Most Californians age 40 and older don’t have long term care insurance.
According to an article in the Los Angeles Times, many of these people are going to need it – but they don’t know that. Many think that Medicare will cover their long term care needs.
Long term care insurance typically covers extended care provided at home, in an assisted living facility or in a nursing home. Services usually include help with things such as bathing, dressing, driving and managing medications.
Only about one-third of Californians know that Medicare does not cover long term custodial care, the story says. Most polled said they could not afford the cost on their own for more than three months. The average cost of a semi-private room in a nursing facility in California is $82,000 a year. Home health care services run about $50,000 a year.
Medicaid, the government insurance program for the poor, does pay for nursing home care, but to be covered you have to spend down nearly all of your assets.
If you are considering long term care insurance, you should remember that it is cheaper to buy a policy the younger and healthier you are. If you are too old or too ill, you probably will be turned down.
If you can’t afford the best policy, you can still benefit from a policy that covers a portion of the fees charged by a home or home health agency, the story says.
Policies range in price. A healthy 55-year-old can get a bare bones plan for about $1,000 a year or a more comprehensive plan for about $2,000 a year.
The article also recommends buying a policy from a reputable agent or company.
If you have questions about estate planning or elder care issues, feel free to contact us at (626) 696-3145.
