It’s too much to think about, too complicated, and too expensive.These are common concerns we hear from clients when long-term care planning comes up.Thinking about aging and the possibility of needing care can feel overwhelming, but it doesn’t have to be.By focusing on three essential questions, you can create a thoughtful and comprehensive long-term care roadmap that can bring more clarity and confidence to your future:
- Where do you want to receive care?
- Who will make decisions about your care?
- How will it be paid for?
Where do you want to receive care?
For many, the answer is simple – at home.Aging in place is a common goal, but it comes with considerations.First, relying on home equity to pay for care may not be viable if you plan to remain in your home. Second, your home may require modifications to make it safe and accessible.These changes can be costly and should be factored into your planning.
Location also plays a significant role in the cost and availability of care. You may want to live near children or grandchildren, which could influence your choice of state or city. However, care costs vary widely by region.According to Genworth, in Rochester, MN—home of the Mayo Clinic—assisted living costs around $4,541 per month, while a private room in a nursing home can reach $9,885. In contrast, Bedford, NH saw care costs rise over 10% from 2024 to 2025,with assisted living reaching $11,100 per month and nursing home care costing up to $14,904 monthly.1
Who will make decisions about your care?
This question is often associated with estate planning, but it’s equally vital in long-term care planning.For couples, the decision-maker is usually a spouse or partner, but if your partner passes away or becomes unable to make decisions, someone else must be appointed.
Too often familial tension is caused by differences of opinion between siblings on care options for their parents. Family members who live near their aging loved ones and see them more regularly may feel more urgency than those who see them sporadically.
It is often not until everyone is in the same room that a productive conversation can occur, and needs are addressed. Therefore, putting in writing who you are appointing to make decisions on your behalf is the best gift you can give your family. You may have one child that will make medical and care decisions, while another oversees the financials. There is no one size fits all solution, and it is up to you to strike the balance that works best for your family.
How will care be paid for?
This is often the first question people ask—and the one that causes the most stress.Many clients aren’t sure how they’ll afford care, and the uncertainty can be paralyzing. While your home and retirement accounts are likely your largest assets, using them to fund care can disrupt other financial goals. Often, the best way to avoid having to tap into these assets is to transfer the risk to an insurance company.
There are many things to take into consideration when choosing a long-term care policy and an assortment of options with varying features available.Three common types of policies include:
Traditional LTC: These policies are purely insurance-based and typically offer lower premiums.You pay for coverage over time, and benefits are available when care is needed. Advantages include couple’s discounts, potential tax deductibility, and eligibility for state partnership programs that protect assets from Medicaid spend-down requirements.The downside to this type of policy is that if you never need care, the premiums paid are not refunded.
Life Insurance with a LTC Rider: This option combines life insurance with long-term care benefits.If you pass away without needing care,your beneficiaries receive a tax-free death benefit. If care is needed, the death benefit can be accessed early. For example, a $500,000 policy with a 3% monthly rider provides up to $15,000 per month for care. This flexibility makes it a popular choice for those who want dual-purpose coverage.
Asset based/Hybrid LTC: These policies offer long-term care benefits that may grow over time, along with a modest death benefit if care isn’t needed.A key advantage is the ability to pay premiums over a set period—such as a single lump sum or payments over 10 years—eliminating lifelong premium obligations. Hybrid policies are ideal for individuals who want predictable costs and the assurance that some value will remain for their beneficiaries.
Every individual’s care needs are unique, but having a plan in place can help ensure your wishes are honored and your loved ones are empowered to act on your behalf. Working with a financial advisor to explore your insurance options is more than just knowledgeable planning—it’s a gift of more peace of mind for you and your family.Long-term care planning doesn’t have to be daunting.With the right guidance and a clear strategy, you can face the future with more confidence.
1 Cost of Long-Term Care by State
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