Long-Term Care Insurance
LTCInsurance.com is a resource that helps people understand long-term care insurance, decide whether it makes sense for them, and find appropriate coverage.
Here you can learn how long-term care insurance works, how much coverage you may need, what you may qualify for, and what to expect when you apply.
I’m Andy Stroman, CLTC®, an independent long-term care insurance specialist. If you would rather talk through your situation, I can help with that too.
Why long-term care becomes a family and financial problem
If you live a long life, it’s likely that at some point you will start needing help getting through your day safely.
Everyday tasks like getting dressed, bathing, using the bathroom, eating, or getting around the house may become too difficult or dangerous to do on your own. Or you may experience cognitive decline, such as Alzheimer’s or dementia, and need someone there continually just to keep you safe.
When this happens, a spouse or adult child often becomes the primary caregiver.
That can work for a while. But caregiving can become physically and mentally exhausting, especially when the need lasts for months or years. Eventually, many families need professional help.
Professional care can be provided at home or somewhere else, such as an assisted living facility, memory care facility, or nursing home. Family can stay involved and help manage the care without having to provide all of the hands-on care themselves.
If you understand that professional care may eventually be necessary, it makes sense to think ahead about two things:
Who is going to provide the care?
Family members are often willing to help, and most people would probably want their family involved. But there is a difference between helping manage your care and being responsible for providing it every day.
A spouse or adult child may not be physically able to provide the care you need, may have a job and children of their own, or may simply become overwhelmed as your needs increase. Planning ahead gives your family more options to bring in professional help when it is needed.
How will the care be paid for?
Professional caregiving can be expensive, especially when care is needed for several years. Medicare generally does not pay for ongoing long-term care, and people with income or assets to protect usually do not want to rely on Medicaid.
You may be comfortable paying all care expenses from your income and assets. You may prefer to have insurance cover some or most of the cost. Either way, if professional care is likely to be part of your plan, you need to decide in advance where the money to pay for it will come from.
How to decide how much long-term care insurance you need
Start by looking at the cost of care where you live and the income and assets you would have available to pay for it.
Then decide how much of that potential expense you would be comfortable paying yourself and how much you would rather have insurance cover.
Some people have enough income and assets that they are comfortable paying the entire cost of care themselves. Others would rather insure some, most, or even all of the potential cost.
Some may only want protection against an unusually long or expensive care need. Others could afford to self-fund but would rather have a separate source of money available for care so their other assets and income can continue being used as intended.
The amount of coverage you choose should reflect the portion of the potential cost you would rather not have to pay from your own income and assets.
If you want help working through that exercise, I can review your situation with you, estimate the cost of care where you live, and help you determine what amount of coverage makes sense before we start looking at policies.
How I can help
1. Review your situation
We start with the exercise above: what care costs where you live, what financial resources you have available, and how much of the potential cost you would prefer to insure.
This gives us a target before we start looking at insurance products.
2. Find out what you may qualify for
Long-term care insurance is medically underwritten, and different insurance companies look at health conditions differently.
I review your health history and medications before recommending where to apply. When it makes sense, I can also check with insurance companies informally before submitting an application.
This helps narrow the field to options you have a realistic chance of qualifying for.
3. Compare the available options
Once we know how much coverage you want and what you may qualify for, we can look at the policies that fit.
Depending on your situation, the choices may include traditional long-term care insurance or other types of coverage.
I’ll explain the differences between the policies, what they cover, how benefits are paid, what they cost, and the tradeoffs involved.
4. Apply for coverage
If you decide to move forward, I help you complete the application and work through the underwriting process.
The insurance company may review medical records, conduct a phone interview, or ask for additional information before making a decision.
5. Review the insurance company’s offer
Once underwriting is complete, we review the offer together.
Sometimes the policy is approved exactly as applied for. In other cases, the insurance company may offer different benefits or pricing.
You can then decide whether the offer still makes sense before putting the policy in force.
6. Put the policy in place
If you accept the coverage, we complete the remaining requirements and fund the policy.
