LTC Overview


Long term care insurance is an often neglected part of overall financial planning.  Many financial professionals agree the biggest risk to one’s savings is the unexpected need for long term care.  If we live to age 65, 60% of us may require long term care (Conning & Company, Long Term Care Insurance, Baby Boom or Bust, 1999) preferably in our own homes, but possibly in an assisted living facility or even nursing home.

  • 65% of respondents in a national survey of adults aged 18 and older (Our Family, Our Future: The Heart of Long Term Planning, by AgeWave, November 2010) said the most important reason for them for long term care planning is “to not have to be a burden on my family.” Next most common answers were “to be able to afford quality care in the setting I choose and “to protect my spouse’s/loved ones’ quality of life and future security”.
  • 65% of long term care insurance claims are paid to women; 35% are paid to men. (2010 Long Term Care Insurance Sourcebook, AALTCI)
  • The purchase of long term care insurance offers tax advantages for business owners and self-employed
  • Partnership long term care plans available in most states can protect assets from Medicaid depletion

Ask yourself these questions:

1.  Do you know someone or do you have a relative or friend receiving care?

2. What would happen if you were faced with an additional, ongoing monthly expense of $8,000-$12,000 due to the cost of long term care for a loved one?

3. Has an employee’s effectiveness been hampered by spending work time caring for a loved one?

Basically, we can do all the right things in terms of investing wisely, protecting our families with life insurance when we pass, etc., but if we do not address the possibility of long term care, all of our other planning can be for naught.

The annual cost of care can easily be $100,000 or more.  It does not take long to deplete $1,000,000 of assets or more should one (or even both!) spouses need care.

The first steps to take to learn more about long term care insurance is to meet with our long term care specialist, Carol Einhorn.  Carol will educate you about this complicated and often misunderstood topic and provide options for you to consider either for now or the future.  Carol authors an annual article with nationally recognized estate planning attorney Stephan Leimberg: Long Term Care Insurance: The Ten Most Commonly Ask Questions.