Many people assume that if they ever need help at home, they will simply hire a caregiver or use savings to pay for it. But when you look at the actual cost of care in California, those savings can disappear faster than most people realize. Planning ahead with the right insurance can make all the difference in keeping your independence, dignity, and financial security.
California has one of the highest costs of in-home care in the nation, and prices continue to rise each year. In 2025, the average hourly cost for a home health aide or personal caregiver in California is about $35 per hour. That means just 40 hours of care per week can total around $6,620 per month, or nearly $80,000 per year.
For individuals who need full-time help, the numbers are even higher. Around-the-clock in-home care can cost as much as $27,000 per month, or more than $300,000 per year, depending on the level of care required and the region. For families in Los Angeles and surrounding areas, this can quickly become unsustainable without advance planning.
Home care is more than just paying someone to be present. It includes the cost of trained caregivers, scheduling, transportation, insurance, and sometimes agency management fees. If the care involves help with bathing, dressing, medication reminders, or mobility support, the costs rise further. And if a person needs specialized care for dementia or other chronic conditions, the price can increase even more.
Unlike a one-time medical expense, long-term care is an ongoing need that can last months or even years. That's why relying on savings alone is risky — most families simply don't have hundreds of thousands of dollars available for extended home care.
Long-Term Care (LTC) insurance helps cover the cost of care at home, in assisted living, or in a skilled nursing facility. For many, it provides the ability to choose where and how they receive care. The right policy can pay for qualified caregivers and allow you to stay comfortably in your own home.
For those who want flexibility, Long-Term Care annuities can be especially appealing. With this type of plan, a single deposit can turn into two or three times that amount in tax-free benefits if care is needed. These benefits are designed under federal tax law to be income-tax-free when used for qualified long-term care expenses, including home care, assisted living, or nursing home costs.
If you never need care, your money is not lost — it can be returned to you or passed to your beneficiaries. That means you're not just protecting against risk; you're repositioning assets in a smarter, more efficient way.
The best time to plan for care is before you need it. Waiting until a health issue arises can limit your options or make coverage more expensive. By planning early, you ensure that care decisions are made on your terms — not in crisis mode. It's about dignity, choice, and protecting your family from financial strain.
At Landau Insurance Brokers in Los Angeles, we help clients throughout California and other states find the right Long-Term Care solutions for their needs. Whether you prefer traditional LTC insurance or an annuity-based plan with guaranteed, tax-free long-term care benefits, we can help you understand your options clearly and simply.
Life is unpredictable, but your future care doesn't have to be. Contact Landau Insurance Brokers today to discuss a personalized Long-Term Care plan that protects your comfort, your independence, and your family's financial peace of mind.
