Category Archives: long term care insurance california

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 Premiums Tax Deductions

There are advantages that you might be eligible for with a Long Term Care Insurance policy.

• Do you own a business?
• Are you aware of the potential Long Term Care tax advantages of owning a business?

You might be interested in a Quick Reference Guide that gives a summary of Long Term Care premium tax treatment for different types of business entities.

Contact us for details

Are Canada’s Long Term Care Statistics A Predictor Of Things To Come?

Long-Term Care InsuranceAccording to the Government of Canada, long-term facility based care is not covered under the Canada Health Act, but controlled through provincial and territorial legislation. The recent shift in admissions requirements to long-term facilities based care settings reveals some shocking statistics on aging and long-term care health issue management.

In the November 23rd news article by, it was stated that, “Since 2010, when the government changed the admission criteria for long-term care, new residents have been coming to long-term care homes at a later stage in the progression of their diseases. Their health is more likely to be unstable, their health issues are more complex, and they are more physically frail.”

The article continues by outlining various statistics in the long-term care resident population. For example, there was a 29.6% increase in residents requiring monitoring for acute conditions. 62% of the residents suffered from Alzheimer’s, a 6% increase since 2010.

Assistance with “Activities of Daily Living”, which includes hygiene, toileting, and mobility rose 7.2%, 8.9%, and 11.6% respectively. 46% of residents act aggressively with 22.2% displaying signs of severe aggression related to mental health conditions such as dementia.

It really begs the question to be asked, if people were given access to facilities and services earlier, could their conditions have been managed better? Could they live with more dignity?

In the US, while there are some restrictions on long-term care facility admission, you can access more options at an earlier stage with proper planning. Access to home care benefits, assisted living, senior housing, and community-based services could help improve your quality of life as you age.

Setting a plan in place for your long-term care insurance needs will also relieve a lot of financial burden you can face during those years when the most care is required.

Consider having a talk with a long-term care specialist at California Long-Term Care Insurance Services. There is no cost or obligation, and the information you gain could protect your dignity and peace of mind in your retirement.

Get the conversation started today!


Having The Long Term Care Talk With Your Family

This year, like many others, millions of families around the US will sit down to a delicious Holiday feast, filled with laughs, stories, and family warmth. This year, when looking around the table, there are some numbers you need to think about.

1 in 9
1 in 4
2 in 3

According to the Alzheimer’s Association, 1 in 9 people age 65 and older develop Alzheimer’s. At age 85, that number jumps to almost one out of three.

Long-term care insurance can help cover the rising costs of care for people that develop Alzheimer’s and require treatment in a nursing home. Medicare does not cover this kind of health care setting. Long-term disability insurance does not cover this type of care either.

With annual care costs trending upward to $150,000 for a private room, if you don’t have a substantial nest egg set aside for long-term healthcare expenses of 2 years or more, it can ruin a family financially and emotionally.

The Society of Actuaries says that almost 1 in 4 long-term care insurance claims is from services received by people suffering from Alzheimer’s.

Industry statistics also show that nearly 2 in 3 people will require some form of long-term care assistance at age 65 and up. Maybe this year, it is time to talk openly with the family about plans to receive care when they can no longer do for themselves.

Putting a simple plan in place is easy, and getting professional guidance is no cost. The specialists at California Long Term Care Insurance Services are available to help you understand how to have “the talk” at no cost and no obligation to you.

In fact, they have put together a great report that you can get free right now that will give you great information on planning for long-term care needs, with affordable long-term care insurance options.

Fill out the short form to the right, download your guide and start “the talk”!

Shocking Discovery on as Long Term Care Insurance Industry Problem

Long Term Care Policy LapsIf you have been planning your retirement strategy, this is one way to quickly waste thousands of dollars.

According to a November 6, 2015 article, researchers have uncovered an issue that is plaguing the consumers of long-term care insurance. As you may already know, smart soon-to-be retirees help offset the massive costs of nursing homes and in-home care not covered by Medicare with long-term care insurance protection. According to Genworth, the median annual price of private room care is estimated at $91,250 – planning is just a smart thing to do unless you have hundreds of thousands of dollars in your savings for long-term care expenses.

The discovery researchers made is truly shocking… According to analysts and researchers at Boston College’s Center for Retirement Research, over 33% of policyholder’s age 65 experience a lapse in their policies before being able to access their benefits. To put that in perspective a couple age 55, purchasing an average of $165,000 of insurance would spend a combined $2,400 per year in premiums, over 10 years that is $24,000! When your policy lapses, you just lost $24,000 at age 65 as that couple.

