Could Picking The Wrong California Long Term Care Insurance Cost You 90%?

As people grow older and retire in California, they begin to consider what life will be like in their golden years, some may still work part time, some will travel, and others may never “retire” but be active. However, many will have health and other challenges to face. In fact, approximately 70% of people 65 and older will face some sort of long-term care need. These are thoughts are often put off for as long as possible, but when you are rushed and planning at the last minute, selecting the wrong company could mean your rates go up 90%, like they did for this Laguna Woods couple.

As people plan for their future needs, a long-term care insurance policy in California can be crucial when protecting an estate, maintaining dignity in care, and meeting the needs of a growing and culturally diverse population base. However, if you are like Mike and Judy Holtzman of Laguna Woods, it is possible that the policy to protect your assets could take the gold out of the golden years.

“We were told when we first bought the policies that the rates could go up,” said Mike Holtzman, 67. “But 90% seems outrageous.” It is unclear if the Holtzmans had hired competent and professional help to guide them through California’s difficult, often broken, long term care insurance system, but we share their sentiment: “This seems unconscionable,” Holtzman said. “We bought these policies because this is the only insurance you really need. Long-term care will eat up all your assets.”

As insurance companies begin to adjust for the growth in senior health care needs, many companies have decided to exit long-term care insurance underwriting because of the great expenses senior care can entail, including dealing with chronic long-term care health issues that require semi-skilled and skilled care staff. Those companies that did not plan accordingly prior to the baby boom are now playing catch up to remain profitable and to be able to honor the contracts they took on in earlier years.

As you age, the costs of long-term care insurance coverage increases due to the likelihood you will be closer to needing the benefits. Hiring a competent and professional California long-term care insurance specialist could also mean the difference between getting a 90% rate hike vs. 1 to 3%.

Fill out the form to the right of this blog and contact your licensed California Long Term Care Specialist today to know your options!

Angela Basset, Rob Lowe, Jim Nantz, Maria Shriver, Zachary Quinto, and Maggie Gyllenhaal recently shared their experiences and thoughts on the issue of “having that conversation” with a loved one regarding long term care planning.

We have helped over 30,000 people with their long-term care coverage needs.

Fill out our short form to the right of this page, download your Free guide and let one of our specialists help you discover all options available to you. This service is absolutely FREE!

According to a February 2015 ABC News story, “Bassett, 56, had to deal with different long-term care situations involving both her mother, Betty Jane, who died last year, and mother-in-law, who was diagnosed with ALS and is now living with her family. “I know the importance of it,” she said of having the discussion with your kids or other loved ones. “It’s absolutely something we are each going to deal with, our parents as well as ourselves, one day.”

Rob Lowe made a point about YOU being the architect of your future, and shared a story about his father who not only one a prestigious golf and tennis championship, but who also received a diagnosis of non-Hodgkin’s lymphoma that very same week.

No one actually knows how they are going to age, if they will get sick, require care, or even if they outlive all of their family. Having the conversation about long-term care can be difficult because you need to admit that at some point like 70% of the 65 and older population, you may need some help. Angela Basset and Rob Lowe also pointed out that neither Medicare, the Affordable Care Act, nor neither do the vast majority of other health care insurance policies cover long-term care medical expenses.

California is also a state with a very scattered long-term care network. There are over a 100 program options with 20 offices that administer those programs. There are currently discussions on reworking the State long-term care systems to cut back on waste, confusion, and being able to meet the needs of a growing culturally diverse population.

Long term care planning includes certain medical needs that most health insurance companies are not equipped to take care of, that is why it is important; as the architect of your future, that you get a solid blueprint in place of what your future is going to look like.

That is why California Long Term Care Insurance Agency is here to help you understand all of your options and find the best possible plan designed to fit your needs now, and in the future.

Fill out our short form to the right of this page, download your Free guide and let one of our specialists help you discover all options available to you. This service is absolutely FREE!

ABC News Source: http://abcnews.go.com/Entertainment/angela-bassett-long-term-care-conversation/story?id=29221506

According to an article on capradio.org, the current long-term care system in California is spread across 20 state departments and agencies representing 112 programs. How would anyone know what agency or program is the right one for them without going through a substantial amount of paperwork, headache, and possibly some bright red tape?

