Understanding Long Term Care
Long-Term Care in California
Long-term care expenses are a growing concern for many Americans because they are living longer and retired for many more years.
A predominance of long-term care assistance is done by family members and friends at the person’s home. Taking care of someone’s daily needs is physically, emotionally, and financially taxing for the recipient, caregiver and others around.
What is long-term care?
Long-term care is a range of services and support a person may need to meet their personal care. Most long-term care is not medical care but rather assistance with basic personal tasks of everyday life called Activities of Daily Living (ADLs)
What are the probabilities I will need long term care help?
Before age 65, 4 of every 10 Americans (40%) will need long-term care help.
After age 65, the probability rises to 7 of every 10 Americans (70%) will require a form of long-term care assistance.
Is long-term care a person or facility?
Long term-care can include both people and facilities and includes three main forms of assistance.
1. A Home Health Aide provides assistance with the client’s activities of daily living (ADLs) and other home tasks such as cooking or housekeeping.
2. A Residential Care Facility is a small home or large facility in which a client will live, eat, and participate in social activities. Aides are always nearby to help clients with activities of daily living (ADLs).
3. A Nursing Care Facility is where a client will live, eat, and engage in social activities. In this facility, aides and medical staff are always present to help clients with the activities of daily living (ADLs) and ongoing medical needs.
How much does long term care costs in the San Francisco Bay Area?
Do the costs for long term care go up every year?
Depending on the area you live in, the cost of care will rise about 3-5% per year.
What are the choices to pay for long term care in California?
In California, five out of six solutions are dependent on the individual and family.
There is only one public choice which is for impoverished California residents.
1. Ask family and friends for help or financial assistance.
2. Pay all costs with your own savings and assets, commonly known as self-insuring.
3. Depend on the Medi-Cal system. This is California’s health insurance for low income individuals.
4. Traditional Long-term care insurance.
5. Life insurance with living benefits.
6. Asset based life insurance with long term care solutions.
Let’s explore each solution:
Asking family and friends for help to take care of you.
2. Self-Insure, using your own assets to pay for long term care costs.
3. Medi-Cal, which is California’s health coverage for low income individuals.
See the requirement guidelines:
4. Traditional Long-Term Care Insurance.
5. Life insurance with living benefits advances the death benefit early to pay for long term care costs. One of the better carriers with flexible living benefits is American General (AIG)'s Quality of Life.
6. Asset based life insurance with long term care solutions uses the death benefit to pay for long term care costs. After the full death benefit amount has been exhausted, the long-term care extension rider will continue to pay for lifetime unlimited long term care expenses. A quality carrier with reasonable premiums, many funding options, and lifetime coverage: One America’s Asset Care