You may already know through published statistics that people age 65 and older experience a health event that results in 70% of that population needing to access long-term care insurance and services. The sad truth is, when they did not plan their policies correctly from the start, and the time comes when the benefits are needed, they are no longer available. Not only did they lose the $24,000 the invested on premiums, they are also facing potential costs of $90,000+ per year that a vast majority of people simply do not have set aside. Long-term care service expenses can easily wipe out savings and any hope of leaving something behind for loved ones within a few short years.

Our own researches say there is hope though.

Proper planning involves a real and frank discussion about what your financial situation is, what plans you have in place to handle your affairs should you not be able to do that yourself, and making decisions prior to any health events so you have a plan in place when things take a turn for the worse. Admittedly, this may not be the most comfortable conversation to have, but when you work with a trained and caring specialist at California Long Term Care Insurance Services, you will quickly realize that your future health care needs can be handled without financial worry.

Your California Long Term Care Insurance Specialist researches the top rated companies, knows their financial standings, and can work to develop a plan that fits your goals and your budget.

Fill out the form to the right and get started today with a confidential no-cost no-obligation conversation now!


Plan And Save Your California Long Term Care Insurance!

Saving your LTC policyIn a recent article on Reuters the thought was presented that, long-term care insurance really is long term. When you buy a long-term care insurance policy, you are committing to paying premium dollars, sometimes for decades, until you access the benefits of that policy.

According to a recent study by Center for Retirement Research at Boston College, purchasers of long-term care insurance age 65 and older are letting the insurance policies lapse at a rate of over 30%! Nearly 1 in 3 people in this group who have paid out potentially thousands of dollars of insurance premiums are essentially throwing that money out the window.

So what is the reason this is happening?

The study concluded that, unfortunately, the people who need the coverage the most are the ones taking the financial hit. This segment of people are those who end up with cognitive impairments that will soon require care, or those on the lower end of income and wealth who would face the most impact from a medical financial crisis.

Having long-term care insurance is critical if you fall into the segment of population that is 70% of persons age 65 and older who will require some form of long-term care services during their lifetime. Long-term care insurance covers services received in nursing homes or through in-home care services as a coverage option. Medicare does not cover most of these services, which is a common misunderstanding among policy shoppers.

To put the potential costs you could face in a long-term care health services dilemma, per year costs of a private nursing home room could range from $70,000 up to $120,000+ depending on where you are in the country. In California, you should plan for the higher end of the cost spectrum.

If you want to have choices in your health care needs later in life, when other insurance does not cover those options, smart planning is needed to maintain your policy and dignity in long term care health and services.

What can you do about it?

Here are several steps you can take to avoid a lapse of coverage and loss of your financial premium investment.

First, when you consult with a California Long Term Care Insurance Services specialist (CLTC), ask them to make sure they find a carrier that will allow you to add a trusted friend or family member that can receive premium payment reminders. If you suffer from a cognitive impairment as your long-term care health need, you will need someone who can help maintain your policy and make decisions so it remains affordable and more importantly in force when those health expenses come due.

Second, work with your CLTC services specialist to be critical about planning the ongoing costs of your policy so that you do not find yourself making a decision you cannot afford for the long term. According to the American Association for Long-Term Care Insurance, a single 55-year-old male could expect on average an annual premium of $1,060 for $164,000 in coverage… females are a little higher at $1,390.

Third, work with your CLTC services specialist to set some decisions in place on what should happen if the insurance carrier has to take a rate increase to protect the longevity of its policyholders. These decisions could include reducing the daily benefit, or extending the elimination period (the delay in days to when a policy pays benefits).

Your CLTC services specialist can show you these decisions and how they would affect your premiums today, so you can know if you or your representative need to make them in the future what they could look like. You could also discuss reducing inflation coverage protection, or reducing the amount of time your policy pays out benefits, for example 3 years instead of 5 years.

Lastly, starting this conversation today with your CLTC services specialist is the best decision. There is no reason to delay planning, as there is never any cost or obligation to get your questions answered by a professional CLTC services specialist.

Fill out the form to the right, download your Free guide, and Start The Conversation Today!

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Don’t Forget About This LTC Gap In Your Retirement Planning!

bridge_the_ltc_gapWhen thinking about retirement, Medicare might come to mind. Depending on your prescription drug needs, it is possible you could hit what is lovingly referred to as the “donut hole” where coverage for your drugs stops until you reach the next coverage point.

For many people this gap in prescription drug coverage can cost several thousand dollars, but insurers have come up with options to provide some coverage in the donut hole.

However, the gap we are referring to is not the Medicare donut hole.

The gap we are referring to could potentially cost hundreds of thousands of dollars, leave your estate drained, and cause hardship among your loved ones when reality finally sets in, and the bills come due.

The shocking truth is that most people in the US have failed to plan for long-term care costs. Considering almost 70% require some form of long-term care in retirement, it is hard to believe it goes unplanned.

There is a simple 2-step fix to this issue though.

