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!