance in their lifetime, it would be a wise decision to plan ahead before something happens that prevents you from qualifying for long term care insurance.

Long-term care insurance helps pay for medical needs that Medicare, disability, and normal health insurance does not cover. People that require long-term care often have trouble with performing ADLs (activities of daily living). These activities include eating, dressing, bathing, mobility, continence, or suffering from cognitive impairments.

To start learning about your available options, start your conversation with a California Long Term Care Insurance Services specialist today.

Fill out the form to the right and get started today!

Source: http://www.thespectrum.com/story/news/local/2015/10/08/life-insurance-riders-pay-long-term-care/73614456/

Long-Term Care Insurance Statistics That Affect Your Planning

In a recent Morningstar article on Long Term Care statistics, author Christie Benz, Morningstar’s director of personal finance and author of 30-Minute Money Solutions, outlined industry statistics you should know when planning your insurance needs in retirement.

According to Benz, “Ultimately, the decision about whether to purchase long-term-care insurance is a highly personal one, dependent on an individual’s or couple’s asset level and desire to leave a bequest, health history, and the peace of mind derived from having the coverage, among other factors.”

So what does some of the long-term care insurance and services look like by the numbers Benz researched?

  • 8 Million People experience problems with daily living activities, i.e., bathing, dressing, washing, eating, and other basic needs.
  • 13 Million Adults have difficulty living independently.
  • 44% of men will need long-term care services during their lifetime.
  • 58% of women will need those same services during their lifetime.
  • 4% is the 5 year annual inflation rate in nursing home costs for private and semi-private rooms. If you do not have an inflation rider on your policy, it is worth 4% less each year you own it.
  • $5,518 is the median total household wealth of people that have lived in a nursing home for 6 months or more. Do you think asset protection is important now?
  • $450 Billion is the estimate value of unpaid care provided by friends and family members caring for a loved one.
  • $7.8 Billion is the amount of claims paid for long-term care in 2014.
  • 45% is the number of applications denied to applicants’ age 70-79 who put off planning and now have health issues to manage.
  • 100% if you have not started planning, the time is now.

Contact your California Long Term Care Insurance Services specialist today for a no obligation conversation about your options. Start by filling out the form to the right and downloading your Free Guide.

Source: http://news.morningstar.com/articlenet/article.aspx?id=715947&part=1

Have You Accepted The Default Long-Term Care plan?

In 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