According to the report published by the Senate Select Committee on Aging and Long-Term Care on January 5, 2015, “The challenge before us is two-fold. First, over 5.1 million persons age 65 and over will call California home by 2015. Due to aging Baby Boomers and migration patterns, that number will grow to 8.4 million by 2030 – or nearly one fifth of the population. Second; as the Baby Boom population ages, it will become more ethnically diverse, driving demand for culturally competent service delivery.

Reliance upon our existing patchwork of programs and services to serve our growing aging and disabled population will result in unnecessary expenditures, inequitable access, and irrelevant services. Furthermore, under the existing fragmented structure there is no leader to oversee or coordinate the entire range of services, and no mechanism for accountability or improvement” (Liu, et al, 2015).

We know that the system as it stands needs help. We also know that people coming in to the system without any formal training or knowledge on the complex and often confusing structure of the long-term care system in California will also need help. When your health and well-being is important in your golden years of retirement, it would be foolhardy to not at least get a plan in place, even something as simple as knowing what programs and agencies you could access based on your unique and individual needs.

The California Long Term Care Insurance Agency (CLTC) wants you to know you are not alone. CLTC, is committed to providing you the latest information and developments on the state of long-term care in California. We are currently seeking men and women age 45 and up that want to get answers and know their options when the time comes to access long-term care insurance in California. Fill out the form to the right of this page for a free, confidential, and educational evaluation of your special circumstances right now.

Sources:

Liu, C., Wolk, L., Beall, J. (January 5, 2015) A Shattered System: Reforming Long-Term Care in California – Envisioning and Implementing an IDEAL Long-Term Care System in California. Retrieved online June 8, 2015 at http://sd25.senate.ca.gov/sites/sd25.senate.ca.gov/files/ Aging Long%20TermCareReport.pdf

Adler, B., (January 15, 2015) Senate Report: Overhaul California’s Long-Term Care System Retrieved online June 8, 2015 at http://www.capradio.org/articles/2015/01/15/senate-report-overhaul-californias-long-term-care-system/

Katie O’ Rourke
Managing Partner

Our own Managing Partner, Katie O’ Rourke, was featured as an expert guest on the Essential Boomer. Katie is an honorary boomer and as we all know, a 30 year veteran of the insurance industry and Managing Partner of California Long Term Care insurance Services. In this podcast, Katie shared the benefit of her expertise in long-term care insurance as she provided frank and insightful answers to the following questions:

• What is Long Term Care?
• Where is Long Term Care typically provided?
• What are the odds of me needing long-term care?
• What does long term care cost?
• Wouldn’t a lot of families be able to provide the necessary resources?
• Don’t Medicare and health insurance provide some kind of coverage for long-term care?
• When is the best time to investigate long-term care insurance?
• What is the qualification process for Long Term Care insurance
• If somebody has a pre-existing condition, are they still able to obtain long-term care insurance?
• How do the plans work and what’s the cost?
• What are the different flavors of long-term care insurance?
• What should I look for in a policy?
• Are there any tax breaks with long-term care insurance?
• Can I get a plan at work?

This podcast (http://essentialboomer.guide/katie/ ) might save you or your family a lot of money and heartache!

Listen to this very informative podecast and then contact us with any further questions you may have. We are here for you!

Katie O’ Rourke
Managing Partner

There are two main reason why so many people that are planning for their retirement years tend to ignore the need for purchasing Long Term Care Insurance. One is lack of education and the other is denial of their likely need for care.

