When Mark's mother had a stroke at 72, his family had to think fast and make decisions about her care. The preferred option—an assisted living facility near home—cost over $8,000 per month. Mark and his siblings quickly realized they would have to dip into their savings to cover the gap, making the situation stressful, emotional and financially draining.
Most people don't think about long-term care until they or someone close to them needs it. By then, options may be limited, and costs can be staggering. Long-term care (LTC) insurance isn't just about protecting your savings — it's about protecting your independence, your choices, and your family's peace of mind.
With long-term care becoming a growing concern, we'll walk through why LTC insurance deserves a place in your financial plan, and what features you may want to consider.
Why consider long-term care insurance?
Even if retirement is still years away, now is the time to think about long-term care planning. Here's why:
- The rising cost of care
Nursing homes, assisted living, and home health aides are getting more expensive every year. In many areas, a private room in a nursing home can exceed $100,000 annually — and those costs are climbing. - Medicare doesn't cover it
There's a common misconception that Medicare or health insurance will cover long-term care. Medicare—in certain cases—only covers limited, short-term skilled nursing care — it won't protect you from extended care needs. - Protecting your assets and legacy
Without insurance, long-term care expenses come out of pocket. That can quickly derail retirement plans and legacy goals, especially for high-net-worth individuals with more at stake. - Maintaining independence and choice
With LTC insurance, you decide where and how you receive care — whether at home, in an assisted living facility, or a private care setting. Without it, options may be limited by what you or your family can afford. - Easing the burden on family
Having a plan in place spares your loved ones from having to make rushed, emotional, or financial decisions during a crisis. It's a gift of both financial security and emotional clarity. - You're healthiest now
The best time to buy LTC coverage is when you don't need it — and when you're healthy enough to qualify. Waiting too long can mean higher premiums, limited options, or even denial of coverage.
What to look for in a policy
Not all long-term care insurance is created equal. As you compare your options, consider these key features:
- Daily/monthly benefit amount
Does the policy reflect current local care costs? Is it sufficient for your desired level of care? Some modern policies even pay benefits in cash, allowing for more flexibility — including the option to pay family members or informal caregivers.
- Benefit period or pool
How long will the policy pay out? Consider a minimum of 3–5 years; longer benefit periods may be worth it if there's a family history of chronic illness. - Inflation protection
This is essential, especially if you're under 60. Care costs can double every 20 years — make sure your policy keeps pace with rising expenses. - Shared care for couples
Some policies allow spouses to share their coverage if needed — If one partner uses up their benefit, the other can access the remaining balance. This flexibility can be especially valuable. - Home care vs. facility care
Does the policy cover both? Most people prefer to receive care at home. Make sure the policy doesn't restrict benefits to facility-based care. - Policy guarantees
Some hybrid long-term care insurance policies offer fully guaranteed benefits, meaning the premiums will never increase. Also if you don't use the long-term care coverage, a portion of the premiums is returned to beneficiaries in the form of life insurance. It's a way to ensure the money you've invested doesn't go to waste. - Carrier strength and claims reputation
Choose a financially strong company with a solid history of paying claims. You want your policy to be there when you need it — not just a promise on paper. - Tax deductibility for business owners
Depending on your business structure and tax situation, you may be able to deduct a portion of your long-term care insurance premiums. This can be a smart strategy for incorporating LTC coverage into a broader financial or executive benefits plan.
Plan ahead to stay in control
Long-term care insurance isn't one-size-fits-all — but not having a plan at all can be far more costly. The right policy offers you and your family protection, flexibility, and peace of mind when it matters most.
Because policies vary widely in cost, benefits, and flexibility, it's essential to work with an independent advisor who can compare options across multiple carriers. Start the conversation today—not because you expect to need care soon, but because planning early gives you more choices to find a solution that truly fits your goals, lifestyle and budget.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
