California Long-Term Care Insurance

(Planning ahead for your golden years in the Golden State)

Long term care insurance in my state

By 2020, California’s fastest-growing age group is projected to be senior citizens age 65 and older. With the state’s population graying at a rapid rate, affordable long-term care is becoming more of a hot topic than ever. 

Though things like nursing homes and assisted living facilities may be the furthest from your mind at this stage of life, it’s never too early to start setting up a “just in case” fund to prepare for the future.

Long-term care is expensive, so many folks plan for it far in advance. For those wishing to take charge of the financial aspect of their future, fortunately there’s plenty of long-term care insurance options in California. 

Independent insurance agents are absolute experts in long-term care insurance and can help you find exactly what you need. But first, a briefing on long-term care insurance.

What Is Long-Term Care Insurance?

Basically a different angle of life insurance, long-term care insurance is a type of policy designed to help you prepare for the financial side of assisted living services and other medical fees when you get older. 

Of course, you might not end up needing this coverage if you remain in good health as you age, so unless you’re already in poor health, it’s more of a “just in case” method of preparation. Setting money aside while you’re young and healthy can make a huge difference.

No one wants to think about the possibility of their health declining in the future or one day needing extra medical care, but if it does happen, having a financial cushion in place can at least help to soften the blow. 

Having to pay out of pocket for increased medical costs after retirement can be extremely stressful, especially if you haven’t planned for it in advance. Long-term care insurance aims to help make this phase of life easier for the elderly.

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How Does California’s Long-Term Care Insurance Work?

It all starts with paying a regular premium. Long-term care insurance is often purchased by adults in their 40s who have watched their parents go through assisted living or paying other excessive medical fees. 

They, in turn, become inspired to start setting money aside for themselves to use later in life. Once you purchase a policy, you’ll pay a monthly premium for a long period of time towards an eventual benefit payout if and when you need it.

Benefits kick in once you’re in need of long-term care. In other words, you’ll get your policy’s payout when you actually go into a nursing home or assisted living facility, or are diagnosed with an ailment that requires another form of long-term care such as continuous treatments and doctors’ visits. 

Depending on your specific policy, you may receive a certain amount of your benefits daily, weekly, or monthly.

Long-term care insurance is very similar to a life insurance policy, with the difference being that you’re the one who gets the benefit payout — to use while you’re still alive. 

Working with an experienced independent insurance agent is the best way to find a policy that’s set up in a way that benefits you as much as possible.

What Does California’s Long-Term Care Insurance Cover?

It covers pretty much all forms of long-term care that may be necessary in old age or following a particularly harsh health diagnosis. Long-term care insurance is set up to help in the event that you outlive the money you’ve saved up or find that maintaining your self-care becomes more expensive in your advanced years. 

You can use your benefit payout to help with all kinds of medical costs, so here’s a breakdown of a handful of the most common services and fees to apply coverage to.

Long-term care insurance benefits can help provide coverage for costs associated with the following:

  • Nursing homes
  • Assisted living facilities
  • Extended hospital stays
  • Recurring doctors’ visits
  • Multiple surgeries
  • Testing and diagnosis processes
  • Prescription medications
  • Physical therapy or other rehabilitation following surgery
  • Chemotherapy and radiation treatments
  • Fees associated with treating and recovering from long-term illnesses like stroke, dementia or Alzheimer’s disease

It’s often said that life gets more expensive as you age. Unfortunately this is often the case, especially if increased medical care is required. Luckily, those who plan ahead by purchasing a long-term care insurance policy can seriously help themselves with potential extra costs in their golden years.

Why Would I Need California Long-Term Care Insurance?

You would need it mainly to help pay for long-term medical costs once you’ve retired, because Medicare won’t pay for everything. But really there are many reasons that might inspire you to look into long-term care insurance. Here are just a handful.

