Long-Term Care Insurance

Long Term Care Strategies

Long-Term Care Insurance

Get the care you need when you are no longer able to care for yourself adequately or safely, without relying on relatives or friends. These costs aren’t covered by Medicare or regular health insurance.

Traditional Long-Term Care Policies

Standalone, traditional policies with a variety of care options whether you’re living in your own home or in a facility.

Hybrid Life Insurance and Long-Term Care Policies

Long-term care benefits that are attached to life insurance policies through combination policies or living benefits.

Hybrid Annuity and Long-Term Care Policies

Long-term care options with annuities. Take advantage of regular monthly payments to cover long-term care costs even if you’re not in perfect health.

Long-Term Care and You

As we consider our future and retirement, it’s important to think about our long-term care needs. Long-term care insurance can provide financial protection and peace of mind for the approximately 70% of us who will probably need help with activities of daily living in the future. 

Long-term care insurance is designed to cover expenses related to medical or personal assistance you may need due to a disability, chronic illness or cognitive impairment. It can pay for services such as nursing home stays, home health aides, adult daycare and assisted living facilities. Depending on your policy’s coverage limits and other factors like your age when you purchase the policy, long term care insurance could save you thousands of dollars in out-of pocket costs associated with these services if they become necessary later on down the road. 

Additionally, having this type of coverage allows you more choice than relying solely on Medicaid – which typically only covers certain types of nursing homes – since many policies also cover alternative forms such as assisted living facilities that are often not covered by government programs. There are also tax advantages associated with some policies that allow premiums paid throughout one’s lifetime to be deducted from taxable income. Contact your tax professional for more information.

For those of us looking ahead at our potential healthcare needs down the line, investing in a quality long-term care insurance policy now could provide much-needed security should an unexpected event occur.

Questions? See our Long-term-care FAQs below or Contact Us.


Long-Term Care Planning

Long-term care is provided to people who can no longer function safely and/or physically on their own. Care can be provided by family members, paid caregivers, or facilities and can be very expensive. Women live longer so costs will be higher. Skilled nursing homes offer private rooms for $9,000+ per month and semi-private rooms for $7000+ per month depending on where you live. Wouldn’t you rather be cared for at home?


Seniors age 65+ who will likely need long-term care​ in the future

3.7 years​

Average long-term care facility stay length for women​

How will you pay for your future care?

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long term care insurance 101

Long-Term Care FAQs

What is long-term care insurance?

Long-term care insurance is a type of insurance policy that is designed to provide financial coverage for people who need assistance with at least two activities of daily living due to illness, injury, or other conditions. This type of insurance helps individuals pay for the cost of long-term care services, such as home health care, nursing home care, and assisted living facilities.

What are activities of daily living?

Activities of daily living include dressing, eating, toileting, continence, bathing, and transferring (moving into or out of a bed, couch, chair or to the toilet).

What is covered by long-term care insurance?

Long-term care insurance typically covers services such as in-home care, assisted living facilities, and skilled nursing home care. Some policies may also cover adult day care and respite care. The benefits of long-term care are generally listed as a daily or monthly benefit amount.

How much does Long-Term-Care cost? What are the benefit amounts of long-term care insurance?

A long-term care policy usually shows a daily and/or monthly benefit amount, as well as a lifetime benefit amount. The benefit amount you choose will vary depending on where you live, your income now and going forward into retirement, and the type of care you need (in-home, facility, memory care). Check out the cost of care in your area.

When buy long term care insurance?

It’s recommended that people consider getting long-term care insurance protection in their 40s, 50s or early 60s, before any serious health issues arise. This helps to ensure that you are able to qualify for coverage and can receive the lowest premium rate possible. However it is still possible to obtain long-term-care insurance in your 70s and 80s. Just expect to pay more for it.

Does Medicare cover long-term care costs?

Medicare covers a very limited amount of long-term care costs. Medicare covers 100% of medically-necessary skilled nursing costs for up to 20 days in a facility. Days 21-100 you will have a co-pay coinsurance of $200 per day. Medicare does not pay anything for care in a nursing facility over 100 days. You are responsible for that cost. https://www.medicare.gov/coverage/skilled-nursing-facility-snf-care . Medicare also does not cover any custodial care, like caregiver assistance received at home or in an assisted living residence. 

What is a hybrid long-term-care policy?

There are hybrid life insurance + long-term care policies (term and whole life options), and annuity + long-term care policies. Hybrid policies offer both the protection of long-term care coverage as well as either life insurance death benefit or annuity income benefits. 

