Long-Term Care Insurance: A Practical Step Toward Protecting Your Future

World Day for Grandparents and the Elderly is an opportunity to reflect on the support systems we build for older adults. As people live longer, the need for long-term care becomes a common part of the aging experience.

Yet many families wait until a crisis hits before considering how to manage it. This is often because the topic feels overwhelming, emotionally difficult, or simply not urgent until care is needed.

Whether you’re planning for your own retirement or helping a loved one prepare, long-term care insurance offers a proactive solution. It can reduce financial strain, protect family relationships, and give you more control over how and where care is delivered. With rising life expectancy and the growing costs of extended care, it’s an option worth examining carefully.

Understanding the Risk of Needing Care

The idea of needing long-term care might feel distant, but the reality is much closer than most people think. Nearly 70 percent of Americans aged 65 or older will require some form of long-term care during their lifetime. That care may start with light in-home assistance and progress to more intensive services such as full-time nursing or memory care.

Most standard health insurance policies and Medicare do not cover this type of care. They focus on acute medical treatment—not help with bathing, dressing, or medication management. That gap can leave families scrambling for solutions. In the absence of insurance, adult children often take on caregiving roles, reduce work hours, or dip into their own savings to cover costs.

The numbers are eye-opening. A home health aide can cost over $77,000 annually. Assisted living facilities often start at around $6,000 per month, while a semi-private room in a skilled nursing facility may exceed $9,000. Planning ahead for these costs will help prepare you for the time when the care is needed.

“These expenses, compounded over several years, can quickly erode retirement savings, especially if a couple needs care at the same time,” advises Darren Nomberg, Senior Vice President, Investments at David Lerner Associates, Inc.

“Long-term care insurance helps mitigate this risk by providing funds specifically for these types of services. It gives you more options so you’re not limited by what you can pay out of pocket or what public benefits might provide. Instead of reacting to a health issue, you’re ready with a plan.”

What Long-Term Care Insurance Covers

Long-term care insurance covers services that support everyday living when a chronic illness, disability, or cognitive impairment makes independent living difficult. This is distinct from medical care—it focuses on quality of life.

Typical benefits include:

• In-home care from licensed or certified caregivers
• Residential care in assisted living or memory care facilities
• Skilled nursing facility stays
• Adult day care centers
• Respite care for family caregivers
• Care coordination and planning support

Some policies also offer optional benefits, such as:

• Home modification reimbursements (e.g., wheelchair ramps or safety rails)
• Support for caregiver training
• International coverage if care is needed abroad

Coverage generally begins once you’re unable to perform a set number of “activities of daily living” (ADLs), such as bathing, eating, or transferring from a bed to a chair. Most policies include a waiting period (typically between 30 and 90 days) before benefits start. After this period, your policy will begin paying a daily or monthly benefit up to your chosen limit.

There are trade-offs between premiums, benefit amounts, and duration of coverage. You can choose shorter-term plans that cover two or three years of care, or opt for longer-term coverage that can stretch for five years or more. Inflation protection is also available and recommended, especially for those purchasing policies decades before they expect to need care.

Who Should Consider Coverage (and When)?

Long-term care insurance isn’t one-size-fits-all. It’s most effective for people who are still in good health and looking ahead, typically between ages 50 and 65. Applying earlier can lock in lower premiums and greater flexibility. Premiums are generally determined by your age at application, current health status, and the level of benefits selected. Waiting too long, especially after a major diagnosis, may lead to higher costs or denial of coverage.

This type of insurance may be right for you if:

• You want to preserve retirement savings and avoid selling assets to pay for care
• You prefer to choose where and how you receive care, rather than rely solely on Medicaid or other public benefits
• You don’t have family nearby or want to limit the caregiving burden on children
• You’re single or have a partner who may not be able to provide full-time support

For couples, a shared policy can provide added value, allowing either spouse to use the benefits. And for those who are concerned about paying premiums for a benefit they may never use, hybrid policies are available. These combine long-term care coverage with a life insurance component, ensuring that benefits are paid out in some form.

How an Investment Counselor Can Help You Choose Wisely

Long-term care insurance is a long-term decision. With a wide range of policy types, benefit options, and underwriting requirements, the guidance of a knowledgeable professional can help you avoid costly mistakes.

At David Lerner Associates, our investment counselors provide one-on-one support to help you:

• Assess whether long-term care insurance is appropriate for your situation
• Understand how a policy complements your income, investments, and health benefits
• Evaluate the right amount of coverage based on projected care costs
• Select optional features, such as inflation protection or joint coverage for spouses
• Fit premium payments into your current budget without sacrificing other goals

Our approach integrates long-term care coverage with your broader financial goals, ensuring the solution works in harmony with your overall retirement strategy.

We also help you compare traditional and hybrid policies and review how each fits into your larger retirement strategy. Because our counselors look at your full financial landscape, we can identify trade-offs and opportunities others might miss.

Conclusion

Long-term care is something many of us will need—but few are fully prepared to fund.

World Day for Grandparents and the Elderly is a good reminder that aging with dignity requires preparation. Thinking ahead, having honest conversations, and making informed decisions can ease future stress for both you and those who care about you. A good place to start is by reviewing your current insurance options or scheduling time with a trusted professional to assess your long-term care needs.

If you’re wondering how long-term care insurance fits into your retirement plan, now is a great time to explore your options. Connect with David Lerner Associates to get a clear, personalized perspective. We’ll help you weigh the costs, understand the coverage, and make a choice that reflects your values and priorities for the years ahead.

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Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.