You might want to get a long-term care policy for one or more of the following reasons:

  • You don’t want to put a financial burden on your kids when you’re older by asking for their help with your medical payments.
  • You won’t have enough money set aside in savings after retirement to cover your living expenses and increased medical costs.
  • You’ll be financially strained post-retirement, but not so much so that you’ll qualify for Medicaid.

In addition, the costs of nursing homes, assisted living facilities, and other long-term treatments can be staggering.

Here are just a few examples of average expenses for California seniors requiring long-term care:

  • The national median cost of assisted living is $4,000/month, or $48,000/year.
  • On average, a private room in a nursing home costs about $8,365/month, or $100,380/year.
  • Home health aides typically charge $20.50/hour for their services. Seniors often spend $50,668/year on home health aides.
  • The average daily cost of adult day health care centers is $68.
  • The average cost of cancer treatment is around $150,000 in total.
  • Additional treatment for Alzheimer’s disease can increase assisted living center costs by as much as $1,000/month.

Though more than half of surveyed American adults plan to rely on Medicare for their medical costs if necessary, sadly Medicare typically doesn’t cover assisted living expenses. 

It’s important to keep this in mind when deciding whether or not to invest in a long-term care insurance policy, as well as the high costs of other long-term medical treatments and services.

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What Factors Influence the Cost of California Long-Term Care Insurance?

Well, there are a lot of factors that can influence the cost of LTC , and they’ll depend on your specific health insurance company. But in general, you’ll likely be asked several lifestyle questions, personal profile questions, and whatever other information your insurance company feels is important for calculating your insurance benefits and premium. 

Here’s a quick look at a few of the most common.

Your insurance company may base your premium rates on the following factors:

  • Age
  • Race
  • Gender
  • Weight
  • Lifestyle habits (smoker vs. non-smoker, etc.)
  • Health history
  • Location of residence

As with other forms of life insurance and even health insurance, premiums tend to be on the pricier side for folks who are generally considered to be less healthy and lead riskier lifestyles. Although it depends on many things, in general, the younger and more fit and careful you are, the lower your premium is likely to be.

How Much Does Long-Term Care Insurance Cost in California?

Several factors influence the cost of long-term health insurance, including where you live. The cost of treatment and service rates in your area also influences insurance premiums. Here’s a quick look at a handful of average long-term care costs in California.

Average costs of long-term care in California:

  • Home health aide daily rates: $150
  • Nursing home care daily rates: $250 for a semi-private room, $307 for a private room
  • Assisted living facility monthly rates: $4,000 for a private room

California Long Term Care Costs - 2018 Annual

Region Nursing Home 
(private room)
Nursing Home 
Assisted Living
(private room)
Home Health
Aide (44 Hrs/wk)
State Median
$117,804 $100,375 $54,000 $59,488
Bakersfield $110,460 $90,155 $37,800 $52,624
Chico $111,143 $101,470 $48,000 $53,196
El Centro n/a n/a $43,800 $57,200
Fresno $116,800 $103,660 $42,000 $55,209
Hanford Area $103,722 $100,072 $42,768 $n/a
Los Angeles Area $109,500 $91,250 $54,000 $57,200
Madera $93,805 $88,330 $39,870 $57,200
Merced $103,478 $94,535 $42,000 $58,298
Modesto $105,485 $106,580 $38,400 $54,912
Napa $146,548 $119,538 $65,100 $60,632
Oxnard $116,435 $98,550 $54,900 $61,433
Redding $131,400 $104,938 $46,800 $58,344
Riverside Area $104,025 $90,703 $42,000 $54,912
Sacramento Area $129,758 $102,200 $53,670 $59,488
Salinas $144,175 $109,500 $66,000 $64,064
San Diego Area $127,750 $102,200 $54,000 $57,589
San Francisco Area $139,795 $109,777 $66,000 $67,496
San Jose Area $141,803 $109,500 $66,000 $72,072
San Luis Obispo Area $100,375 $91,250 $65,400 $61,776
Santa Cruz Area $100,740 $96,908 $67,140 $69,784
Santa Maria Area $160,783 $127,750 $57,900 $65,208
Santa Rosa $130,185 $111,095 $66,000 $69,784
Stockton Area $118,906 $98,072 $42,000 $59,488
Vallejo Area $106,580 $98,003 $52,200 $54,912
Visalia Area $91,250 $78,475 $44,100 $53,768
Yuba City $149,650 $89,425 $44,148 $61,776
Rest of State $119,720 $97,820 $49,650 $59,488


