Understanding Long-Term Care Insurance: Is It Right for You?

As we plan for retirement and our golden years, many of us think about savings, pensions, and medical insurance. But one crucial element often goes overlooked—long-term care. It’s not just about hospital visits or medical treatment. It’s about the help you may need with everyday tasks like bathing, dressing, or preparing meals. And that’s where long-term care insurance comes in.

At Resolute Insurance Advisors, we believe in equipping our clients with the information they need to make smart, forward-thinking decisions. This article will guide you through what long-term care insurance is, why it matters, and how to determine whether it’s the right fit for your financial and healthcare strategy.

What Is Long-Term Care Insurance?

Long-term care insurance is a policy designed to help cover the costs of care services you may need if you’re unable to perform basic activities of daily living (ADLs) on your own—such as bathing, dressing, eating, toileting, transferring, and continence.

These services are typically not covered by standard health insurance or Medicare. Long-term care insurance steps in to cover care provided at home, in assisted living facilities, adult day care centers, nursing homes, and sometimes even hospice care.

Why Is Long-Term Care Insurance Important?

1. Rising Costs of Care

According to Genworth’s 2024 Cost of Care Survey, the median cost of a private room in a nursing home is over $108,000 per year. Home health aides cost an average of $27 per hour, and assisted living facilities average around $60,000 annually.

Without a long-term care policy, these costs can quickly deplete your savings and retirement income, potentially forcing loved ones to step in—physically, financially, or both.

2. Medicare and Medicaid Limitations

Many people assume Medicare will cover long-term care needs, but that’s only partially true. Medicare may cover short-term rehabilitation after a hospital stay, but it does not pay for extended custodial care (non-medical assistance with ADLs).

Medicaid, on the other hand, does cover long-term care, but only for individuals with limited income and assets. Qualifying may require spending down your life savings—an option most people would rather avoid.

3. Protecting Your Family and Assets

Having a long-term care policy in place allows your family to focus on providing emotional support rather than physical care or financial help. It also protects your estate and assets, allowing you to preserve your legacy for your children or charitable causes rather than spending it all on care.

What Does Long-Term Care Insurance Cover?

Coverage varies by policy, but most long-term care insurance plans help pay for:

• In-home care services

• Assisted living facility expenses

• Skilled nursing home care

• Adult day care services

• Respite care for family caregivers

• Home modifications (ramps, grab bars, etc.)

Policies generally kick in when a medical professional certifies that you’re unable to perform a certain number of ADLs, or you have a cognitive impairment such as Alzheimer’s or dementia.

When Should You Buy Long-Term Care Insurance?

The ideal time to consider a long-term care policy is in your late 40s to early 60s. Here’s why:

• Younger applicants are healthier and more likely to qualify for coverage.

• Premiums are lower when you purchase earlier.

• You lock in your eligibility before any chronic conditions might make you uninsurable.

Waiting until your 70s can significantly increase premiums—or worse, result in a denial due to health issues.

What Are the Benefits of Long-Term Care Insurance?

1. Financial Security

Long-term care insurance helps protect your savings and income from being drained by care costs. With the average long-term care need lasting about three years, even moderate coverage can offset hundreds of thousands of dollars in expenses.

2. Choice of Care

With coverage in place, you can choose the type and setting of your care—at home, in an assisted living facility, or at a skilled nursing center. It gives you more freedom and control over your circumstances.

3. Relief for Loved Ones

Your children and other family members won’t need to shoulder the burden of caregiving or scramble to find funds for care. It eases the emotional, physical, and financial stress on your support network.

4. Peace of Mind

Perhaps most importantly, long-term care insurance provides peace of mind. You and your loved ones can rest easier knowing that, should the need arise, you are prepared.

How to Know If It’s Right for You

Long-term care insurance isn’t one-size-fits-all. To decide if it’s a good fit, ask yourself these questions:

1. Do I Have Assets to Protect?

If you have a home, retirement savings, or investments you’d like to preserve for yourself or your heirs, long-term care insurance can shield them from high care costs.

2. Do I Want to Stay Independent?

If your goal is to stay in your home for as long as possible, a policy that covers in-home care can help make that a reality.

3. Do I Have Family Who Can Help?

Even if you have adult children or a spouse who might assist, their ability to provide full-time care may be limited. A policy can fill in the gaps or provide respite care to reduce burnout.

4. Can I Afford the Premiums?

Premiums can range from $1,500 to $3,500+ per year depending on your age, health, and coverage level. If you have a stable income and room in your budget, the cost may be worth the financial protection it provides.

5. What Are My Alternatives?

Some people use life insurance policies with long-term care riders, or create dedicated savings accounts or trusts. Others plan to rely on family or qualify for Medicaid. Comparing options with a licensed advisor helps clarify the best approach.

What to Look for in a Policy

Not all long-term care policies are created equal. Look for:

• Daily benefit amounts and duration of coverage

• Elimination period (waiting time before benefits begin)

• Inflation protection options

• Flexibility in care settings (home, facility, etc.)

• Strong insurer ratings and reputation

A licensed insurance advisor—like those at Resolute Insurance Advisors—can help you compare policies, clarify terms, and customize coverage that aligns with your goals.

Conclusion: Planning Today for Peace of Mind Tomorrow

Long-term care insurance isn’t just about managing risk—it’s about giving yourself and your loved ones the gift of security, dignity, and choice.

As healthcare costs rise and life expectancy increases, having a plan for long-term care is more important than ever. Whether it’s the right choice depends on your health, assets, personal goals, and family dynamics.

At Resolute Insurance Advisors, we’re here to walk you through your options with clarity and compassion. Let us help you explore whether long-term care insurance makes sense for your future—so you can live with confidence today.

Ready to Talk?

Schedule a free consultation with a licensed advisor today to explore your long-term care insurance options. Contact Resolute Insurance Advisors or call us directly to get started.