Long-Term Care Insurance

Preserving Your Independence and Your Legacy

The Conversation We Need to Have 

If there is one topic that is difficult to discuss but absolutely vital for financial security, it is long-term care. No one likes to imagine a time when they might need help with daily activities like dressing, eating, or moving around. We all want to remain healthy and independent forever. However, ignoring the possibility of needing care does not make the risk go away. Statistics show that a significant portion of people over age 65 will require some form of long-term care services during their lives.

Here in El Paso, where family ties are incredibly strong, I often hear clients say, “My family will take care of me.” While that is a beautiful sentiment, the reality of providing full-time care is physically, emotionally, and financially exhausting for loved ones. Long-term care insurance isn’t just about paying for a nursing home; it is about giving your family the gift of being your children or your spouse, rather than being your full-time caregivers. It allows you to maintain control over how and where you receive care, protecting both your dignity and your family’s well-being.

Dispelling the Medicare Myth   

A major misconception I encounter is the belief that the government will pay for long-term care. It is crucial to understand that Medicare generally covers skilled medical care for short periods—like rehabilitation after a hip surgery—but it does   not   cover “custodial care,” which is the type of help most people need as they age. Medicaid is available, but only for those who have spent down almost all their assets and effectively impoverished themselves.

If you have worked hard to build a nest egg, own a home, or save for your heirs, relying on Medicaid is likely not your goal. Without insurance, the cost of home health aides, assisted living facilities, or nursing homes must come out of your pocket. These costs are rising every year and can quickly deplete the savings you intended to leave as a legacy. Long-term care insurance provides a dedicated pool of money to cover these expenses, shielding your retirement assets from being drained.

Options That Fit Your Preference 

Long-term care has evolved significantly. It is no longer a “one-size-fits-all” nursing home policy. Today, we focus on keeping you where you are most comfortable: your own home. Most modern policies cover home health care, adult day care, and assisted living, in addition to skilled nursing facilities. This flexibility means you can age in place, surrounded by your memories and your community, for as long as possible.

We can look at traditional long-term care policies, but we can also explore “hybrid” policies. These have become very popular because they solve the “use it or lose it” fear. Hybrid policies combine life insurance (or an annuity) with long-term care benefits. If you need care, the policy pays for it. If you never need care, the policy pays a death benefit to your beneficiaries. This ensures that your premium dollars are working for you no matter what happens, providing immense value and peace of mind.

Protecting the Caregiver   

I often tell my clients that long-term care insurance is really “spousal protection insurance.” If one spouse becomes ill and requires expensive care, the healthy spouse is often left watching their joint savings disappear. This can leave the surviving spouse in a precarious financial situation later in life. By having a policy in place, you ensure that the healthy spouse can maintain their standard of living and financial security, even while the other receives top-tier care.

Furthermore, it protects your children. Caring for an aging parent often falls on adult children who are in the peak of their own careers and raising their own families. By funding your own care, you relieve them of the difficult choice between their job, their children, and your needs. You allow them to supervise your care rather than having to perform the heavy lifting themselves.

Timing Is Everything   

The cost of long-term care insurance is based heavily on your age and your health at the time you apply. The best time to look into this coverage is when you are still healthy and active, typically in your 50s or early 60s. Waiting until a diagnosis occurs often means you can no longer qualify for coverage.

I invite you to sit down with me to look at the numbers. We will discuss your family health history, your current assets, and your preferences for future care. I will help you navigate the various features—like inflation protection, which ensures your daily benefit grows over time to keep up with rising healthcare costs. Together, we can design a plan that fits your budget and ensures that you remain the captain of your own ship, regardless of what health challenges the future may hold.