Long-Term Care Isn’t Just a Medical Issue—It’s a Financial One
When people think about retirement, they often picture travel, relaxation, and family time—not the possibility of needing extended care in a nursing home or assisted living facility. But here’s the truth: nearly 70% of people over age 65 will need some form of long-term care.
And with the national average cost of a private nursing home room now over $100,000 per year, the financial burden can devastate even well-prepared retirees. The good news? With smart planning, you can protect your savings and your loved ones from financial hardship.
Why Long-Term Care Is Often Overlooked—Until It’s Too Late
Long-term care refers to help with daily activities like bathing, dressing, and eating—services that are not covered by Medicare unless they’re directly tied to short-term medical recovery.
Many families mistakenly believe Medicare or health insurance will cover these expenses. In reality, most long-term care is paid out-of-pocket or through long-term care insurance. Without a plan, care needs can quickly erode a lifetime of savings, especially for couples where one spouse requires care and the other still depends on joint assets.
Your Options for Covering Long-Term Care Costs
You have several options for preparing financially for long-term care—and the right choice depends on your age, health, finances, and goals.
- Long-Term Care Insurance (LTCI):
Traditional LTCI policies cover daily care expenses but have gotten more expensive and harder to qualify for. Still, for some, they provide valuable peace of mind—especially when purchased in your 50s or early 60s. - Hybrid Life Insurance with LTC Riders:
These policies combine life insurance and long-term care coverage. If you don’t end up needing care, your beneficiaries receive a death benefit. If you do need care, the policy can pay out early to cover those costs. - Self-Funding Strategy:
If you have sufficient assets, you may choose to earmark a portion of your portfolio for potential care costs. This requires careful planning to ensure the funds grow appropriately and remain available when needed. - Medicaid Planning:
Medicaid may pay for long-term care, but only after you’ve spent down most of your assets. Some retirees work with elder law attorneys to protect assets ahead of time, but this approach requires early action and expert guidance.
Why Early Planning Pays Off
The earlier you prepare for long-term care, the more options you’ll have—and the more affordable those options will be. Waiting too long can result in higher premiums, fewer choices, or disqualification due to health issues.
Don’t let an unexpected healthcare event derail your retirement. A proactive long-term care plan gives you—and your loved ones—confidence and control in the years ahead.
We Help You Prepare for the What-Ifs of Retirement
At Heritage Financial Planning, we include long-term care planning as a key component of our HFP S.T.A.R. Strategy (Seasonal Transition into Advanced Retirement). We’ll help you explore your coverage options, assess your financial readiness, and integrate care planning into your broader retirement strategy.
Let’s build a plan that protects your family, your future, and your legacy. Schedule your long-term care planning consultation today by calling our office at (574) 606-4406.
Click here to learn more about our HFP STAR Strategy process.
Sources:
• U.S. Department of Health and Human Services: https://acl.gov/ltc
• Genworth 2024 Cost of Care Survey: https://www.genworth.com
• AARP: Long-Term Care Planning Guide – https://www.aarp.org
• Heritage Financial Planning: https://heritagefinancialplanning.net/about/heritage-financial-star-strategy/
