Long Term Care Insurance California

Long Term Care Insurance California

Why Long Term Care Insurance California

Long Term Care insurance California is an important part of retirement planning and should be planned for. This is not to say that Long Term Care Insurance is right for everyone, but it is something that should be considered.

What is Long term Care? It is the care that is needed when a person is unable to perform "activities of daily living" (ADLs) on their own. This would also cover situations when a person has cognitive impairments that would prevent them from being able to take care of themselves, or to do so in a safe manner. See definition of Long Term Care!

If you do need Long Term Care, having a Long Term Care policy can help to protect what is most important to you: yourself, your family and friends! You never know when you might have the need for Long Term Care. You do not want to liquidate assets in a down economy, any more than you would want to be liquidating property in a down real estate market. Having a Long Term Care policy can give you protection and may help provide the following:

  • Peace of mind, knowing that if something happens, your "Nest Egg" will not need to be liquidated
  • Freedom to receive care where you want
  • Freedom to receive care from whom you want
  • If needed, your loved ones can supervise your care, not have to perform it

Long Term Care Insurance, when appropriate and affordable, can help to pay for some or all of the costs of Long Term Care. How much of the costs are covered depends on how the policy is designed. The design of the policy can make it more affordable: you can raise or lower benefits to suit your needs.

Where are Long Term Care Services provided and what are some Long Term Care Services?
Click here to find out!

Four of the key reasons my wife and I plan on getting policies in our 40s or 50s are:

  • We want to be able to qualify for the policies and hopefully obtain the best rates, since we will have to apply and be accepted by the insurance company.
  • The sooner we buy it, the less expensive it will be. Our health will not likely be getting better as we age.
  • We do not want our children to give up their lives to become our caregivers.
  • If something happens to one of us, we do not want the other to have to spend down our assets or health, to care for the other. We would both prefer to supervise care, not perform it.

I believe these are some of the main reasons that my parents have their own Long Term Care insurance policies.

There are many misconceptions on who pays for Long Term Care, so I will start with who does not pay for Long Term Care needs.

  1. Health Insurance does not typically pay for Long Term Care. Health Insurance pays for care that will help you recover from injury or illness. When you need Long Term Care, you will not typically recover, and you will continue to need care for an extended period of time.
  2. Medicare does not pay for Long Term Care. Medicare pays for part of the first 100 days in a Skilled Nursing facility in many situations, as long as you are showing improvement, and you must be in the hospital for 3 days before being admitted. Medicare will not cover care for a cognitive impairment.
  3. The VA will not cover most veteran's Long Term Care needs. There may be some options for veterans with limited incomes and assets.
  4. Medicaid was never intended to cover Long Term Care costs for the masses. There is some coverage for people with low incomes and assets, but you will need to qualify. This often means spending down your joint assets and spending most of your income on your own care.

Long Term Care Insurance does pay for Long Term Care. Some people may be able to self insure, but an incisive look at the actual costs in the setting of your choice is something that needs to be reviewed.

There are many issues to think about when considering if a Long Term Care Insurance policy is appropriate and affordable for you. The first step is getting more information. Please feel free to call me to see if this is right for you.

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