Long Term Care
Sad but true: Life is not forever
We try to ignore it, but the sad fact is, we age. Our bodies betray us. We become frail.
Yet a startlingly large number of people do not have Long Term Care insurance. That’s called “Denial.”
The shock often comes in your 60’s or 70’s, when you realize the time for Long Term Care is rapidly approaching, and you discover how expensive it’s become.
Let’s talk through options now—coverage types, benefit periods, elimination periods, inflation riders, and how LTC integrates with your retirement income plan.
Facing the Reality of Aging
It’s natural to put off thinking about aging and the challenges it can bring. But our health changes over time, and many of us will eventually need assistance with daily living. Planning early helps ensure that when the time comes, you’re prepared—financially, emotionally, and with greater peace of mind.
Why Plan Sooner?
- Lower cost & easier approval: Health underwriting is generally more favorable at younger ages.
- More choices: Traditional LTC, hybrid life/LTC, and annuities with LTC riders.
- Asset & income protection: Help preserve savings and provide flexibility for loved ones.
- Care on your terms: Plan for care at home, assisted living, or nursing care.
Common Misconceptions
- “I won’t need it.” Many retirees need some level of support with daily activities.
- “Medicare will pay.” Medicare is limited for long-term custodial care; LTC planning fills the gap.
- “I’ll self-insure.” Feasible for some, but may strain portfolios—especially in market downturns.
Where Care Happens
- In-home care & care coordination
- Assisted living & memory care
- Skilled nursing facilities (as needed)
Ways to Prepare
- Traditional Long-Term Care insurance
- Hybrid life insurance with LTC benefits
- Annuities with LTC riders
- Budgeting & earmarked savings
Your First Steps
In-Home Care (Typical Costs)
- National average ~$33/hour
- California typical range: $32–$40/hour
- 24-hour care: $20,000–$27,000/month (≈ $240,000+/year)
- $1M in benefits may cover roughly 3–4 years of full-time in-home care
Assisted Living (Typical Costs)
- National median: ~$5,350/month (≈ $178/day)
- California average: $5,250–$6,250/month (≈ $63k–$75k/year)
- $500k in benefits could provide roughly 7–8 years of coverage (varies by location & care level)
Why It Matters
Long-term care is not one-size-fits-all. Needs can change suddenly—from part-time help at home to full-time care or assisted living. Having the right coverage in place ensures flexibility and peace of mind for you and your family.
Note: Costs and availability vary by state, carrier, and care setting, and they change over time. This block is general education, not financial, tax, or legal advice.
A Look Into Our Process
When establishing an effective retirement plan, we begin by assessing your willingness to engage in the funding process for your retirement. Following this, we will conduct a thorough fact-finding session and meet with you to gain a comprehensive understanding of your current financial situation, along with your unique goals and needs. This allows us to create a retirement plan that is customized specifically for you.
Readiness & Goals: Align on participation, priorities, and the outcomes you want from planning.
Fact-Finding & Fit: We review your current financial picture and clarify needs to tailor your plan.
Plan & Projection: We prepare a retirement income projection that accounts for all relevant sources.
Straightforward Option (when appropriate): If a full projection isn’t necessary, we may propose a simple allocation of a portion of assets to generate supplemental income while emphasizing safety and growth.