Long-Term Care Insurance
Compass Health and Wealth is here to help you understand your long-term care options so you can plan confidently for the future.
Planning for Long-Term Care
Long-term care can help when illness, injury, or aging makes everyday activities difficult to manage independently. Care may be provided at home, in an assisted living community, or in a skilled nursing facility.
Because Medicare and traditional health insurance provide limited coverage for many long-term care needs, planning ahead can help protect your savings and preserve your choices.
Why Long-Term Care Planning Matters
Long-term care can become a significant retirement expense. Without a plan, these costs may need to be paid from your savings or covered with help from family members.
Planning ahead can help you:
- Protect retirement savings and other assets
- Reduce the financial burden on loved ones
- Maintain greater control over where you receive care
- Prepare for future needs with greater confidence
What Long-Term Care Insurance Covers
Coverage varies by policy, but long-term care insurance may help pay for:
- In-home care
- Assisted living
- Skilled nursing care
- Memory care
- Respite and other support services
Benefits, waiting periods, coverage limits, and inflation protection vary by policy.
Choosing the Right Long-Term Care Solution
Traditional long-term care insurance is one way to prepare, but it isn’t the only option. Life insurance and annuity-based solutions with long-term care benefits may also provide protection while supporting broader retirement and financial goals.
Compass Health and Wealth can help you compare your options and determine which approach fits your needs, assets, and retirement plans.
Long-Term Care Insurance FAQ
When should I buy long-term care insurance?
It’s often best to buy in your 50s or early 60s, before health issues develop and while premiums are more affordable.
What if I never need long-term care?
Some policies now include shared benefits, return-of-premium options, or can be combined with life insurance so the money isn't wasted.
Do Medicare and Medicaid pay for long-term care?
Medicare only covers limited short-term care. Medicaid may help, but only after you’ve spent down most of your savings and meet strict eligibility rules.
How much coverage do I need?
When it comes to long-term care needs, there truly isn’t a one-size-fits-all approach. It depends on where you live, how long you may need care, and your financial goals. We’ll help you make an informed estimate. It can help to consider these statistics:
- Someone turning 65 today has a roughly 70% chance of needing some type of long-term care services in their remaining years.
- Women tend to need care longer (3.7 years) than men (2.2 years).
- Of today’s 65 year-olds, 20% are likely to need long-term care for over 5 years.
Can my spouse and I get coverage together?
Yes, many couples purchase joint policies or linked benefits to protect each other and potentially save on premiums.