Long-term care can involve medical treatments or staying in a facility, such as a nursing home, for an extended period of time, typically 12 months or more. Proper long-term care planning is essential to ensure your financial security in retirement and also to reduce the burden on future family caregivers. There are many phases involved in long-term care planning, including considering long-term care insurance, elder care planning, and retirement planning.
When you're ready to find coverage to help with your long-term care planning, an independent insurance agent can help. They'll get you set up with the ideal long-term care insurance policy for your unique needs and goals. But first, use our guide to long-term care planning to learn more.
Key Takeaways - Long-Term Care Planning FAQs
- Long-term care can refer to ongoing medical treatment or stays in treatment facilities, such as nursing homes, for an extended period of time.
- Long-term care typically continues for 12 months or longer.
- It's typically recommended to start planning for long-term care in your 50s-70s.
- Long-term care insurance can help you cover the costs of many LTC services and facilities
- Working with an independent insurance agent is highly recommended, as they can help you weigh your LTC planning options and find the right coverage tailored to you.
Table of Contents
Q. What Is a Long-Term Care Plan?
Q. How Much Does Long-Term Care Cost?
Q. How Can I Pay for Long-Term Care?
Q. What Is Long-Term Care Insurance and How Does It Work?
Q. How Do Medicaid and Medicare Affect Long-Term Care Planning?
Q. When Should You Start Planning for Long-Term Care?
Q. How to Choose the Right Long-Term Care Plan
Q. What Are the Alternatives to Long-Term Care Insurance?
Q. How Can an Independent Insurance Agent Help?
What Is a Long-Term Care Plan?
A long-term care plan is a strategy you create to set yourself up for success with your health treatment and finances as you age and after retirement. This may involve looking into various long-term care facilities and treatments and getting set up with long-term care (LTC) insurance to protect your finances. The purpose of long-term care planning is to ensure you'll be able to get the treatment you need if you suffer a long-term illness, disability, or injury.
Common long-term care facilities and services include:
- Home care
- Home healthcare
- Assisted living
- Nursing homes
- Adult day cares
- Memory care
Having long-term care insurance can help you pay for any of the services and facilities listed above. Long-term care is typically not covered by Medicare or health insurance due to the duration of treatment needed.
How Much Does Long-Term Care Cost?
The cost of long-term care can range from just over $2,000 to well over $10,000 per month. The cost of your care can differ depending on your location, the length of treatment needed, and the level of care required. Here are some average costs for various common long-term care services this year.
Average monthly cost of long-term care services in 2026
| In-home care | Community and assisted living | Nursing home care |
|---|---|---|
| $6,292-$6,483 | $2,167 - $5,900 | $9,277 - $10,646 |
How Can I Pay for Long-Term Care?
There are several options when considering how to pay for long-term care, such as your personal savings and retirement fund. If your personal savings are insufficient to cover ongoing medical costs that will likely increase as you age, you can also consider long-term care insurance, which is designed to cover expenses from these services and facilities.
Medicare and other types of health insurance typically don't cover long-term care and limit coverage to short-term care. You might qualify for Medicaid, but you must have an income below a certain level to do so. Medicaid may also restrict coverage for long-term care.
You also have the option of looking into hybrid life insurance policies that offer long-term care coverage riders. An independent insurance agent can help you explore your options for long-term care planning.
What Is Long-Term Care Insurance and How Does It Work?
Long-term care insurance is a type of coverage that can pay for the expenses associated with ongoing medical care and extended stays in adult treatment facilities. There are many types of LTC insurance available, including traditional and hybrid policies. If you're employed, you might also be eligible to receive group coverage through your job.
Long-term care insurance can cover healthcare that continues for a set period of time, typically 12 months or longer. This coverage can help pay for the following:
- Medical care
- Daily living assistance
- Rehabilitation
- Social activities
- In-home care
- Nursing homes
- Assisted living facilities
- Memory care units
- Continuing care retirement communities
It's typically recommended to buy long-term care insurance in your 50s to get cheaper rates, but you can also purchase this coverage in your 60s. LTC insurance also offers tax-deduction benefits if you meet certain requirements.
How Do Medicaid and Medicare Affect Long-Term Care Planning?
Medicaid might not be a sufficient option for long-term care planning due to strict eligibility requirements and coverage limitations. While Medicaid's eligibility requirements vary by state, in North Carolina, someone between the ages of 19 and 64 can qualify for coverage if they have a total family income of $1,800 per month or less. Once they turn 65, the income threshold becomes $1,305 per month or less.
Medicaid can be used to help cover various LTC services and facilities for adults and seniors, including nursing homes, home care, adult foster care homes, and assisted living facilities. Medicare, however, is not designed to cover long-term care services at all, whether home healthcare or services rendered in a nursing home. As such, Medicare cannot be an effective part of long-term care planning.
When Should You Start Planning for Long-Term Care?
It's typically recommended to start planning for long-term care somewhere in your 50s-70s. However, the ideal age to lock down LTC coverage is in your 50s. The younger and healthier you are when you're shopping for coverage, the lower the premium rate you can secure. You might also have more options to choose from while you're still young and healthy. An independent insurance agent can help you with your long-term care strategy and find the right policy.
How to Choose the Right Long-Term Care Plan
When it comes to choosing the best long-term care insurance, start by comparing insurance companies in your area and their reputations. Independent insurance agents have access to several of the best long-term care insurance companies, so they're free to shop and compare long-term care policy options and quotes for you. Your agent can also help you find flexible coverage that offers inflation protection to help keep your premiums as level as possible over time.
What Are the Alternatives to Long-Term Care Insurance?
When planning for your future needs, you have several options aside from long-term care insurance, such as building a retirement fund or personal savings account. Health savings accounts and health insurance can also be used to pay for some medical costs, though health insurance can have limitations for LTC. Life insurance with long-term care riders can also be a good option. An independent insurance agent can help you weigh all your options for long-term care planning and coverage.
How Can an Independent Insurance Agent Help?
Independent insurance agents have access to multiple long-term care insurance companies, so they're free to shop and compare policy options and quotes for you to find the best deal. They'll make sure you walk away with a policy that includes all the coverage you need from a reputable carrier. And down the road, your agent can help you file LTC insurance claims and update your coverage when necessary.
Sources
https://www.carescout.com/cost-of-care
https://medicaid.ncdhhs.gov/eligibility
https://www.medicaidplanningassistance.org/medicaid-eligibility-north-carolina/
https://www.medicare.gov/coverage/long-term-care
https://www.carolinafep.com/blog/when-should-i-start-planning-for-long-term-care-needs.cfm
