Long-term care planning is a significant concern for individuals approaching retirement because it’s an expense most people aren’t prepared for. Trying to prepare for it with insurance isn’t cheap, and people often ask us if it’s worth it. In this episode of the Money Wisdom podcast, Jake Doser, CFP®, CPWA® and Nicholas J. Colantuono, CFP® tackle this pressing issue by answering a listener’s question about long-term care insurance and the options available.

As people age, the likelihood of needing long-term care—whether in an assisted living facility, nursing home, or through in-home care—significantly increases. However, many overlook the importance of planning for this expense, assuming either that they won’t need it or that their savings will suffice. The reality is that long-term care can be incredibly costly, especially in high-demand areas like the Northeast. Without proper planning, these expenses can deplete retirement savings quickly.

One of the listener’s main concerns was the high cost of long-term care insurance. Traditional policies operate like other forms of insurance—if you don’t use it, you don’t get any return on your payments. However, there are several alternative solutions available:

Traditional Long-Term Care Insurance – A use-it-or-lose-it policy that provides financial coverage for long-term care needs but can feel expensive if never utilized.

Hybrid Policies – These combine life insurance with long-term care benefits. If long-term care is needed, the policyholder can tap into the life insurance benefit; otherwise, it passes on to heirs.

Annuity-Based Options – Certain annuities offer long-term care benefits, allowing retirees to set aside funds for care while retaining flexibility.

Self-Insurance – Setting aside personal savings or investments specifically for long-term care expenses can provide flexibility, but it requires careful financial planning.

While long-term care planning is essential, it should not come at the expense of enjoying retirement. Having a well-rounded financial plan is key, so before committing to any policy, retirees should ensure that their everyday expenses and quality of life remain secure.

Here’s what we discuss in this episode:

0:00 – Today’s question

1:39 – Reason it’s expensive

3:39 – Long-term care options

6:48 – Where is long-term care on the priority list?

8:49 – Tax planning

Join us for our next financial workshop to learn about these strategies and more. Text WORKSHOP to 800-757-0436 to reserve your spot today.