Step 1 is to determine if there is a gap and how much it is. This can be done quick and easy by using the US Department of Health and Human Services calculator at the following link:

When you get to this page you will be asked a few simple questions such as your age, your gender, where you plan to retire, the amount you can save each month to pay for future long term care, and the expected rate of return you will get from your investment of that money.

To save you some time, we took the liberty to come up with several calculations and outlined them here:

Female Age 55, Plans to retire in California, Saves $500 per month at 10% return

Your Results

*Cost of care in California (adjusted for inflation): $784,878.00
Your projected savings amount: $649,091.00
The gap between cost of care and your savings plan: -$135,787.00

At Age 50 with same assumptions:

*Cost of care in California (adjusted for inflation): $1,001,725.00
Your projected savings amount: $1,085,661.00
The gap between cost of care and your savings plan: +$83,936.00

Female Age 55, Plans to retire in California, Saves $500 per month at 5% return

Your Results

*Cost of care in California (adjusted for inflation): $784,878.00
Your projected savings amount: $300,681.00
The gap between cost of care and your savings plan: -$484,197.00

At Age 50 with same assumptions:

*Cost of care in California (adjusted for inflation): $1,001,725.00
Your projected savings amount: $418,565.00
The gap between cost of care and your savings plan: -$583,160.00

Male Age 55, Plans to retire in California, Saves $500 per month at 10% return

Your Results

*Cost of care in California (adjusted for inflation): $509,006.00
Your projected savings amount: $649,091.00
The gap between cost of care and your savings plan: +$140,085.00

At Age 50 with same assumptions:

*Cost of care in California (adjusted for inflation): $649,635.00
Your projected savings amount: $1,085,661.00
The gap between cost of care and your savings plan: +$436,026.00

Male Age 55,

Plans to retire in California, Saves $500 per month at 5% return

Your Results

*Cost of care in California (adjusted for inflation): $509,006.00
Your projected savings amount: $300,681.00
The gap between cost of care and your savings plan: -$208,325.00

At Age 50 with same assumptions:

*Cost of care in California (adjusted for inflation)    $649,635.00
Your projected savings amount          $418,565.00
The gap between cost of care and your savings plan  -$231,070.00

Step 2 is also simple. Contact a California Long Term Care Insurance Services Specialist today for a no obligation planning session to help you cover the gap in your retirement plan when it comes to your health.

Fill out the form to the right of this page, download your Free guide and get started now!

*The cost of care was based on an estimate of long-term care spending over remaining life at age 65. The key assumptions are that 69% use some form of LTC (paid & unpaid) with 58% having LTC payments. In 2005 real dollars, for those that use services, the average was $150,000. Women ($166,878) use more than men ($108,180). On average those who use LTC, the average length of use is 4.35 years with 2.3 years being paid.

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

Life Insurance with Long Term Care riderWhen 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 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!


Long-Term Care Insurance Statistics That Affect Your Planning

long-term care insurance statisticsIn 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.


What Can Kansas Teach California About Long Term Care Insurance?

About California Long-term care insuranceAccording to a recent article by journalist Megan Hart for, she noted that although Kansas has seen long-term care insurance premiums rise as much as 60%, this policy makes sense for those with assets to protect in retirement.

You have probably heard a number of stories about long-term care insurance premiums going up, often double-digit increases. There is a good explanation for this phenomenon.

The fact is, we are living longer, and the smart ones that get the benefit of long-term care insurance protection are keeping their policies longer. Some insurance companies that priced long-term care insurance many years ago based their models on people not living as long, and letting their policies cancel.

This is no longer the case for long-term care insurance protection. Long-term care insurance covers health and medical needs not found in Medicare or disability insurance. The items long-term care covers are nursing home services, assisted living services, in-home care, and/or adult day services.

The confusion over long-term care and Medicare comes from one specific Medicare benefit. According to Hart, “Medicare covers short-term nursing home care only after a beneficiary has been hospitalized.” This benefit is also limited to 100 days of care.

Where long-term care insurance steps in is when the condition is chronic, i.e., stroke, certain types of cancer that require living assistance, dementia, Alzheimer’s, MS, and many other health conditions that can prevent a person from being able to perform certain activities of daily living independently.

These activities of daily living are the ability to dress, bath, eat, and care for yourself without assistance. The most shocking statistic we have read to date is that 70% of people age 65 and older will require some form of long-term care health assistance.

It is possible to qualify for Medicaid (Government Help) to pay for long-term care services in a nursing home, but the typical asset limit to qualify is under $2,000. So, if you are someone that has been able to save a nest egg, and you would like to protect it, long-term care insurance could be the shield that protects your nest from financial destruction.

Getting the conversation started about long-term care insurance is easy and only takes a few minutes. Start now filling out the form to the right of this page and by contacting your licensed California Long Term Care Insurance Services specialist today!