Category Archives: long term care insurance prices 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

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.

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!


What Can Japan Teach California About Long Term Care?

Long-term care JapanIn a recent Forbes article, contributor Chris Farrell, award winning journalist and senior economics contributor to Next Avenue, discussed how Japan’s policies and vision of long term care has shifted over time.

When you think of Japan and their culture you might think about how the younger generations are to care and respect their parents and elders.

However, with the shift in their economy and changing family values, according to Farrell, “Japan’s family-centered approach foundered, due to demographic and economic changes. Daughters and daughters-in-law — the primary caregivers — grew overwhelmed by the task, especially with the trend toward fewer children and more women joining the workforce.”

Farrell continues his discussion on how what we may think about Japanese children caring for their elders showed in a 1994 survey that one in two caregivers treated frail older relatives abusively; one of three also reported feelings of hatred.

The financial and emotional toll endured when taking care of an elder loved one who is no longer able to dress, bath, feed, and/or care for themselves is hard for trained people, let alone, the untrained people with an emotional connection.

Sadly, although we have the best intentions at heart when we talk about willingness to care for mom and dad, or hope that our kids will take care of us in our old age, we should never expect the people we care for to sacrifice their own life for ours; that is truly selfish.

The average American age 55 to 64 has a median retirement savings of $104,000 according to the National Institute on Retirement Security. The 70% of people age 65 and older who will access long term care services during their lives, “can expect to incur costs of $138,000, on average” according to Melissa Favreault of the Urban Institute and Judith Dey of the U.S. Department of Health and Human Services.

Remember, that is an average, some will be substantially more, others will be less.

Do you see the problem?

It is important when considering your future heath care planning needs that you also take in account the emotional and financial needs of the people that you care for to.

It is time to start planning your long-term care health insurance today.

Contact your California Long Term Care Insurance Services agent today.


What Happened to Federal Employee Long-Term Care Insurance?

ferderal employee long-term care insuranceIn a recent Washington Post article on August 4, writer Eric Yoder covered the recent change in federal employee long-term care insurance premiums that took them by surprise.

According to the article, on August 1, with no warning, new enrollees for the FLTCIP program found out rates were going up! It was reported that the OPM, Office of Personnel Management decided to withhold this rate increase so they did not confuse people who obtained insurance prior to the August 1 rate change.

The Federal Long Term Care Insurance Program (FLTCIP) is offered through a contract between the OPM and John Hancock Life & Health Insurance Company. This was an unusual event because these contracts are negotiated and announced months in advance; waiting to the last minute was a surprise to many federal employees who had not yet elected for the voluntary coverage options available.

Like many other people considering long-term care insurance however, it goes to show you that putting off that decision to protect your future health care needs can and will cost you money.

The premium increase affects federal employees, military personnel, retirees, and certain family members. According to the article, the rate increase was determined by both OPM and John Hancock to plan for adequate coverage of claims for future healthcare costs. Considering 70% of people age 65 and older will require some form of long-term care health assistance, it is a smart to make sure the company you choose will have the money to pay when the bills come due.

That is why the specialists at California Long Term Care not only work with John Hancock Life & Health Insurance Company, but many other top quality providers to find you the best coverage at a fair and reasonable price. Working with a specialist in long-term care health planning can save you the headaches and frustration that come with picking the wrong company, or being caught in an unexpected rate modification.

Fill out the form to the right of this page to contact your California Long Term Care insurance specialist today for a free review of your options!


Are You A “Narrow Framer” On California Long-Term Care Insurance decision?

long-term care decision

There are often more than two choices when it comes down to making a decision!

According to a recent article on, two facts were offered. The first fact is, 70% of people will need some form of long-term care in their homes, in a short stay facility, or in a long-term custodial facility, and it will be expensive.

The second fact is simply that most people will not get insurance to help cover the 70% chance you will have expensive medical bills that no one, other than welfare will cover, and only if you meet the incredibly strict financial requirements.

Dr. Olivia Mitchell and Dr. Daniel Gottlieb of the Wharton School of the University of Pennsylvania wanted to know if there was a deeper reason on why people hesitate on long-term care insurance decision when the odds you will need long-term care services are 70%.

In their national study of people over age 50, they discovered a common occurrence that psychologists refer to as “Narrow Framing”.

According to Dr. Karyn Hall of, “Narrow framing means that you are not considering all the alternatives available to you–you are defining your choices too narrowly. Narrow frame thinking would be when you are asking yourself if you should take a certain action or not, or which of two actions would be better. For example, should you move to a new city or not? Should you go for a walk or read a book? Restricting yourself to two choices limits your alternatives. You may not even consider options that would be better.”

Narrow framing as you have read affects your ability to make good decisions. This is not just about buying long-term care insurance, chances are you could have made larger decision in life that had a negative outcome, which in hindsight, had you considered other options, you would have been ok.

Whether you are a “Narrow Framer” or just your regular self, we invite you to learn about your options when it comes to long-term care insurance decision in California. Being able to make well educated decision that examine all the options is your best course of action.

Fill out the form to the right of this page and speak with your California Long Term Care specialist today!




Have You Accepted The Default Long-Term Care plan?

Default Long-term care planIn a recent article on 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.


O’Brien, E., (June 2015) Can you afford $5,000 a year for long-term care insurance? Retrieved 8/9/2015 at

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!


Forman, S.D., (June 2015) “Dog Bites Man”, National Association of Health Underwriters, retrieved 08/02/2015 at