Why Long-Term Care Planning Can’t Wait

We all like to avoid thinking about aging, but those stiff joints in the morning can be a gentle reminder: it’s coming. And while growing older is inevitable, how you experience those years is largely up to the planning you do today.

The truth is, your later years can be deeply meaningful, fulfilling, and joyful if you’ve taken steps to prepare. Long-term care planning is one of the most important parts of that preparation. Without a plan, many people find themselves relying on family or public programs, often in ways that don’t align with the lifestyle they imagined.

Unfortunately, far too many adults haven’t considered how they’ll handle the possibility of needing extended care. But the numbers are clear: around 70% of people will require some form of long-term care in their lifetime. And when the need arises, it can happen quickly and carry a steep price tag.

This is why long-term care planning is both a smart financial move and a gift to your future self and loved ones. It helps preserve your independence, shield your savings, and provide clarity in the face of uncertainty.

In this post, we break down what long-term care really means, highlight common mistakes people make when planning for it, and share key considerations for you to have the right coverage in place if care is needed down the road.

What Is Long-Term Care?

Long-term care refers to helping people perform activities of daily living (ADLs). There are six ADLs, and to qualify for long-term care, you need to be unable to complete at least two of them without assistance. 

These activities include bathing, eating, dressing, using the bathroom, transferring from one place to another (like a couch to a bed), and continence. If you aren’t able to do these on your own, you’ll need assistance. The question then becomes: How do I plan for this type of scenario? Do I pay for it out of pocket, purchase an insurance policy, or find some other alternative?

Before we get there, let’s discuss what not to do.

3 Long-Term Care Mistakes

The biggest mistake you can make is not being prepared, especially as it relates to how much long-term care could cost. Since the types of ailments any of us may have in the future vary greatly, the cost associated with care will also vary. For example, if you are able to live in your home but still need assistance with some ADLs, you could hire a home health aide to come assist you. In Texas, the median monthly cost for this service is around $5,892. 

However, if the type of care you need is more extensive and you need a private room in a nursing home facility, it would cost $7,300 per month. If you were to spend a year in the nursing home, it would cost a whopping $87,600—and some people spend multiple years in these types of facilities.

While we cannot predict your future health, we do know people who are aware of these potential future costs are better able to plan for these expenses, which helps them meet their retirement goals regardless of whether they need this care or not.

Another mistake we see far too often is incorrectly planning for LTC. While it might be a nice idea to assume your spouse or children will take care of you, it often doesn’t play out that way in reality. Your spouse will likely not be able to handle the physical demands of this care, and your kids will have their own lives and responsibilities to manage. Even if they want to, they won’t be able to give you the time and attention you will need at this stage of life. 

Lastly, even if you do purchase a long-term care policy, you need to understand what your policy would cover and what it wouldn’t. You cannot simply assume insurance will cover everything, because that may not be the case. While these policies can usually cover 100% of home healthcare expenses (as they are the most affordable), they may not be able to cover all expenses associated with assisted living and skilled nursing.

How to Cover Your Long-Term Care Needs

If you want to properly plan for your long-term care needs, I highly recommend you work with an independent financial advisor who can help you tailor a solution to your specific needs. There are a variety of options in the marketplace, and this isn’t a purchase you should make without proper due diligence.

There are a few options we like to consider when evaluating policies. First, we think a shared care rider on a traditional long-term care policy could be a great option. A shared care rider is for couples who own a policy together and allows them to share their maximum benefit amount. For instance, if a policy only allowed each spouse $250,000 of lifetime care, if one spouse hit that limit, then they would be left paying for everything above that amount out of pocket. With a shared care rider, once a spouse exceeded $250,000, they could then tap into their spouse’s lifetime benefit, allowing the couple to continue to benefit from their insurance policy. To lower your risk in the event of significant long-term care costs, consider this route.

Another option is a hybrid long-term care policy. Instead of owning a traditional long-term care policy (which only provides you a benefit if you need long-term care assistance), a hybrid policy can offer more flexibility. These types of policies combine long-term care benefits with life insurance benefits. If you end up needing long-term care help, these policies can be used for those purposes; but if you don’t need the help, they will provide a death benefit to your beneficiaries at your passing. For people who aren’t sure they’ll need to use their policy and are worried about not getting a benefit from it, this might be the solution.

Take the First Step in Long-Term Care Planning

Don’t wait for a health crisis to start thinking about your future care. Planning ahead for long-term healthcare can give you peace and help shield what you’ve worked so hard for.

At The Rosamond Financial Group, we take the time to understand your unique story so we can help you shape a future that reflects your values, goals, and lifestyle. Whether you’re years away or already thinking about next steps, we’re here to walk with you every step of the way.

Let’s build a plan that supports your life now, not just your later years. Call my office at 830-798-9400 or email solutions@rosamondfinancialgroup.com.

About Preston

Preston Rosamond is a financial advisor and the founder of The Rosamond Financial Group Wealth Management, LLC with over two decades of industry experience. He provides comprehensive wealth management and financial services to successful business owners, corporate executives, and affluent retirees who enjoy simplicity and seek a professional to help them pursue their goals. Preston personally serves his clients with an individual touch, a sincere heart, and his servant’s attitude is evident from the moment you meet him. Learn more about Preston or start the conversation about your finances with him by emailing solutions@rosamondfinancialgroup.com or schedule a call on his online calendar.