What Are Your Options In California?
California is very unique in its product offerings for hybrid long-term care insurance. Unlike the other 49 states, hybrid long-term care insurance products are tailored differently for California.
This is due in part to the state of California’s insurance regulations. Now we already offer an in-depth explanation of each product (see the links below).
However, this article focuses on the slight differences of how it works in California versus the other 49 states.
In this article we will discuss:
OneAmerica AssetCare – CA
OneAmerica’s Asset Care is popular because it is the only hybrid long-term care insurance policy that offers joint policies.
Also, it is the only hybrid long-term care insurance that can provide a lifetime of coverage.
Like all hybrid products, OneAmerica works by providing benefits in three ways:
- It pays for long-term care services if you need care
- If care is never needed, the asset passes onto your heirs creating a legacy
- It offers the option to return your premium to you if you ever change your mind.
While others states have a newer OneAmerica AssetCare product, California is still using an older version.
However, this is actually great because the older product has some nice features that were lost in the product update.
For example, AssetCare in California offers a joint class and joint equal age policy.
The joint class feature allows for more flexible underwriting while the joint equal age feature allows for better pricing.
With the joint class feature, a healthy spouse may be able to help a not so healthy spouse qualify for decent coverage.
With the joint equal age feature, a younger spouse can help reduce the premium for a spouse that is older which is great.
There are some differences where AssetCare in California fall short of AssetCare in other states.
For example, the eliminiation period for home healthcare in other states is 0 days but in California it is 30 days.
Nevertheless, for a general understanding on how Asset Care works, please look at our OneAmerica article.
Pacific Life PremierCare – CA
Pacific Life’s PremierCare is as simple a hybrid LTCi policy as you can get. It does not have much features that make it stand out.
So here’s how it works:
- In the event you need long-term care, it provides a long-term care benefit
- If you pass without ever needing care, it provides a death benefit to your loved ones
- If you ever change mind, it offers a return of premium
Now there are some differences between the version available in California and the other 49 states. However, they are not major differences.
First, unlike the other states, PremierCare in California only allows for a single premium payment. It’s a one-time payment that cannot be spread over time. This would not be helpful if you were looking to pay over time.
The second notable difference is PremierCare in California has a first day 100% return of premium built into the policy. This is a plus as other states get their built-in return of premium on a vested schedule.
One last notable difference is PremierCare in California only pays benefits by reimbursement. This means you must submit bills or receipts of service in order to receive benefits.
However, in other states, they give you the option to receive a cash benefit. (The cash benefit typically reduces your benefit amount to 80% of benefits).
Nevertheless, I would say Pacific Life PremierCare in California is not much different than the product available in other states.
Lincoln MoneyGuard -CA
Lincoln Financial’s MoneyGuard in California is currently the “MoneyGuard II” product. For most states, this product became obsolete at the end of 2019. The rest of the country is experiencing the new and revised “MoneyGuard III.”
Nevertheless, MoneyGuard in California is like any other hybrid LTC insurance. It offers:
- LTC insurance in the event you need long-term care
- A death benefit in the event you never need care
- A return of premium option if you change your mind
The major difference with MoneyGuard II in California is it has less features than the newer MoneyGuard III. However, the key features that make the MoneyGuard product unique still remain.
MoneyGuard II in California has its notable “No Elimination Period” feature. This means that there is no waiting period for eligible claims.
In addition, MoneyGuard II in California offers a built-in 80% return of premium. This is a plus as MoneyGuard in other states has a lower built-in return of premium at 70 percent.
Lastly, due to policy design, MoneyGuard II in California prices well at the 6 year benefit period option. However, it does not price as well on the 5 year and 7 year benefit period options.
This is unlike MoneyGuard III as it tends to price more evenly across benefit period options. Nevertheless, MoneyGuard II in California still offers great protection and benefits for residents of the state.
Nationwide CareMatters – CA
Nationwide CareMatters in California is a simpler version of the CareMatters II being offered in other parts of the country.
Although CareMatters in California does not offer many of the features CareMatters II offers, it still provides the benefits you should expect in any hybrid LTC policy. It provides:
- Cash Benefits to pay for long-term care services
- A valuable death benefit in the event you never need care
- A useful return of premium option if you ever change your mind
Now the only unique feature CareMatters offers in California is its 100% cash benefit. This means all benefits are paid directly to you the insured. There is no need to submit receipts or bills of services in order to receive benefits.
Besides the cash benefit, CareMatters in California also offers a built-in 100% return of premium option. This is a great option to have. Knowing you can get a full return of premium gives you added peace of mind.
Lastly, CareMatters offers one of the highest guaranteed minimum death benefits. The guaranteed minimum death benefit is the amount given to your loved ones if you’ve exhausted your policy’s LTC benefits.
Although it may lack features that are offered in other states, CareMatters can still provide great value to Californians.
Conclusion – Valuable Options Available In California
Although the products in California might be slightly different, they still provide great value to Californians. In some instances, Californians may have access to quality features that are now obsolete for the rest of the country.
Therefore if you are in California and would like more information regarding the available Hybrid LTC products and how they work feel free to gives us a call at 1(800) 498-3955. You can also schedule a call for a free quote!