Long-term care
The retirement risk most people ignore until it is too late
70% of people turning 65 will need some form of long-term care. The average cost exceeds $100,000 per year. Planning now protects everything you have saved.
Long-term care is the largest unplanned expense in retirement
A serious illness, a fall, or cognitive decline can require years of professional care — at home, in an assisted living facility, or in a nursing home. Medicare does not cover custodial care. Medicaid requires spending down most of your assets first. Without a plan, long-term care costs can wipe out a lifetime of savings in just a few years.
Your long-term care coverage options
There is no single right answer — the best option depends on your health, assets, and family situation.
Traditional long-term care insurance
Pays a daily or monthly benefit for qualifying care. Premiums are lower when purchased younger and healthier. The risk: premiums can increase over time, and you may pay for coverage you never use.
Pros
- Dedicated coverage
- Tax-deductible premiums (in some cases)
- Protects assets from spend-down
Cons
- Use-it-or-lose-it
- Premiums can increase
- Underwriting required
Hybrid life / LTC policies
Life insurance or annuity policies with a long-term care rider. If you need care, the policy pays benefits. If you do not, the death benefit passes to your heirs. No use-it-or-lose-it concern.
Pros
- Death benefit if care not needed
- Premiums typically fixed
- Easier underwriting
Cons
- Higher upfront cost
- Less flexibility
- Lower LTC benefit per dollar
Self-insuring
Setting aside a dedicated pool of assets to cover potential care costs. Works best for those with significant assets. Requires discipline and a clear plan for which assets are earmarked for care.
Pros
- Full control
- No premiums
- Assets remain in estate if unused
Cons
- Requires significant assets
- Catastrophic care can exceed reserves
- No leverage
Medicaid planning
For those who cannot afford private insurance, Medicaid covers long-term care — but only after spending down most assets. Medicaid planning with an elder law attorney can protect some assets for a spouse.
Pros
- Covers care when assets are depleted
- Spousal protections available
Cons
- Requires asset spend-down
- Limited facility choices
- Complex rules vary by state
Common questions
Protect your retirement from a long-term care event
We will review your current situation and help you evaluate the options that make the most sense for your assets, health, and family.
Schedule a Conversation