California long term care insurance costs best obtained by calling AALTCI at (818) 597-3227

Los Angeles; August 16, 2013 – When it comes to long term care insurance costs a new analysis finds a 55-year old couple would currently pay $531 monthly for $438,000 of coverage under a California Partnership long term care insurance policy.   An alternative good plan of coverage with the same immediate benefit would cost the couple about $205 monthly.

“The California Partnership for Long Term Care Insurance was a great concept when it started in the early 1990s but it has failed to change and today very few consumers can or will pay the cost for a Partnership-approved policy,” explains Jesse Slome, executive director of the national long term care insurance industry trade group.  The Los Angeles-based Association examined policy costs for a typical 55-year old couple in standard health.  “Because the Partnership requires individuals purchase policies where future benefit amounts grow at five percent yearly, their cost is as much as 159 percent more than other good insurance available, often from the very same insurance company.”

According to the AALTCI report, a husband and wife who are both age 55 would each pay roughly $100-per-month to each purchase a pool of $220,000 of benefit dollars.  “Most Californians don’t need insurance to pay 100 percent of the costs involved in long term care and $220,000 can buy an awful lot of care even if costs increase in future years,” Slome adds.  “Of course, if you can afford a policy where the benefits will increase each year, that’s well worth considering.”

A California Partnership long term care insurance policy would cost $531 for a couple age 55.   “Their benefit pool will grow and each person will have over $500,000 of benefits when they turn age 75 and over $900,000 for each when they turn age 85,” Slome notes.  “If you want that much coverage and can afford the premiums, this is certainly the Cadillac of coverage but for those seeking good coverage at an affordable cost, the California Partnership plans are no longer a viable option.”

The national long term care insurance expert advises consumers to ask their insurance professional for a ‘Good – Better – Best’ long term care insurance cost analysis.  “Good coverage is a basic amount of coverage that may supplement costs you’ll pay from savings and retirement income including Social Security,” Slome explains.  “Better coverage includes the Guaranteed Purchase Option which allows policyholders to increase benefit amounts in future years and the Best coverage includes the built-in inflation growth option.”

The Association makes available free long term care insurance guides on the organization’s website.  No sign-in information is required to access the guides.  To learn more or to be connected with a designated California long term care insurance specialist call the organization at 818-597-3227 or visit their website.

The California Partnership for Long-Term Care (Partnership) is dedicated to educating Californians on the need to plan ahead for their future long-term care and to consider private insurance as a vehicle to fund that care. The California Partnership for Long-Term Care is an innovative program of the State of California, Department of Health Care Services in cooperation with a select number of private insurance companies.

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“I detest that virtually every article you read cites average costs of $2,000 or more a year for long term care insurance,” explains Jesse Slome, director of the American Association for Long-Term Care Insurance.   ”Many couples then assume they’ll be paying $4,000 to $5,000 yearly and thus make the decision that protection is too costly.”

Averages are meaningless to real people and a new report shared by the long term care insurance expert validates that.   “The average actually paid by New Yorkers between the ages of 50 and 54 was $2,850 in 2012 but some paid as little as $1,384 and some paid as much as $11,667 a year,” Slome notes.  “Paying $100 a month sounds a whole lot better than $200 or more a month.”

Slome explained that the cost for long term care insurance is based on many factors including your age and health when you apply as well as how much coverage you decide to purchase.  “The cost also depends on which insurance company you select,” Slome added.

Average amounts are a simple way for news articles to convey information without having to really explain what is not a simple subject.  “We advocate a Good, Better, Best approach to comparing long term care insurance where someone in their 50s can obtain good protection starting for about $100 a month,” Slome explains.  “If you can afford or want more protection, then certainly that’s possible but ‘too costly’ is the number one reason people avoid even looking into long term care insurance.”

In New York long term care insurance coverage purchased in 2012 by individuals between the ages of 60 and 64 ranged from $1,863-per-year to $10,002-per-year according to State-published data.  “We stress the importance of looking into this protection prior to age 65 simply because of the need to health qualify,” Slome recommended.  “Costs also rise if you wait until your 60s.”

For New York long term care insurance costs or to connect with a designated specialist, a member of the American Association for Long-Term Care Insurance, visit the organization’s website or call 818-597-3227.

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“People have no idea what long term care insurance costs or that policy costs can vary widely from one insurer to the next,” says Jesse Slome, executive director of the Los Angeles-based American Association for Long-Term Care Insurance.  The national trade group researched policy costs for a range of options.

“A plan of coverage that provides roughly $164,000 is what we term a good base plan of coverage,” Slome explains.  “For many people it will be sufficient to pay for care especially when they augment the insurance benefit payments with some of their own dollars, just as we do when we co-pay for some of our health care costs today.”