I’ll also make sure you understand what you bought, how the benefits work, and what your family should know about the policy if you ever need to use it.
Long-term care insurance is only one part of the plan
Insurance helps answer an important question: how will professional care be paid for?
There are other things you may need to address as well.
An attorney can help put powers of attorney, healthcare directives, and other legal documents in place. A financial advisor or CPA can account for possible care expenses in your retirement and tax planning. If you eventually need care, a geriatric care manager can help assess your needs and find appropriate care providers.
Your family should also understand what you want before they are put in a position to make decisions for you.
My role is the insurance piece. I help you decide whether transferring some of the financial risk to an insurance company makes sense and, if it does, help you put the coverage in place.
About Andy Stroman, CLTC®
I’m an independent long-term care insurance specialist based in Marietta, Georgia. I work with clients in multiple states by phone and offer in-person consultations at my office by appointment.
I help people understand how long-term care insurance works, decide whether it makes sense for them, determine how much coverage they want, and compare the companies and policies available to them.
Because I’m independent, I’m not limited to one insurance company or one type of policy.
Long-Term Care Insurance FAQs
What does long-term care insurance cost?
Premiums depend on age, health, marital or partner status, state of residence, monthly benefit, benefit duration, inflation protection, and product type. Traditional insurance often provides the most long-term care benefit for the initial premium. Hybrid policies usually require more money in exchange for guarantees, cash value, return-of-premium provisions, or a death benefit.
What does long-term care insurance cover?
Coverage may include home care, adult day services, assisted living, memory care, hospice services, care coordination, and nursing-home care. The exact services and eligible providers are defined by the policy. Some policies reimburse documented expenses, while others pay an indemnity or cash benefit after the insured qualifies.
When should I buy long-term care insurance?
Many people begin comparing coverage between ages 50 and 65. The best buying window usually occurs while you remain healthy enough to qualify and can fit the premium into a sustainable retirement budget. Waiting creates an insurability risk because a diagnosis, fall, surgery, medication change, or cognitive concern may reduce the available options.
Does Medicare cover long-term care?
Medicare covers limited skilled nursing and rehabilitative care under specific conditions. Ongoing custodial care at home, in assisted living, or in a nursing facility generally falls outside Medicare coverage. Custodial care includes help with daily activities and supervision caused by cognitive impairment.
Is long-term care insurance tax deductible?
Premiums for tax-qualified traditional long-term care insurance may count as medical expenses up to age-based limits, subject to federal tax rules. Business owners, employers, and employees may receive different treatment depending on how coverage is structured. Premiums for the life insurance or annuity portion of a linked-benefit policy generally are not deductible, although separately identified qualified long-term care charges may receive favorable treatment in some arrangements.
Is long-term care insurance worth it?
Long-term care insurance tends to fit people who want dedicated care money, protection for a spouse’s retirement income, less reliance on adult children, and a clearer plan for obtaining professional help. The premium must remain affordable under conservative assumptions. Deliberate self-funding may suit people who have enough liquid assets and are comfortable retaining the full financial risk.
What is the difference between traditional and hybrid long-term care insurance?
Traditional long-term care insurance is designed primarily to pay for care. It usually offers strong benefit leverage and broad design flexibility, although premiums may increase and unused benefits typically produce no cash value or death benefit.
Hybrid coverage combines long-term care benefits with life insurance or an annuity. It commonly provides guaranteed premiums, a death benefit, cash value, or return-of-premium features, while requiring a larger premium or asset commitment.
Can I qualify if I have health problems?
Possibly. Underwriting rules vary by carrier and product category. Controlled conditions may still qualify, while recent falls, progressive neurological disorders, cognitive concerns, certain cancers, pending procedures, or current care needs can create significant difficulty. A confidential health pre-screen can identify realistic options before a formal application is submitted.
Want help figuring out your options?
We can start by looking at what care costs where you live, what you could reasonably pay yourself, and how much of the potential cost you would rather insure.
If long-term care insurance makes sense, I can then help you find out what you may qualify for and compare the available options.