What You Should Know about Long Term Care Insurance?

Marcia Israel and Stan Israel |

Marcia Israel and Stan Israel

Mar 23, 2025

senior-care-long-term-care-insurance
senior-care-long-term-care-insurance

How we Avoid Thinking about Aging

Nobody likes to think about themselves aging. We might think about retirement, about hanging out with grandkids, but certainly not about struggling with our daily tasks. Even when we spend the time with the elderly family members, the sheer thought of the challenges that come with age is typically swept under the rug. "This won't ever happen to me", "I've got plenty of time", "Healthcare will be so much better in 10 years", "I don't need to think about this yet".

The Dramatic Shift

But the world around us is changing. People live nearly 10 years longer today compared to the 1960s. Meanwhile, the social and economic environment has evolved as well. The percentage of households where both parents are working is up 1.5 times from 31% in 1970 to 46% in 2015 according to Pew Research Center.

To summarize we have the following:

  • People live much longer than before

  • There are less adults that are staying home, not working

Which means that many senior adults face a very difficult situation when they can no longer support themselves at home. Either hire caregiver who will support them at home or move into an assisted living facility.

The Cost of Ignorance

The costs for both options are huge. Caregiver support can be the most affordable at the beginning, but as the needs of the seniors increase, they need longer shifts which translates into higher costs. Caregivers that live with their clients are rarely available for less than ≈$15K a month. Assisted Living Facilities vary by cost as well but in Los Angeles good quality facilities are rarely available for less than $6-7K a month, more convenient accommodation and memory care services can easily push this price beyond $14-16K a month depending on the facility.

Now the hard part: Medi-Cal and Medicare nearly never cover the cost of assisted living or home care services. Which basically means that unless you have Long Term Care Insurance these costs come out of pocket. To put it bluntly, staying in assisted living for 4-6 years with the highest level of care can eat as much as 1 million dollars. Considering that the facilities aren't subject to rent control these costs keep growing fast.

The Only Solution

It is imperative that those in their 40’s, 50’s, and 60’s fund their long-term care needs now. Long Term Care Insurance is, however, attainable up thru about 78 years of age. Though many, many baby boomers currently handle the health care needs of their aging parents, if you are within this age group, it becomes paramount that you plan for your own family and for your own long and extended life expectancy. This requires careful forethought and planning. Engaging in conversations with family, financial advisors, estate and trust attorney are the first step towards developing a Long-Term Care Plan.

Even though you may be the “Sandwich Generation,” providing for both your parents and children, in reality, you will need to consider for yourself: where you wish to live, when to access care, how to pay for home care, assisted living, or board and care; what role will family members play, and preparing documents which are accessible for those who will help you when the time comes. This is in addition for planning for retirement and setting financial goals.

The Summary

  • The #1 one threat to senior’s retirement savings is the lack of planning for Long Term Care

  • LTC Insurance is the least expensive way to fund services — through hybrid or traditional plans

  • Long Term Care is a vital component of a retirement plan

  • One must “health-qualify” for coverage, PRIOR to the need for care — Age Matters

  • Underwriting has gotten tougher

  • Couples discounts are available

  • LTCI preserves quality of life, independence, and offers peace of mind

  • Premiums may be tax deductible

  • Medicare & Health Insurance coverage is limited, Medi-Cal being only available to those with limited assets/income

  • Long Term Care Insurance includes choice of how and where care is received

  • 80% of people first receive care in their own home. It’s not just “Nursing Home” coverage

  • Long term care insurance is not a one plan fits all. Hybrid/Linked Benefit plans are life insurance policies which can be used for LTC services with dual benefits. Traditional plans may be more budget friendly.

Watch an Introductory Video on LTC from one of major insurance carriers, Mutual of Omaha.

How Stan and Marcia who Wrote this Article Can Help You

  • A consultation (small stipend) for people who have long term care insurance policies so they understand what their coverage is which they purchased in the past. Many agents have, regrettably left the insurance field.

  • Consulting on how to access care with the long term care insurance carriers, helping people make the initial claim for reimbursement. This will help clients begin the process of making a claim. 

  • Purchasing an LTC insurance policy that is tailored to your needs and budgets.

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