When you are young and healthy, it is difficult to imagine a day when you may need long-term care (LTC). This may include receiving help at home with basic daily activities such as bathing, dressing, and eating; community services like adult day care and transportation; or ongoing care in a nursing home, assisted living residence, or other facility. The absence of an LTC plan often results in the need to rely on family members or friends to provide this help, which, in many cases, they are happy to do for you.

Approximately 53 million individuals annually provide a broad range of assistance to support the health, quality of life, and independence of a person close to them who needs help as they age or due to a disability or chronic health condition.¹ Not only do they offer physical, emotional, and logistical support, but caregivers also often provide companionship, administer medication, assist with daily activities, and manage medical appointments.

However, it’s important to consider the significant burden this responsibility may place on caregivers. These include:

Physical health — Caregivers can suffer from physical strain, exhaustion, and potential injuries due to lifting, transferring, and providing personal care.

Mental health — Caregivers frequently face high levels of stress, guilt, and depression due to the emotional toll of witnessing a loved one’s decline in health and quality of life, and managing their care needs.

Financial strain — Caregivers may experience financial difficulties due to the costs associated with this responsibility, such as medical expenses, home modifications, and loss of income if they need to reduce work hours and/or resign from their jobs.

Benefits of LTC Planning

The best time to think about long-term care is before you need it. Planning for the possibility of long-term care gives you and your family time to learn about services available in your community and what they cost. It also allows you to make important decisions while you are still able.² Having a plan in place can make a difference in life as you age, as it may help make complex care decisions easier and provide peace of mind. It can also alleviate the caregiving responsibility from family or loved ones.

As you develop your long-term care plan, it helps to understand your options. For example, one-third of today's 65-year-olds may never need long-term care support, but 20% will need it for longer than five years, and seven out of 10 people will need long-term care during their lifetime.³ How you will pay for this care is critical to your plan, as these expenses can quickly deplete savings and assets. Unfortunately, Medicare does not cover long-term care unless you need other types of care, such as short-term nursing or hospital stays, and recipients have fewer choices over the care they receive.

One option is obtaining LTC insurance to help pay for health and support services. An LTC insurance policy provides more flexibility and care choices; you have more control over the type of care you’ll receive and where you’ll receive it.

Another important benefit of LTC insurance is that it provides access to qualified, professional care appropriate for your needs. While you may be able to get by with unpaid care from family members and others, they often may not have the expertise and availability to provide full-time, professional care if and when you require it.

In addition to traditional LTC insurance policies, newer hybrid policies are designed to provide a benefit even in the event the policyholder does not file a claim. This solution lets you to leverage your death benefit to pay for long-term care.⁴ Discuss how you will cover the cost of care and types of insurance that can help you and your family plan for an unexpected event with your Financial Advisor.