MLK FinServ

Facebook Instagram

Long Term Care

What Is Long-Term Care Insurance? Planning Today for Peace of Mind Tomorrow

As we age, the chances of needing help with daily activities—like bathing, dressing, eating, or moving around—increase significantly. Whether due to aging, illness, or injury, long-term care (LTC) can become a critical part of life.

Yet, many families are unprepared for the high cost of this care. That’s where Long-Term Care Insurance comes in.

In this blog post, we’ll explain what long-term care is, what LTC insurance covers, and why planning early can protect your savings, your independence, and your loved ones.

What Is Long-Term Care?

Long-term care refers to a variety of services that help people who are no longer able to perform everyday tasks independently. These are known as Activities of Daily Living (ADLs) and include:

  • Bathing
  • Dressing
  • Eating
  • Transferring (e.g., getting in/out of a bed or chair)
  • Toileting
  • Continence

This care can be provided:

  • At home
  • In an assisted living facility
  • In a nursing home
  • Through adult day care services

What Is Long-Term Care Insurance?

Long-Term Care Insurance helps pay for the cost of care when you need assistance with ADLs or supervision due to a cognitive impairment like Alzheimer’s or dementia.

Rather than relying solely on personal savings or family support, LTC insurance provides financial assistance, helping preserve your assets, maintain your dignity, and reduce the burden on loved ones.

What It Covers:

      • In-home care services
      • Assisted living facilities
      • Skilled nursing homes
      • Memory care units
      • Adult day care
      • Home modifications and medical equipment (in some policies)

Why You Need LTC Insurance

According to government statistics, 70% of people aged 65+ will need some form of long-term care during their lifetime.

And here’s the reality:

  • The average cost of a private room in a nursing home is $100,000+ per year
  • Home care costs can exceed $5,000/month
  • Medicare does NOT cover long-term care beyond short-term rehabilitation
  • Medicaid only kicks in when you’ve spent down your assets

Without planning, these costs can quickly deplete your retirement savings.

When Should You Buy LTC Insurance?

The best time to purchase long-term care insurance is when you’re in your 50s or early 60s, while you’re still in good health. The younger and healthier you are:

  • The lower your premiums
  • The more likely you are to qualify
  • The greater your options for customization

Waiting until health issues arise could disqualify you or lead to significantly higher costs.

Types of Long-Term Care Insurance

Traditional LTC Insurance

  • Standalone policy
  • Pays a daily or monthly benefit for a set period
  • More affordable upfront but "use it or lose it" model

Hybrid Policies (Life + LTC)

  • Combines life insurance or annuities with LTC benefits
  • If you never use the LTC benefit, your heirs receive the life insurance death benefit
  • More flexible and popular with clients who want guaranteed value

How It Helps You and Your Family

With an LTC policy in place, you can:

  • Choose where you receive care (home, assisted living, etc.)
  • Protect your retirement savings and home
  • Avoid burdening your spouse or children financially or emotionally
  • Maintain control and dignity in later stages of life