Long-Term Care Insurance in California – A Comprehensive Guide

California residents have several long-term care insurance choices available.

This guide helps you decide which options are best.

This article covers the long-term care insurance options available to California residents.

We explain the different LTC choices for individuals and groups, providing the details needed to help you decide.

Visit the California Department of Insurance website for information on long-term care insurance. Here is the link: CA Department of Insurance LTC Link.

Unfortunately, you will find that this information is outdated. For example, someone last revised the “LTC Insurance Guide” in 2014!

The California Department of Aging has not improved much – They last revised their guide, Taking Care of Tomorrow, in 2018.

Don’t worry, though…we’ll show you all the options.

You have several choices when it comes to LTC:

• Traditional Long-Term Care Insurance Policies
• Hybrid Life Insurance Policies with LTC Benefits
• LTC Riders on Life Insurance Policies
• Group Long-Term Care Insurance
• CalPERS Long Term Care Insurance – SUSPENDED

I learned an important lesson from the results of traditional long-term care insurance policies for many consumers in the past.

I will NEVER personally sell a traditional long-term care insurance policy again!

I’m happy to give you information about this type of coverage, but I’ll NEVER sign another application for traditional LTC.

California’s insurance website shows eight companies allowed to sell long-term care insurance policies as of February 20, 2024.

• Bankers Life & Casualty Company
• Genworth Life Insurance Company
• Knights of Columbus
• Mutual of Omaha Insurance Company
• National Guardian Life Insurance Company
• New York Life Insurance Company
• Northwestern Long-Term Care Insurance Company
• Thrivent Financial

Of the above companies, Genworth stopped selling new policies in 2019! The CEO of Genworth recently announced that CareScout is getting ready to enter the LTC business.

Some other companies that left the market are Genworth, Transamerica, John Hancock, and CNA Long Term Care.

There’s a reason why traditional policies are typically the lowest-priced LTC option…

The policies are not guaranteed, that’s why.

Consider hiring an attorney if you can only afford a traditional long-term care insurance policy. The attorney can help you protect assets from long-term care expenses, which may be a better use of your money in the long run.

The only type of policy we offer is hybrid life insurance with LTC benefits.

The reason is simple – GUARANTEES.

Hybrid life insurance policies are an excellent option for many if you can afford the coverage.

What is a hybrid policy?

A hybrid policy is a universal or whole life insurance policy (sometimes an annuity) that offers:

• Long-term care insurance benefits if you need them.
• A death benefit if you don’t use the LTC.
• A return of premium (ROP) if you change your mind and cancel coverage.

The best policies are fully guaranteed – Once you qualify for underwriting, you will know exactly what is available for death benefits, return of premiums, and long-term care benefits. In addition, your premium is guaranteed for the life of your policy.

Examples of hybrid policies include the MoneyGuard Fixed Advantage, Care Matters II, and Asset Care.

Another option that may benefit you is term life insurance with living benefits.

These policies offer accelerated benefits that may be used for long-term care expenses should you become chronically or terminally ill.

The benefits are not as comprehensive as other types of policies but do offer value for a reasonable price.

Transamerica LB and Corebridge Financial QoL term life policies offer living benefits for long-term care costs.

Your place of employment or an affinity membership group may offer group long-term care (LTC) policies.

With group coverage, an important aspect to look into is the portability of the policy – can you take the coverage with you if you leave your job or membership?

While some group policies are portable to individual coverage, the pricing changes when the policy becomes an individual contract.

Ask your HR team for sample policy quotes to see what coverage and pricing options are available.

California public employees, retirees, spouses, parents, in-laws, adult children, and siblings between 18 and 79 were eligible for long-term care insurance coverage.

Today, if you visit the CalPERS long-term care insurance website, the first message you will see is the following:

“CalPERS has temporarily suspended open enrollment for the Long-Term Care Program due to current uncertainty in the long-term care market. Therefore, until further notice, we are no longer accepting new applications for coverage.”

It’s a great idea to offer LTC to your employees. Unfortunately, public programs have also been subject to 85% premium increases, such as the one implemented by CalPERS.

Long-term care insurance is a great idea, but it’s not for everyone due to the cost of coverage.

Your real estate values alone may make LTC worth consideration for California residents.

Please take a few minutes to submit your request for quotes.

Remember that there is never any pressure or obligation with our service.

You have questions about long-term care insurance in California, and we have the answers.

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