Long-Term Care Is One of the Biggest Retirement Risks
It’s not fun to think about, but the reality is clear: as we age, the chances of needing long-term care go up. Whether it’s home care, assisted living, or a nursing facility, the costs can be overwhelming—and they’re not covered by traditional health insurance or Medicare.
Without a plan, long-term care expenses can wipe out your retirement savings, force you to sell assets, or leave your spouse financially exposed. The good news? With smart planning, you can protect your wealth and still get the care you may someday need.
What Is Long-Term Care?
Long-term care refers to services that help people perform everyday tasks—bathing, dressing, eating, or moving around—when they can no longer do those things on their own.
This care can be provided in:
- Your own home
- An assisted living facility
- A nursing home
The average cost for a private room in a nursing home now exceeds $100,000 per year. Even basic in-home care can add up to thousands per month.
The Financial Impact of Ignoring It
Many people believe Medicare will cover long-term care. It doesn’t.
Medicare only covers short-term skilled care, typically after a hospital stay. For anything beyond that, you’re on your own—unless you qualify for Medicaid, which requires spending down nearly all your assets first.
This means:
- Your 401(k), IRA, or home equity could be drained quickly
- Your spouse may be left with little to live on
- You may have to rely on family members who aren’t prepared to help
Without a plan, your options are limited—and your financial independence is at risk.
Long-Term Care Planning Options
There’s no one right answer for everyone. At MB Wealth Advisors, we help clients evaluate several options, including:
1. Traditional Long-Term Care Insurance
You pay an annual premium and receive a daily or monthly benefit if you need care.
Pros:
- Cost-effective if purchased early (50s to early 60s)
- Protects your other assets from care costs
Cons:
- Premiums can rise over time
- Use-it-or-lose-it: if you never need care, the policy doesn’t pay out
2. Hybrid Life Insurance With Long-Term Care Riders
These policies combine life insurance with long-term care benefits. If you need care, the policy pays out early. If not, your heirs receive the full death benefit.
Pros:
- Guaranteed premiums
- No “use it or lose it” downside
- Provides benefits in both scenarios (care or death)
Cons:
- Higher initial cost than traditional LTC insurance
- Requires more planning upfront
3. Self-Funding With Assets
Some people choose to set aside money specifically for long-term care.
Pros:
- No premiums or insurance contracts
- Full control of your funds
Cons:
- May not be enough to cover high or extended care needs
- Could affect legacy plans or leave a surviving spouse exposed
We help clients assess whether self-funding is realistic based on their overall retirement and estate plan.
Protecting Your Spouse and Legacy
Long-term care doesn’t just affect you—it impacts your spouse, children, and future heirs. Without a plan, your partner may struggle financially or be forced into caregiving roles they’re not equipped to handle.
A good strategy considers:
- Income protection for your spouse
- Preserving family assets
- Minimizing tax exposure
- Coordinating with your estate plan and powers of attorney
We build long-term care planning into your broader financial strategy, so your loved ones are protected along with your savings.
When to Start Planning
The best time to address long-term care is before you need it. Ideally, that means your late 40s to early 60s. Waiting too long can limit your options, increase costs, or disqualify you from coverage due to health changes.
If you’re nearing retirement and haven’t explored this yet, now is the time.
Get a Customized Plan That Fits Your Life
At MB Wealth Advisors, we help you evaluate all your options—insurance, investments, hybrid strategies—and guide you toward a plan that protects your independence, your family, and your financial future.
We don’t believe in fear-based sales tactics. Just smart, clear guidance that puts you in control.
Visit our Insurance Services or call (704) 584-9363 to talk through your long-term care planning options. You can also get in touch via our secure form at mbwealthadvisors.com/contact/#connect.