For a 55-year-old California healthy individual a base plan of long term care insurance would cost $1,200 a year the Association reports.  The organization factored in the good health discount available from most insurers and included benefits that would pay for either care in one’s own home or in a skilled nursing facility.

The organization’s study revealed that for a nominal additional cost, an option allowing the policyholder to increase benefits at future dates without having to meet health qualifications could be a smart move.  “The Future Purchase Option allows an individual to lock in their health so that they can add to their coverage even if their health has changed in future years,” Slome notes.  The typical 55-year-old in California would pay roughly $145 a year additionally for this option.

Long term care insurance policies also offer options that enable the purchaser to see their benefits increase annually.  “Inflation options can help policy benefits increase over time to keep pace with rising costs,” Slome explains.  According to the Association’s study, the cost for a base policy starting at $164,000 and growing at five percent compounded annually would cost $3,700-per-year.

“Individuals today have a wide range of options and it is really important to work with a knowledgeable specialist who doesn’t just pull a solution off the shelf but helps you tailor your plan and costs to your real risk and budget,” Slome concludes.  “In addition, our studies have found that rates for virtually identical coverage can cost up to 40-to-60 percent more depending on which insurer the agent recommends.  It really pays to compare.”

Established in 1998 as a non-profit trade group, the American Association for Long Term Care Insurance advocates for the importance of planning for long term care and supports insurance and financial professionals who market LTC insurance.  To learn more about long term care insurance costs call the organization’s offices at (818) 597-3227 or visit the Association’s website.

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“The larger states with their larger populations were expected to have the most long term care insurance policyholders,” explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance.   Texas has over 452,000 residents with this coverage with New York reporting just over 411,000.

Massachusetts reported the largest percentage increase in the number of year-to-year owners for the top 15 states.  “Our study found an almost 21 percent increase in the number of residents with long term care insurance,” Slome adds.

A few states included in the Association’s report showed an overall year-to-year decline in the number of people with this insurance coverage.  “While you have new people buying coverage, you also have people lapsing their policies and a percentage die every year as well,” Slome points out.  According to the long term care insurance expert some eight million Americans currently own long term care insurance purchased on an individual basis or though their employer’s benefit offerings.

“Residents in every state have been hearing repeated news stories about how State and also Federal programs are being cut back,” Slome says.  “People understand that if they want choice and options for how and where they will receive care, they need to plan and not depend on whatever government programs may exist in the years to come.  More have been turning to long term care insurance as a way to deal with the costly risk of living a long life.”

The Association has several thousand long term care insurance professionals who are members and available to provide free no-obligation information on the topic.  To connect with one call the organization’s national headquarters  at (818) 597-3227.  For free guides on reducing long term care insurance costs visit the Association’s website.

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According to Jesse Slome, executive director of AALTCI, the Partnership programs provide some very unique asset protection benefits designed to encourage more middle income individuals to undertake long term care planning.

Connecticut was one of the four original states to offer the special Long Term Care Partnership program, Slome explains.  New York, California and Indiana were the other three original states launched in the early 1990s.

“The Partnership program was originally made possible by grants from the Robert Woods Johnson Foundation with the specific goal of making affordable long term care insurance protection available and attractive to as many individuals as possible,” Slome adds.

Connecticut residents are eligible for the program that can only be offered by approved insurers and licensed professionals who take part in special training.  The Association will be working closely with designated professionals to help consumers seeking information as well as cost proposals for this important protection.

The web address for the new website is http://www.connecticutpartnershiponly.com and provides the latest information on the program.   AALTCI recently posted a website for New York residents interested in partnership information.

Established in 1998, the American Association for Long Term Care Insurance is the national organization created to educate consumers about the importance of long term care planning and to support insurance professionals who market these products.

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According to the American Association for Long Term Care Insurance, the national trade organization, tax deductibility gives individuals and business owners one very important reason to consider ways to address future long term care needs.

“Americans are living well into their 80s, 90s and even longer when the likelihood of needing extremely costly long term care services is almost a guarantee,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group charged with creating awareness for long term care related issues.  “The  federal and state governments recognizes this and offers the tax incentives to encourage more people to plan.”

Individuals may be able to deduct long term care insurance premiums paid from their 2011 federal income taxes.  The federal levels are based on your age, Slome notes, ranging from $340 to $4,240 per-person and increase for new policies purchased in 2012.    Individuals face certain limitations that are not imposed on self-employed or corporations.  “These entities may able to make the full cost tax deductible,” Slome adds.

In addition to federal tax deductibility limits, a growing number of states now offer either tax deductions or tax credits to encourage state residents to purchase long-term care insurance.

The American Association for Long-Term Care Insurance has just published a state-by-state listing of available tax deductions on the organization’s website at www.aaltci.org/tax.

To learn more about long-term care planning and get long-term care insurance costs from a designated expert visit the American Association for Long Term Care Insurance’s Consumer Information Center.

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