Guest blogger: Curtis L. Turner III, CLU®, ChFC®, GFS®, Executive Ideas, Inc.
As we age, the question isn’t just who will take care of us—it’s how that care will impact our family emotionally, physically, and financially. Long-term care (LTC) is the support needed when someone can no longer perform activities of daily living (like toileting, bathing, dressing or eating) due to age, illness, injury or cognitive decline. Whether care is provided at home or in a facility, the costs and consequences can be significant.
The Reality of Long-Term Care
Clark Howard puts it plainly: “People think government will pay, but the government requires you to completely impoverish yourself before they will pay through Medicaid.” In fact, 70% of people over 65 will need some form of LTC, and relying on Medicare or Medicaid often means limited options and depleted assets.
Many people either ignore the issue or choose to self-insure, hoping they’ll never need care. But both paths often lead to liquidating assets, paying taxes and losing control over financial variables like inflation and market performance.
Smart Planning is Your Best Protection
4 Reasons to Consider Long-Term Care Insurance
- Gets you the care you need in the setting of your choice.
- Helps you maintain your independence.
- Can protect your retirement assets.
- Helps relieve financial and caregiving pressure on your family.
Common Misconceptions
- “I’ll never need it.” → 70% will.
- “I’ll buy it when I’m older.” → Half of those 70+ won’t qualify.
- “Medicare will cover it.” → Only for short-term, limited care.
- “Medicaid will cover it.” → Only once you’ve spent your assets down to $2000.
- “My family will take care of me.” → 54% of caregivers report emotional strain.
Instead of hoping for the best, consider hedging the risk. These options help protect your independence, your assets, and your family’s well-being.
- Traditional LTC Insurance: Offers coverage but is use-it-or-lose-it.
- Hybrid Life Insurance: Provides LTC benefits and a tax-free death benefit.
- Life Insurance with Accelerated Benefits: Allows access to the death benefit if care is needed.
Cost of Care in Georgia
Home health care, adult day care and assisted living make up 69% of those needing care, while nursing home care makes up 31% of those needing care. These costs can quickly drain savings, especially without a plan.
- Nursing Home (Private Room): $10,190/month
- Assisted Living: $5,238/month
- Home Health Care: $5,720/month
- Adult Day Care: $2,345/month
Who Should Consider LTC Insurance?
- Those with assets over $200,000
- Anyone wanting to protect income and maintain independence
- People who want control over where and how they receive care
Final Thought
If you haven’t allocated money for long-term care, you’ve essentially allocated all your money to it. Planning ahead with the help of a qualified advisor can make all the difference—for you and your loved ones.