Long-Term Care Insurance: The Plan Your Future Self Will Thank You For

Let’s talk about the elephant in the room. No, not inflation (although, yeah… yikes). We’re talking about something a lot of people don’t want to think about but absolutely should: long-term care.

If you’re like most of our clients, you’ve worked hard, saved well, and built a life you’re proud of. Maybe you’ve even done some good estate planning, bought life insurance, and set up an investment portfolio that hums. But there’s one big, looming expense that could derail all of that: needing care later in life.

Long-term care (LTC) isn’t just nursing homes and wheelchairs. It’s home health aides, assisted living, memory care, rehab…and it’s expensive. According to Genworth’s 2024 Cost of Care Survey, the national median annual cost of a private room in a nursing home is over $116,000. Home health care? Around $66,000 a year. And none of that is covered by Medicare for the long haul.

So here’s the big question: if you do need care, how are you going to pay for it?

What LTC Insurance Is—and Isn’t

Let’s clear up a common myth: long-term care insurance is not just for the elderly. The best time to buy it is actually in your 50s or early 60s—when you’re more likely to qualify and your premiums are manageable. It’s also not just for people with no assets. In fact, it’s often the folks who’ve accumulated wealth that benefit the most—because it helps protect everything they’ve worked for.

LTC insurance is designed to reimburse you for services that help you perform the basic “Activities of Daily Living” (ADLs), like bathing, dressing, eating, and using the bathroom. You can receive care at home, in an assisted living facility, or in a skilled nursing home. The right policy gives you flexibility and options—without having to liquidate your investments or burden your family.

Why It Matters in the Bigger Picture

We think of long-term care insurance as one piece of a well-balanced financial plan. You wouldn’t leave your family unprotected if you died too soon—so why leave them exposed if you live too long and need help?

Think about it this way: if your portfolio is designed to generate income for 30+ years of retirement, what happens if you have to start draining it quickly to pay $8,000 a month for home health care? That could wipe out decades of careful planning. And if you’re married, that could mean your spouse’s financial security goes out the window with it.

Options for Coverage

There are more choices today than ever before, which is great—but also overwhelming. Here’s a quick breakdown of the most common types of LTC solutions:

• Traditional LTC Insurance:
These are standalone policies that pay out if you need care. The upside: typically the most bang for your buck. The downside: premiums can increase, and if you never use it, you don’t get anything back.
• Hybrid Life/LTC Policies:
This is where life insurance and long-term care meet in the middle. These policies offer a death benefit if you don’t need care—but allow you to accelerate that benefit to pay for LTC if you do. It’s kind of a “use it or use it differently” situation. These are great for people who hate the idea of paying for something they might never use.
• Asset-Based LTC:
These are lump-sum funded policies (usually from repositioned assets or a 1035 exchange from an old annuity or life policy) that create a pool of LTC benefits. Great option if you’ve got lazy money sitting on the sidelines and want to turn it into future care protection.

We help clients evaluate which option fits best based on age, health, liquidity, and planning goals. There’s no one-size-fits-all here. That’s why having a “personal CFO” on your side helps.

LTC Planning = Family Planning

One thing people don’t always realize: long-term care doesn’t just affect you. It affects everyone who loves you. Without a plan in place, it’s often adult children—who are juggling careers, their own kids, and maybe their own financial stress—who step in to help. That can create emotional strain, not to mention financial pressure.

Planning ahead means you’re saying to your family, “I’ve got this.” And they’ll thank you for it—eventually.

The Bottom Line

We get it—talking about needing help someday isn’t fun. But you know what is? Knowing your retirement income is safe. Knowing your spouse and kids won’t have to scramble. Knowing your plan actually covers what real life might throw at you.

That’s where LTC insurance comes in. It’s not just a policy—it’s a permission slip for your future self to age with dignity and choice. It’s a financial backstop. And for many of our clients, it’s one of the smartest moves they make.

So let’s add it to your checklist.

You’ve got life insurance? ✅
A well-balanced portfolio? ✅

Now let’s talk long-term care. Your future self will be glad you did.

Want to run the numbers or see how LTC fits into your big picture? Let’s schedule a conversation. We’ll walk you through the options and help you make a plan that supports the life you want—now and later.