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Important Things To Know About Long-Term Care Planning

Important Things To Know About Long-Term Care Planning

February 18, 2021

There are certain things you don’t want to gamble with in life, like your retirement savings, how you raise your kids, or your health, just to name a few. But there is one risk you may not even be aware that you’re taking, and that’s neglecting to put a long-term care plan in place. For some, the thought of sky-high bills and burdened family members is enough to motivate them to invest in some sort of long-term care insurance. For others, you just can’t justify the hefty premiums and the likelihood of needing long-term care seems far off. Regardless of which camp you’re in, here are 5 surprising things you should know about long-term care (and the impact it could have on your nest egg later in life).

1. Most Of Us Will Need Long-Term Care At Some Point

About 7 out of 10 people will need some form of long-term care during their lifetimes. While the amount of time for which the average person will require help ranges, it is estimated that 69% of people will need care for 3 years. (1) Regardless of present health or circumstances, most of us will need some form of long-term care down the road. 

2. Medicare Typically Doesn’t Pay For Long-Term Care

It may shock you to know that Medicare doesn’t cover typical long-term care expenses. Medicare is medical insurance. It covers acute care expenses like doctors’ visits, prescription drugs, hospital stays, and short stays in a skilled nursing facility in special circumstances. Medicare will not cover basic long-term care needs or facility costs. Basics such as assistance with daily personal care needs like bathing, feeding, getting dressed, and supervising are not covered by Medicare. (2)  

3. It’s Challenging To Pay For Rising Long-Term Care Expenses Without Insurance

Long-term care costs are expensive. The average national monthly cost for an in-home health aide is $4,385, assisted living facilities cost $4,051 a month on average, while a private room in a skilled care facility will cost you around $8,517. (3) With costs this high, it’s no wonder that long-term care expenses often result in financial plan failures, even for those with resources. Over 32% of households with a $1 million net worth are materially impacted by long-term care costs. (4)

4. Long-Term Care Insurance Covers More Than You Think

Many people think long-term care insurance is only for traditional nursing homes or skilled care facilities. Most policies today cover much more. Home health aides, assisted living facilities, and retirement communities are often covered with today’s long-term care plans. Some plans include coverage for professional help should you need assistance with eating, showering, getting dressed, and using the bathroom.

5. Women Need Long-Term Care Insurance More Than Men

Women can expect to have higher long-term care costs than men simply because they tend to live longer. (5) When a husband is sick, for example, the wife often steps up to care for him until his passing. When the wife finds herself in the same situation years later, she typically doesn’t have a spouse to offer the same care. As a result, this burden falls on children or extended family members. Long-term care insurance can provide the resources needed to prevent being a burden and allow you to choose how, when, and where you receive care.

We Can Help You

No matter what your health looks like today, statistics show that most people will need some form of long-term care during their lifetimes. And that means it is critical to have a plan to cover these potentially significant costs. This can seem daunting, especially when coupled with the need for an adequate retirement income. 

We at Security Financial Management know you don’t need yet another thing keeping you up at night, and we want to help relieve some of your worries. We focus on retirement income strategies and reducing the chance that a long-term care stay will eat away at your nest egg. If you’d like to see how we can help, reach out today to schedule a call or contact us at

About Security Financial Management

Security Financial Management is an independent financial services firm dedicated to delivering exceptional service built on reliability and trust. With 3 locations in Central Florida and 1 in Rochester, MN, SFM has been partnering with clients for over 25 years, providing comprehensive financial planning. To learn more about Security Financial Management, connect with them on LinkedIn.

Advisory services offered through Investment Advisors, a division of ProEquities, Inc., a Registered Investment Advisor. Securities offered through ProEquities, Inc., a Registered Broker-Dealer, Member, FINRA & SIPC.

Security Financial Management is independent of ProEquities, Inc.