Long Term Care Insurance

Here's an uncomfortable truth: there's a pretty good chance you're going to need help taking care of yourself when you get older. Maybe it's help with bathing, getting dressed, or just getting around the house. Maybe it's memory care. Maybe it's full-time nursing care.

And here's the kicker - Medicare doesn't cover most of it. Neither does regular health insurance. So who pays for it? Usually, it's either you, your family, or you spend down everything you own until you qualify for Medicaid.

That's where long-term care insurance comes in.

What Are We Actually Talking About Here?

Long-term care isn't about fixing you when you're sick - it's about helping you live when you can't fully take care of yourself anymore. We're talking about:

• Help with daily activities like bathing, dressing, eating

• Home health aides who come to your house

• Adult day care programs

• Assisted living facilities

• Memory care for dementia or Alzheimer's

• Nursing home care

The stuff that keeps you safe and comfortable when age or illness makes independence difficult.

The Numbers You Need to Know

About 70% of people over 65 will need some form of long-term care during their lifetime. The average stay in a nursing home is about 2.5 years, but some people need care for much longer.

Here's what it costs (and these numbers go up every year):

• Home health aide: $25-30 per hour

• Adult day care: $75-100 per day

• Assisted living: $4,000-6,000 per month

• Nursing home: $8,000-12,000 per month

Do the math. Even a couple years of care can easily cost $200,000 or more. That's enough to wipe out most people's retirement savings.

When Should You Buy This Stuff?

The sweet spot is usually in your 50s or early 60s. You're still healthy enough to qualify, but old enough that the premiums aren't completely outrageous.

Wait too long, and you might not be able to get coverage at all. Health issues can make you uninsurable, and premiums get expensive fast as you age.

Buy too early, and you're paying premiums for decades before you might need benefits.

What Types of Policies Are Out There?

Traditional long-term care insurance: You pay premiums, and if you need care, it pays benefits. If you never need care, you get nothing back. Premiums can go up over time.

Hybrid life insurance with LTC benefits: More expensive upfront, but if you don't use the long-term care benefits, your beneficiaries get a death benefit. Some people like this because they feel like they're not "wasting" money.

Hybrid annuities with LTC benefits: Similar idea, but with an annuity base. You can access your money for retirement income or long-term care.

The Reality Check

Long-term care insurance isn't cheap, and it's not perfect. Premiums can increase over the years (though there are limits). The underwriting process asks detailed questions about your health. And some companies have gotten out of the business entirely, leaving policyholders scrambling.

But here's what I tell people: if you have assets worth protecting and can afford the premiums without struggling, it's probably worth considering. If you're barely making ends meet now, there might be better ways to spend your money.

How I Can Help

I work with several insurance companies that still write good long-term care policies. Here's what we'll figure out together:

Whether you actually need this: Based on your financial situation, family support, and other assets.

How much coverage makes sense: Daily benefit amounts, benefit periods, and elimination periods that fit your budget.

Which type of policy works best: Traditional LTC, hybrid life insurance, or hybrid annuity - they all have pros and cons.

Timing: When to apply based on your age, health, and financial situation.