How much does long-term care insurance cost?

The cost of long-term care insurance varies depending on a number of factors, such as your age, health status, and the specific policy you choose. On average, long-term care insurance policy premiums range from $500 to $4,000+ per year. Keep in mind these annual premiums can save you tens of thousands of dollars in the future if you need long-term-care.

Is long-term care insurance tax-deductible?

Tax-qualified long-term-care insurance policy premiums can be, depending on your income, age, and if your total medical expenses exceed a certain percentage of your income. Benefits paid by the policy are generally tax-free. If you are self-employed and have made a net profit, your premiums should be tax-deductible. Consult a tax professional to see if premiums may be deducted in your situation.

What happens if I don’t use my long-term care insurance?

It depends on the type of policy you get. For some policies, if you do not end up needing long-term care services, you will not receive any benefits from your policy. Some policies also have a death benefit. Other policies offer a return of premium option, which allows you to receive a refund of your premium payments if you do not use your policy. Additionally, some policies share benefits between you and your spouse, so if you do not end up using the benefit, they roll over to your spouse for their use.

What are the benefits of long-term care insurance?

The benefits of long-term care insurance include the ability to pay for long-term care services, which can be very expensive. This can help to protect your retirement savings and ensure that you receive high-quality care in the event that you need it. Carefully review and compare different long-term care insurance policies to find the one that best meets your needs and budget.

What are the eligibility requirements for long-term care insurance?

Eligibility requirements for long-term care insurance vary depending on the specific policy you choose. Generally, you must be in good health at the time you apply for coverage and you must be able to perform basic activities of daily living, such as bathing, dressing, and eating, without assistance. If you have pre-existing conditions or health issues, you may not be eligible for coverage, or care for that specific condition may be excluded. Contact us and we’ll review your specific needs and see if you are eligible.

Can I get long-term care insurance if I have a pre-existing condition?

It depends on the specific pre-existing condition and the policy you choose. Some policies may exclude coverage for certain pre-existing conditions, while others may offer coverage with a waiting period or higher premiums.

What is a waiting period or elimination period?

A waiting period or elimination period is the amount of time that you must wait after becoming eligible for benefits before your policy begins to pay out. Waiting periods can range from 30 days to 180 days or more, and longer waiting periods can help to lower your premium costs.

How do I make a claim on my long-term care insurance policy?

To make a claim on your long-term care insurance policy, you will need to contact your insurance provider and provide them with documentation of your need for long-term care services. Your insurance provider will review your claim and determine whether or not you are eligible for benefits.

What happens if I can no longer afford my long-term care insurance premiums?

If you can no longer afford your long-term care insurance premiums, you may be able to reduce your coverage or cancel your policy. Some policies may offer a non-forfeiture benefit, which allows you to receive a reduced benefit amount if you cancel your policy. Carefully consider the implications of reducing or canceling your policy, as it may leave you without sufficient coverage if you need long-term care services in the future.

Do I really need long-term care insurance?

Whether or not you need long-term care insurance depends on a number of factors, such as your age, health status, and financial situation. If you have significant retirement savings and are able to pay for long-term care services out of pocket indefinitely, you may not need long-term care insurance. However, if you are concerned about protecting your savings and ensuring that you can receive high-quality care in the event that you need it, long-term care insurance may be a good option to consider.

Can I use my long-term care insurance to pay for care in a foreign country?

It depends on the specific policy you choose. Some long-term care insurance policies may cover care received in a foreign country, while others may not. It’s important to carefully review the terms of your policy and speak with your insurance provider to understand what is and is not covered. If you travel to a foreign country even for a short time, consider international medical travel insurance.

Can I change my long-term care insurance policy after I purchase it?

Yes, you may be able to make changes to your long-term care insurance policy after you purchase it. For example, you may be able to increase or decrease your coverage amounts, change your waiting period, or add or remove optional benefits. However, making changes to your policy may affect your premiums, so it’s important to carefully review the implications of any changes before making them.

How do I choose the right long-term care insurance policy?

Choosing the right long-term care insurance policy requires careful consideration of your individual needs and budget. Review the terms of different policies, including the coverage amounts, waiting periods, and premium costs, to determine which policy is the best fit for you. It’s also a good idea to consult with an insurance agent familiar with long-term care to help you make an informed decision.

Want to learn more about long-term care insurance?

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