Some facts and figures from the insurance industry and the Department of Health and Human Services can help people find out if long term care insurance is worth it and the right time to learn about options:

• 79% of the people purchasing Long Term Care policies are between ages 45-64
• 99% of buyers keep their policy for the rest of their life
• 49% of people receiving long-term care do so in their own homes
• Another 24% get funds for Assisted Living Facilities
• Each year the percent receiving insurance funds for home care services increases
• Only 9% of baby boomers have planned for their Long Term Care needs
• 70% of those over the age of 65 will need long term care in their lifetime
• 71% of the benefits are paid to females
• 67% of unpaid caregivers are female
• 67% of the people who plan to have a loved one provide care have not ask the loved one to take care of them when the need arises
• The number of Americans 65 or older will double over the next 35 years

The most eye opening long-term care statistic we found is the fact that 70% of people age 65 and older will need some form of long-term care services, either in their homes, in an assisted living facility, or in an acute care facility.

So if you are asking is long-term care insurance worth it… you need to consider if you will be part of the 30% who get lucky enough with their health and genetics to not require the $2,000 to $8,000+ per month in medical expenses the other 70% find they will need.

Most people do not realize how many options they actually have available to them when it comes to long-term care insurance planning. That is why when they get the facts, as the statistics prove, 99% of buyers do keep their policies for life.

You can get the facts today with no cost and no obligation and find out if long-term care insurance is worth it to you, your family, and your future.

Contact us directly and let us help you get the facts.

Katie O’ Rourke
Managing Partner

Long Term Care Facts Don’t Lie … Could This One Mistake Cost You Your Retirement Savings?

You’ve worked hard all your life and now it is time to retire. You’ve got your expenses figured out and it looks like you can finally stop working and live off interest, savings, social security, and maybe even a pension. You might even choose to work a fun part time job to stay in the mix and enjoy life a bit.

Then it happens… An unforeseen health event takes place like cancer, stroke, heart disease, or some other debilitating event.

 Luckily, you got insurance to help cover most of the medical bills, but you find out it will not be enough because this event is going to require a long-term care treatment plan that normal insurance or Medicare does not cover.

 And when 70% of those over the age of 65 will need long term care in their lifetime, you wonder why you didn’t take care of this sooner. Sure, you’ve probably heard the concept of long term care insurance, but like most other people you didn’t believe you would need it, or you simply didn’t get the right information about it.

 Did you know that 79% of the people purchasing Long Term Care policies are between ages 45-64, but only 9% of baby boomers have planned for their Long Term Care needs? When someone is unprepared for the time, cost, and emotional commitment required of family to have to take care of you, retirement doesn’t look as fun as you thought.

 And because only 9% of boomers even planned for this, 67% of the people who plan to have a loved one provide care have not asked the loved one to take care of them when the need arises. This is going to create stress among the family no matter what because most long-term care events are not a quick 30-day recovery period, they can last for 5 to 10 years, or longer in some cases. And, when long term care costs can run between $2,000 to $8,000+ per month, this can wipe out most retirement accounts efficiently.

 We know the thought of having to buy another insurance policy does not sound like a fun thing to do. But, you have so many options you may not even be aware of right now. For example, if you are in the 30% of people that enjoy health during retirement, you might be eligible for a return of premium plan where if you do not use it, you get your money back.

 Regardless of return of premium options, the fact is 99% of buyers keep their policy for the rest of their life because they know the peace of mind it provides when the unexpected happens.

 We know you want to have a fulfilling retirement full of joy and love, we also know that you do not want to become a burden or cause any strain on those that care about you most.

 That is why you can get all the facts about long-term care today when you speak to our highly trained staff and learn about what options are available to you now.

 Contact us today and get the facts about long-term care planning for retirement and you.

Katie O’ Rourke
Managing Partner

What if I buy a long term care insurance policy, pay them premiums for 10, 15. 20 years and never use it? Does that mean I lose money? One of the things that makes people hesitate to purchase Long Term Care (LTC) insurance is the possibility that they may never need to use it.  This is really more of a hope since 70% of us will need care during our lives.

This is very valid concern, and many people feel the same way. What most people find though is that when a catastrophic claim happens, they think less about the few dollars they saved switching carriers and more about if they have the best policy that is going to cover their losses and get them even again. Insurance professionals know that the only time their clients are not worried about insurance premiums is when they call in with a claim and need help.

 Have you ever taken an insurance inventory? Think about all the policies you have right now… do you own a car and have car insurance? How about a home with homeowners insurance? Do you have life insurance through work or a private policy on someone you love? Do you carry health insurance, maybe dental and vision coverage?

