Long-Term Care Planning

Long-term care is not just about nursing homes. It includes ongoing help with daily activities like bathing, dressing, eating, or moving around, whether due to aging, injury, or illness. Care can take place in your home, an assisted living facility, or a nursing home, and it’s expensive.

When is the right time to plan?

The ideal time to consider LTC coverage is typically between your late 40s and mid-60s, when:

• Premiums are more affordable

• Your health status makes you more insurable

• You can still qualify for hybrid or asset-based options with fewer restrictions

Waiting too long may lead to higher costs—or worse, being declined for coverage due to health issues.

Types of Long-Term Care Coverage

Not all LTC solutions are the same. Here are the three main types:

1. Traditional LTC Insurance

This is stand-alone coverage that pays monthly benefits for home care, assisted living, or nursing care.

• Lower cost initially

• “Use it or lose it” structure (like homeowners insurance)

• Premiums may increase over time

• Subject to underwriting

2. Hybrid Life + LTC Policies

These combine life insurance with built-in LTC benefits. If you don’t use the LTC coverage, your beneficiary receives a death benefit.

• Stable premiums

• Benefits are either paid for LTC or passed to heirs

• Popular with clients who dislike the “use it or lose it” model

• Can often be funded as a single payment or over 5–10 years

3. LTC Riders on Life or Annuity Products

Some life insurance and annuity products offer LTC access riders, allowing you to accelerate your policy’s death benefit to pay for care.

• Lower-cost way to add LTC protection

• Less robust coverage than dedicated LTC policies

• Not all riders meet tax-qualified LTC definitions

Why Plan Now?

Medicare does not cover most long-term care costs. Without a plan, these expenses can drain retirement savings and put pressure on loved ones. Planning early means more options, lower costs, and greater peace of mind.

Let’s talk through the pros and cons of each option and find the solution that fits your health, goals, and budget.