There are variations between the policy language and benefits between the many companies that offer Long-Term Care Insurance; however, the primary features and benefit choices are comparable from company to company. Premiums and underwriting criteria vary dramatically between insurance companies.
When comparing long-term care insurance, you should recognize the differences between CalPERS and long-term care products offered by insurance companies.
CalPERS is NOT an insurance company, nor is it regulated by any state's department of insurance. The California Public Employees' Retirement System is a California state agency whose job is to manage the pension and health benefits for California public employees, retirees, and their families.
The CalPERS Long-Term Care Program is a voluntary benefit that can be purchased by eligible state employees and family members. The agency is not-for-profit and completely funded by participant premiums and investment returns. The State of California does not contribute to any portion of the premium.
The CalPERS Long-Term Care Program is offered by and subject to the control of the CalPERS Board of Administration.
The program has had financial issues and has implemented numerous rate increases on policyholders. There is NO guarantee or other financial commitment on the part of the State of California for the CalPERS long-term care program in the event they were unable to meet its obligations.
CalPERS Key Features and Benefits
- Daily benefit from $150 to $400 (monthly benefit for home care)
- Benefit periods of 1, 2, 3,6 and 10 years creating a pool of money
- Elimination Periods from 30 to 90 days
- Inflation options include 3% and 5% compounded
- Restoration of benefits option
- Care advisory services
- Spousal discounts
- Stay at home benefit includes home modifications and other services
- Limited international benefit
- Optional return of premium and survivorship benefits
- Optional plan to qualify under California Partnership Program
Partnership policies provide additional dollar-for-dollar asset protection. You can learn more about the federal/state partnership program by finding your state on the LTC NEWS MAP.
Find the current and future cost of long-term care services where you live, along with the availability of partnership plans and tax incentives by clicking here.
Remember, no insurance agent or financial advisor can give a consumer a special discount which is not available otherwise.
There are more similarities than differences when it comes to features and benefits. However, options and benefits do vary from company to company. Premiums can vary between companies by over 100% when comparing equal benefits.
Every company has its own underwriting rules which determine insurability and rate class. An experienced Long-Term Care Insurance specialist will understand these underwriting rules when helping you select the best company and policy options.
Be sure to seek the assistance of a qualified Long-Term Care Specialist to compare the features, benefits, and costs of each policy. You can find a trusted and qualified specialist representing the major insurance companies that offer these products by clicking here.
Since your health is a primary consideration in determining your eligibility for coverage, it is always best to start planning before retirement when health is usually better. An experienced Long-Term Care Specialist will ask you several questions about your health to provide you with accurate quotes and professional recommendations.
Please note: Since every company has different underwriting rules, you could be eligible for coverage with one company and not another.
Because Long-Term Care Insurance is custom-designed, you can design the plan to fit your specific needs, concerns, and budget. A specialist will help you develop your plan to address your concerns. Generally, you can design a plan to meet some or all of these common goals:
- Safeguard income and savings
- Protect the lifestyle of your spouse/partner
- Provide options for quality care
- Reduce the stress and burdens otherwise placed on family members
- Give your adult children time to be family
- Provide a legacy for loved ones
State variations may apply.