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Preparing for Long-Term Care

June 10, 2020

Did you know that Medicare typically doesn’t cover nursing homes or any in-home care? According to statistics, someone turning 65 today has almost a 70% chance of needing some type of long-term care assistance.1 This includes self-reliant activities such as bathing, eating, getting dressed, using the bathroom, and even getting out of bed. Costs for these types of support services can cost up to $100,000 annually.2 Long-term care insurance, or LTCI, can help cover these expenses so that you can preserve assets for other goals such as your retirement. When considering LTCI, here are some factors to keep in mind:

  • What all does it cover?
    • Nursing home care
    • Assisted living facilities
    • In-home care
    • Adult daycare
    • Care advisory services
    • Home modifications
  • When’s the best time to buy LTCI? The American Association for Long-Term Care Insurance (AALTCI) recommends purchasing in your mid-50s. The reason is that your age and health plays a factor in rates and qualifications simply because your health diminishes with your age.
  • What are the costs of LTCI? The costs varies greatly depending on a number of variables that include:
    • Age and health: more health problems likely come with age
    • Gender: women typically have higher rates because they live longer
    • Marital status: premiums are higher for single people
    • Amount of coverage: based off of daily and lifetime benefits, cost-of-living, and more

As you get closer to the age of retirement, planning ahead can help spell the difference between a happy retirement and a stressful one. Balance out your portfolio with an LTCI to further solidify your future. Reach out to us today, and we’ll walk you through your options for developing a plan to avoid these potential roadblocks.


This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.  Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

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