Long-Term Care Planning

Long-Term Care Insurance

As you save for retirement, you’re putting in the hard work needed to live the life you want. Maintaining that lifestyle is possible with long-term care insurance.  

Approximately 70 percent of people 65 and older will require assistance with everyday tasks like getting dressed or going to the doctor. This type of care is generally not covered by health insurance. Additionally, it is also not covered by most disability insurances. Nearly half of the people who require long-term care spend more than they can afford.  This is where long-term care (LTC) insurance can be helpful. Also, you may want to consider buying long-term care insurance while you’re still healthy, since you may not qualify later if your health deteriorates.


Long-Term Care Insurance Costs

The cost of long-term care varies based on geographic location and type of care required. Long-term care without insurance can be very expensive. The Alzheimer’s Association estimated that people with dementia or Alzheimer’s spent 66 billion dollars on out-of-pocket medical care in 2019. And these figures don’t include costs that are not reported. Also, Medicare does not cover all health care costs. Even with good health insurance, you might not receive other care assistance.

However, long-term care insurance can be affordable. Generally, people begin reducing their monthly LTC premiums around age 50, but some start earlier. Moreover, some retirees may have other insurances that impact their available long-term care options. Legacy Group Planning can help you evaluate your options.

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Benefits of LTC insurance

There are other reasons to consider long-term care insurance besides the high cost of care. One top reason is protecting your retirement savings. Costs associated with nursing homes, home care, and assisted living can quickly eat up your income. Unfortunately, unplanned expenses cause many retirees to lose the money they have worked hard for.

Alternatives to LTC

Additional options may be available to you besides an LTC-only policy.

For instance, some permanent life insurance policies include long-term care coverage. Also, certain annuities may also protect your income in the event you’ll need long-term care. Some annuities provide LTC riders. It is possible to use these policies to gain access to money early to pay for long-term care. You may have the option to choose life insurance that covers critical illness or critical care.

You may need long-term care if you are no longer able to perform basic everyday tasks on your own. As you get older, you might want to consider how you would handle a possible long-term care event. Connect with us to explore how to protect your wealth and health long-term.

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