As far as the cost of long-term care insurance, that depends on several factors. The national average for singles aged 55 is $2,007/year, while married 55-year-olds pay an annual combined average of $2,466. Here’s a quick breakdown of some average long-term insurance rates for California’s capital, Sacramento.

Average costs of long-term care insurance for Sacramento, California:

Sacramento, California 

Single male, age 40:

$68/month for a benefit amount of $2,500 $95/month for a benefit amount of $3,500 $122/month for a benefit amount of $4,500
Single female, age 40:

$105/month for a benefit amount of $2,500 $147/month for a benefit amount of $3,500 $189/month for a benefit amount of $4,500
Single male, age 55:

$90/month for a benefit amount of $2,500 $126/month for a benefit amount of $3,500 $162/month for a benefit amount of $4,500
Single female, age 55:

$146/month for a benefit amount of $2,500 $204/month for a benefit amount of $3,500 $262/month for a benefit amount of $4,500
Single male, age 70:

$171/month for a benefit amount of $2,500 $239/month for a benefit amount of $3,500 $307/month for a benefit amount of $4,500
Single female, age 70:

$265/month for a benefit amount of $2,500 $371/month for a benefit amount of $3,500 $477/month for a benefit amount of $4,500

Clearly the cost of monthly premiums increases significantly with age, which is a big reason many long-term care policyholders first purchase coverage in their 40s to lock themselves into a much lower premium. 

Married individuals also get a price break of up to $100 on monthly premiums, and possibly even more than that if their partner is already a policyholder or looking into their own policy.

What Are the Best Long-Term Care Insurance Partnership Options and Insurance Companies in California?

So now that you’ve learned all about what long-term care insurance is, who needs it, and what it costs, you might be wondering where to get it. California was one of four original states to begin a  long-term care partnership in 1994. 

The California Partnership for Long-Term Care program aids long-term care policyholders if their insurance benefits don’t fully cover their medical costs. Through this program policyholders are able to protect their assets and still qualify for Medicaid. 

As far as the top companies to purchase your long-term care insurance, fortunately for Californians there are several to choose from in your state.

Here are several of the top long-term care insurance companies in California:

  • Bankers Life & Casualty
  • Genworth Financial
  • LifeSecure
  • MassMutual Financial Group
  • Mutual of Omaha
  • New York Life
  • Northwestern Mutual
  • Thrivent Financial
  • Transamerica

An independent insurance agent can help you get set up with the best insurance company for your unique needs. An experienced agent can also help you determine if you might benefit from joining the California Partnership for Long-Term Care program. 

Be prepared with a list of your questions and concerns about long-term insurance policies before you connect with an agent to help the process run as smoothly as possible.

How to Find the Best Long-Term Care Insurance in California

In order to get the protection you need and deserve, you’ll want to work with a trusted expert. Independent insurance agents will not only know where to find the best coverage and price, but also help to make sense of the fine print.

Consider your unique needs, then connect with an agent to help you take it from there. Have a list of your specific concerns and desires ready before reaching out to help the process run even more smoothly.

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Why Independent Insurance Agents?

Insurance policies can be complex, and searching through options can be confusing, time-consuming, and frustrating. An independent insurance agent’s role is to simplify the process. 

They’ll make sure you get the right coverage that meets your unique needs. Not only that, they’ll break down all the jargon and explain the nitty-gritty so you understand exactly what you’re getting.

And when it comes time to file a claim, you’re not alone. Your agent will be right there to help guide you through every last step and get your life back to where it was. How great is that?

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