 If insurance is so expensive and we worry about the “what if” we never use it, then why buy insurance at all? If you look at the entire business of insurance, it is based on losses and insuring against the “what-ifs” that most people prefer to not think about. Insurance companies understand this, and so to make it easier, they have developed policies that protect their clients, and give them relief should they never actually use certain policies.

 Frankly, I hope that planning for long-term care means I will not need it. (I also hope I do not need to use my homeowners, auto and health insurance.)  There are few ways to solve this problem.  One is to get coverage that includes a Return of Premium feature.  If you never need to use the policy then the premiums are returned to your estate or beneficiary. 

 Another option is to move the cash value of an existing Life insurance or Annuity into a policy that includes LTC coverage.  This repositioning of the value can provide coverage at no cost.  A final thought is to purchase a Life insurance or annuity plan with an LTC rider.  Then you get the money no matter what happens between now and then.  There are many ways to plan for the worst and hope for the best. 

 Some of these policies can be complex and confusing, and that is why agents specialize in certain types of insurance, attend on-going education each year to stay on top of laws, policy changes, and regulatory matters. When you want to buy an insurance policy that will not only cover you in the event of a loss, but also give you your money back should you never use it, you ought to speak to a licensed and qualified professional who specializes in this coverage. You wouldn’t go to a brain doctor for heart surgery right?

 That is why we screen all of our agents based on their commitment to the industry, industry training credentials, and areas of expertise. When you speak to one of our agents today about a Return of Premium policy, or Rider based product, you are going to know you have the most qualified person to help answer your unique questions, and provide you with the best options to choose from.

 Go ahead and get in touch with our specialists today, simply enter your details on the right hand side and we look forward to speaking to you shortly to give you the information you need.

When people reach their fifties, they typically begin to consider estate planning. One of the main elements which needs to be taken into account during this planning, is the living will. It is a vital part that gives you and your family peace of mind for whatever circumstances may happen. The living will is not something that will be necessarily easy for yourself or your family, since it confronts you with your own mortality. However, it is essential in order to have your wishes carried out on your behalf and to have your care covered financially. 

What is a Living Will?

If something should happen to you, it is essential that your relatives are informed about your wishes. This is what a living will is for; it displays your wishes regarding prolonging medical treatments. It informs your relatives, but also healthcare workers, if you are no longer capable of conveying your wishes.

A living will is usually supported by two physicians, declaring their support when you are suffering from a terminal illness or permanent vegetative state. It is also a document that can give someone power of attorney when you are no longer capable of making decisions about your current quality of life and medical treatments. This might be a difficult conversation with the person you will be entrusting this to, but again, it is essential to ensure the comfort and peace of mind for your family and loved ones. Even though it is a difficult thing to discuss, you must make sure that someone is aware of your living will. If nobody knows, it will be of no use when something happens to you. Once you write your living will, you need to ensure it is financially covered.

What is Long Term Care Insurance and the benefits?

Long Term Care Insurance will cover medical costs, and even home care, something most medical insurance plans do not cover. When you encounter serious medical costs at a point later in life, it might eat up your entire pension and even your savings. So why not prepare yourself for these types of scenarios? Make sure you are covered, but also make sure your family is protected by choosing a long term care insurance plan.

Role of Long term care insurance in estate planning

We cannot predict what will happen in our lives. We could become gravely ill and encounter serious medical costs. We could even be in need of a live-in health professional. Although these are things we do not like to think about, we want to be prepared if the worst does happen.

The long term care insurance helps to pay for assisted living, nursing facilities or even physiotherapy if you have been injured in a serious accident. It also covers illnesses such as Alzheimer’s. You won’t have to worry about paying for a care worker that will help you or a relative bath, dress and even eat. The long term care insurance plan will be there in your time of need and not take away the hard earned money that you have been saving for years. Including long term insurance in your living will, as a means of covering potential costs for you and your family in the future, is a key piece to the estate planning puzzle.

To speak to a representative or schedule an appointment, simply fill out the form to the right to contact us.