The problem is how to manage an event that is increasingly likely to occur as we age. Because we are likely to live a long life, we are likely to get old. If we get old, we are likely to become sick or injured. If this happens, we are likely to need care. Who will pay for that care? Who will provide it? How can the potentially severe consequences of needing care be minimized for one’s family and one’s financial plan? The costs of care are huge and growing. Long term care insurance costs pennies on the dollar and protects against a devastating loss of assets should extended care be needed.

The average cost of a nursing home in California is now roughly $109,500 per year, or $300 per day, and is rising yearly at a pace above the rate of inflation. Medicare only covers long-term care for a matter of weeks, if at all, and is now under severe financial pressure. Medicare supplements and other private insurance policies also give minimal benefits. Medi-Cal only covers cost as a welfare supplement for the poor.