What is long term care and how can I plan for it?

What is long-term care and how can I plan for it?


What Is Long-Term Care Insurance?

It is important to have a plan for how to handle the costs of long-term care as traditional Medicare policies will not cover the cost of skilled nursing care for long periods of time. AP Wealth can help project the potential cost of long-term care and help you decide if you should self-insure or consider a long-term care policy to partially insure.


Long-term care insurance (LTC) can cover the cost of care (nursing-home care, home-health care, personal or adult day care) when an individual is unable to perform at least two activities of daily living (ADLs).  Those activities of daily living include: bathing, feeding, dressing, mobility, or toileting. LTC insurance offers more flexibility and options than many public assistance programs.


There are many variables that play into a long-term care policy. Some of those variables include:


  • Your health and the impact on pricing.
  • The length and amount of coverage – how long benefits will last. 
  • You can purchase inflation protection to help cover the escalating costs of coverage and care.  Inflation for long-term care costs has historically been higher than core inflation.  
  • The elimination period will affect the cost of care.  The elimination period is the number of days that a person is responsible for their own costs before the insurance coverage kicks in. 
  • Many policies offer multiple riders that may or may not be a good fit. 


Do I need LTC? 

Many people reading this article may wonder if LTC insurance is right for them. Three common things that we discuss when we review long-term care are: 


  1. Do you have enough financial assets to pay of the projected long-term care costs of both spouses on your own?


If yes, you can consider self-insuring the risk.  However, if you are in good health the pricing on a long-term care policy may be favorable and a good way to Protect your hard-earned wealth.  AP Wealth can help you run that analysis, shop the policies, and make a decision.


  1. If you are financially independent, do you still lay awake at night and lose sleep thinking about the possibility of not being able to take care of yourself?


If yes, AP Wealth can help you put a plan in place for long-term care costs.  The key is having a plan that may or may not include using a long-term care insurance policy. 


  1. Additionally, I tell people to have a conversation with their children. 


Their children are the ones who are going to have to shoulder the burden, or make decisions financially when assets are not available to provide for long-term care.  It is very important to have a plan and communicate with your loved ones so they are not stuck in between a rock and hard place.



The most important thing is to have a plan and communicate that plan with your loved ones.  Our advisors help clients with this on a regular basis, so please do not hesitate to reach out to discuss your long-term care plan with our team! You can call us at (706) 364-4281 or email at [email protected] 


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