Protection
Long-Term Care
Plan for care before you need it.
Most Americans over 65 will need long-term care — and Medicare doesn’t cover it. A plan protects both your retirement and your family.
Plan for care before you need it.
Most Americans over 65 will need long-term care — and Medicare doesn’t cover it. A plan protects both your retirement and your family.
There are three big misunderstandings about long-term care.
What you assume about care — who needs it, where it happens, and who pays — is often the opposite of reality. Getting the facts straight is the first step to a plan.
Long-term care isn’t covered by Medicare — a costly surprise for many families.
About 95% of people receiving long-term care are not in a nursing home.
Most Americans receive care in their own home — where they’d prefer to be.
Figures are from third-party sources (U.S. Congressional Budget Office; Association of Long-Term Care Insurance) and are general estimates that vary by individual circumstances.
You’re generally considered to need long-term care if you have a cognitive impairment (such as dementia or Alzheimer’s), or you need help with at least two of the six IRS-recognized “activities of daily living.”
Talk to an advisorHelp with two or more typically qualifies.
Think about paying for care in two ways: money and time.
You can pay for someone’s time to care for you, or a family member can take their time away from work, family, and life to do it. Either way, there’s a cost — and care tends to grow in steps, from a few hours a day to round-the-clock or facility care as needs increase.
According to the Genworth Cost of Care Survey, hiring an agency home health aide runs about $30/hour (with a 4-hour daily minimum). The national average for an assisted-living facility is roughly $64,000/year for a private room, and a semi-private nursing-home room about $104,000/year — with long-term-care costs rising faster than general inflation.
There are really two problems to solve: the first 120 days, and everything after.
Many coverage strategies don’t begin paying until the 91st day of care — an “elimination period” that works like a deductible, but measured in days instead of dollars. Even then, it can take another 30–40 days for a first claim to be processed and reimbursed. From a cash-flow standpoint, plan on roughly 120 days of care costs out of pocket, on top of your normal living expenses.
There are many strategies to manage this risk — and helping you choose among them is exactly what we do. The goal is simple: you don’t want to be a burden on your family, and your family would rather oversee your care than be the ones providing it.
Cost figures are national averages drawn from third-party sources (e.g., the Genworth Cost of Care Survey) and vary by location, provider, and year; the figures cited may not reflect the most recent survey. Guarantees on insurance products depend on the issuing company’s claims-paying ability. This page is general information, not advice.
Let’s build a plan to manage long-term-care risk before you need it.