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The Importance of Long-Term Care Insurance

As we navigate through the busy routines of daily life, it’s easy to overlook our capacity to perform everyday tasks such as bathing, eating, and dressing. Yet, the likelihood of losing these fundamental abilities increases. This is where long-term care insurance comes in as we age.

Retirement savings and Social Security can help, but it’s vital not to leave yourself exposed and unprotected. Luckily, long-term care insurance helps. This distinct type of insurance, designed to aid seniors in covering services that may not be fully covered by regular health insurance, significantly contributes to ensuring you and your family are protected from the financial burden of extended care needs.

This article explores the importance of long-term care insurance, covering what it entails, the costs involved, coverage options, benefits, and considerations for purchasing a policy.

Understanding Long-Term Care

Long-term care encompasses a range of services designed to assist individuals with daily activities and medical needs over an extended period.

These activities of daily living (ADLs) may include help with bathing, dressing, eating, medication management, nursing care, and rehabilitation services. Long-term care may be provided in various settings, including nursing homes, assisted living facilities, or in the individual’s own home with the assistance of home health aides.

But why is planning for aging vital?

“Aging often entails a need for long-term care due to age-related ailments like Parkinson’s, congestive heart failure, dementia, and other chronic conditions. Statistics suggest that around 70 percent of seniors will require such care. Moreover, caregiving families may face financial strain, with one in five experiencing significant burdens,” says Joanne Farace, Senior Vice President, Investments at David Lerner Associates, Inc.

“Establishing a long-term care plan can mitigate these challenges, preserving family assets and relationships from the emotional toll of caregiving responsibilities.”

The Cost of Long-Term Care

The cost of long-term care services continues to rise and is unlikely to get cheaper.

According to recent estimates, the median cost of assisted living facilities stands at $162 per day, translating to $4,971 per month or $59,007 per year, contingent on your state of residence.

If these figures cause your heart to skip a beat, consider the implications for your retirement strategy if you haven’t adequately prepared for these possibilities. Long-term care costs can quickly deplete retirement savings and assets without adequate insurance coverage, leaving individuals vulnerable to financial hardship.

Coverage Options

Long-term care insurance provides financial protection against the high costs of extended care services.

Traditional long-term care insurance policies offer coverage for a range of long-term care expenses, including nursing home care, assisted living facilities, and home health care services.

Group Long-Term Care Insurance, available through employers or associations, offers a convenient avenue to obtain coverage. These policies typically feature simplified underwriting processes and may be more cost-effective compared to individual policies.

Hybrid policies combine long-term care benefits with life insurance or annuity products, providing additional flexibility and benefits.

Alternatively, some individuals opt for alternatives such as life insurance policies with long-term care riders, which offer benefits for both life insurance and long-term care needs.

Benefits of Long-Term Care Insurance

Long-term care insurance offers several benefits to policyholders and their families:

  • Firstly, it helps protect retirement savings and assets from being depleted by long-term care costs. Health insurance and Medicare, a common fallback for most seniors, can cover a wide range of services, but sometimes they may not provide sufficient coverage.
  • Long-term care insurance offers peace of mind for seniors and their families by providing a financial safety net. This assurance allows individuals to age with dignity, free from the constant concern about the financial impact of long-term care.
  • Long-term care insurance allows seniors to select their preferred care setting. Whether they opt for care in the comfort of their home or within an assisted living facility, policyholders can make choices that align with their preferences and needs.
  • Additionally, it ensures access to quality care and support services, allowing individuals to maintain their independence and dignity as they age.

Considerations for Purchasing Long-Term Care Insurance

When purchasing long-term care insurance, it’s essential to carefully consider several factors to ensure the policy meets your needs and preferences.

  • Secure long-term care insurance at a young age to enjoy lower premiums. This proactive strategy guarantees coverage while in good health, offering financial protection for future care needs.
  • Carefully examine and comprehend the policy terms, especially coverage limits, waiting periods, and service types. Hire a financial advisor to help verify that the policy suits your unique requirements and financial circumstances.
  • Compare premium costs from different insurers and consider the impact of inflation on long-term care costs over time.
  • Review eligibility requirements, such as age and health status, and explore options for adding inflation protection to your policy.


Planning for long-term care needs is an essential aspect of retirement planning, and long-term care insurance offers a valuable solution for protecting yourself and your loved ones.

By understanding the importance of long-term care insurance, exploring coverage options, and carefully considering policy features, individuals can safeguard their financial security and enjoy peace of mind in their golden years.

David Lerner Associates is dedicated to empowering families and assisting them in making informed decisions regarding the welfare of senior loved ones and family caregivers. Contact us today, and let’s work together to explore the options and strategies available to safeguard your retirement.

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.

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