Skip to main content

    Long-Term Care Insurance

    Pay for nursing home, in-home care.

    What LTCI covers

    • Nursing home care.
    • Assisted living.
    • In-home care.
    • Adult day care.
    • Hospice care.
    • NOT covered by Medicare beyond 100 days.

    Cost

    • Best to buy in 50s-60s.
    • $2,500-$5,000/year typical at 60.
    • Premiums increase with age.
    • Pre-existing conditions raise cost.
    • Some can't qualify after 70.
    • Premiums can rise during policy.

    Hybrid life-LTC policies

    • Pays death benefit OR LTC.
    • Can't lose money if don't use.
    • Single premium ($75K+) typical.
    • Or 10-pay options.
    • More popular than traditional LTCI.
    • Talk to advisor about pros/cons.

    Self-insure option

    • Save what you'd pay in premiums.
    • $3,000/year × 30 years = significant.
    • Healthy seniors may never use LTCI.
    • If never use — premiums lost.
    • Self-insure if substantial savings.
    • Most American adults self-insure.

    Medicaid as backup

    • If savings depleted — Medicaid covers nursing home.
    • Must spend down assets first.
    • 5-year lookback on transfers.
    • Quality varies — best facilities private-pay.
    • Many seniors end on Medicaid.
    • Plan ahead with elder law attorney.

    When LTCI worth it

    • Net worth $300K-$1M (sweet spot).
    • Family history of dementia.
    • Want to leave inheritance.
    • Buy in your 50s-early 60s.
    • Healthy enough to qualify.
    • Can comfortably afford premiums.

    Talk to fee-only advisor

    LTCI is complex — premiums vary widely + insurers go out of business. Talk to a fee-only fiduciary advisor (not commission-based). They'll review your situation and recommend whether to buy traditional LTCI, hybrid policy, self-insure, or rely on Medicaid eventually. Often the right answer differs by individual situation.