As more people live longer, planning for long-term care has become an essential part of financial wellness. Whether you wish to remain at home or reduce the caregiving burden on your family, having a plan in place may make a significant difference.

Early Planning for Future Care

At some point, you or a loved one may need long-term. According to recent studies, 70% of people over 65 will require some form of long-term care¹. However, many are unaware that Medicare or traditional health insurance offers limited coverage for these services.

Planning ahead may allow you to make choices about where and how you receive care, whether at home, in an assisted living facility, or elsewhere. Early planning may also help protect your financial assets, reducing the likelihood that unexpected expenses will impact your retirement savings.

Exploring Long-Term Care Options

There are various ways to plan for long-term care expenses, ranging from private savings to insurance options. Here are some common solutions:

• Traditional Long-Term Care Insurance: This type of policy is designed to cover long-term care costs at home or in a care facility. The premiums may be flexible, but unlike other insurance products, this is typically a “use-it-or-lose-it” option.
• Life Insurance with a Long-Term Care Rider: For those looking for more flexibility, combining life insurance with a long-term care rider allows access to a portion of the death benefit for long-term care expenses. If long-term care is not needed, the remaining benefit is passed on to beneficiaries.
• Hybrid Life and Long-Term Care Policies: These policies combine life insurance and long-term care in a single product. They often include guaranteed premiums, providing cost stability, and the policyholder’s heirs may still receive a death benefit if long-term care is not required².

Caring for Family

Have you ever thought about who would take care of you if you needed it? Some families think they’ll be the ones caring for their loved ones as they age. However, this may create emotional and financial stress. Studies show that 64% of people receiving care rely solely on unpaid family members³, which may lead to lost wages, diminished savings, and increased stress for caregivers. Financial products like cash indemnity long-term care insurance may alleviate this burden by offering financial support, even if care is provided by unlicensed or informal caregivers⁴.

Benefits of Planning Ahead

Long-term care costs are increasing rapidly. By 2042, the annual cost for a home health aide is projected to exceed $130,000⁵. Planning ahead may allow you to explore different care options and help protect your family from financial strain.

Insurance products and services offered through LaSalle St. Insurance Services.
1. United States Department of Health and Human Services, “Who Needs Care?” (2022).
2. Nationwide guide to long-term care solutions, LAM-3362AO (2023).
3. Nationwide Retirement Institute Caregiver Crisis whitepaper (2022).
4. Nationwide whitepaper on long-term care benefit models, LAM-5137AO (2023).
5. Genworth Cost of Care Survey, May 2023.