May 22, 2025
When we think about planning for the future, one of the most important yet often overlooked considerations is long-term care (LTC). For nearly 30 years, as an oncology nurse, I have witnessed the challenges patients and families face when long-term care becomes necessary. While many people understand the importance of healthcare coverage during a medical crisis, fewer recognize that living out the ability to care for oneself can be just as critical; after all, a healthy lifestyle isn’t always a deterrent to challenges as we age.
There are several misconceptions that prevent people from exploring Long-Term Care Insurance (LTCI) options, and I want to take this opportunity to address those barriers. It’s important to understand that LTCI isn’t just an insurance product; it’s a compassionate and forward-thinking way to ensure that you and your loved ones are financially protected in the future.
Let’s take a look at some of the most common concerns people have about LTCI and debunk what may be keeping you from considering a policy that could save you and your family emotional and physical hardship and possibly financial devastation.
It is true that traditional long-term care insurance policies can be pricey, especially as you age. However, it's essential to view this expense not as a burden, but as an investment in your future comfort. The cost of long-term care services, whether in a nursing home, assisted living, or through home care, are often astronomical when paid out of pocket. In fact, recent statistics show long-term care costs for men to exceed $240,000 and $280,000 for women. Without insurance, many families find themselves scrambling to secure the funds to cover these expenses; quickly depleting savings or retirement accounts.
The notion here is to remember why we plan and save…for the peace of mind financial security provides. While paying now for long-term care might feel premature or stressful, the financial and emotional costs you avoid later, if you require long-term care, are far greater.
If the cost of traditional long-term care insurance is a concern, asset-based or hybrid long-term care policies offer a compelling solution. These policies can be funded with monthly, quarterly or annual payments until the age of 95 or until you need care. They can also be funded with a one-time transfer from a tax-qualified retirement account such as an IRA or 401K in which case the tax event for the transfer will be spread out over 10 years.These policies come with the unique advantage that if you are paying a premium, it will never increase and if or when you begin needing care, payments are no longer required for the life of the policy. This type of policy can help you avoid the rising costs associated with traditional long-term care policies and avoid the “use it or lose it” structure.
Many people believe that relying on family members or an aging spouse to provide care will be sufficient. After all, who wouldn’t want to be cared for by their loved ones? However, this often leads to unintended consequences that can put significant strain on both the caregiver and the person receiving care. Something unintentional and often missed is what comes next…who will be there to care for the widowed spouse or even the child who spent years providing care and possibly left with depleted financial resources.
Caregiver burden is a real issue. Family members, especially spouses, often experience physical, emotional, and financial stress when they take on the role of caregiver. Over time, the demands of caregiving can lead to burnout, resentment, and even health problems for the one providing care. This is not a position you want to put your loved ones in, especially when they may already be dealing with age-related challenges.
Additionally, caring for someone at home without insurance coverage can be costly. The financial strain on a family can be overwhelming when they need to hire home healthcare professionals, modify the home to accommodate needs, or take time off work to manage caregiving responsibilities.
LTCI not only provides quality options of where and how someone will receive care, it removes the burden and guilt of caregiving while possibly providing a death benefit for loved ones as designated policy beneficiaries, if care is never needed.
Many people assume that Medicaid will cover their long-term care expenses, but this is a common misconception. By design, it is a safety net for those who have no other means to pay for care, and it very commonly does not offer the level of comfort or flexibility that many people expect.
To qualify for Medicaid, you need to meet strict income and asset requirements. In most cases, to qualify, financial resources must be depleted to near poverty levels. Additionally, Medicaid may not cover the type of care you want, such as care in a private facility or home care, or it may offer lower-quality care options than what you could receive with long-term care insurance coverage.
As difficult as it is to think about growing old, planning ahead for long-term care is one of the most loving things you can do for your family. By securing a long-term care insurance policy, you ensure that your family will not be forced into a last-minute, financially devastating decision if and when the time comes for you to need care.
You are also giving your loved ones the gift of peace of mind; knowing that they won’t have to sacrifice their financial security, emotional well-being, or personal lives to care for you. The burden of caregiving is heavy, and it's often passed down to the children, spouse, or other family members who may feel guilty when they have no other choice but to say “no”. By planning ahead with a long-term care insurance policy, you take the weight off their shoulders and allow them to be your family and not your caregivers.
Long-term care insurance isn’t just about preparing for an uncertain future; it’s about ensuring that, if you need care, you can receive it without burdening your family emotionally or financially. Whether you choose a traditional policy or an asset-based one, the right insurance plan can provide a secure, stable future for you and your loved ones.
As an oncology nurse with decades of experience, I know how unpredictable life can be. One thing that has become clear is that planning ahead can make all the difference. By taking the time now to secure a long-term care insurance plan, you are making a loving, thoughtful decision to protect yourself and your family from the unexpected…something that truly matters.
If you’d like more information about long-term care insurance options, please contact us. We are here to help you navigate this important decision and ensure that you and your family are prepared for whatever the future may hold.
