Navigating
Long-Term
Care
Understanding the true cost of care in retirement — and the strategic solutions that protect your savings and your family.
of Americans over age 65 will require some form of long-term care services in their lifetime.
Why LTC Planning Matters
Most retirement plans account for living expenses, travel, and leisure — but overlook the single largest financial "wildcard" of later life: the cost of long-term care.
Without a dedicated strategy, these expenses can rapidly deplete a lifetime of savings, force the sale of a family home, and place an enormous financial and emotional burden on adult children and spouses.
The average woman will need care costing approximately $171,000, while the average man faces costs around $98,000 — largely because women tend to live longer.
The Rising Cost of Care
Professional help with daily living activities
Residential setting with daily assistance
24-hour skilled nursing supervision
Costs are rising at 3–5% annually. At this rate, these figures could double within the next 20 years.
In-Home Care:
Aging in Place
Most seniors prefer to remain in their own homes, but professional support for Activities of Daily Living (ADLs) — bathing, dressing, meal preparation, and mobility — comes with a significant and often surprising price tag.
While part-time care may seem manageable, the need for round-the-clock assistance can escalate costs far beyond what most families anticipate.
per year — often exceeding the cost of a private nursing home room
per month national median
annually — a 10% increase from 2023
Assisted Living:
Community Care
Assisted living communities provide a residential setting for individuals who need help with daily activities but do not require the intensive 24/7 medical supervision of a nursing home.
The Payment Reality: Most assisted living facilities are "private pay." This means they are generally not covered by Medicare, and Medicaid coverage is extremely limited and difficult to access for these settings.
Nursing Home Care:
High-Level Support
Skilled nursing facilities provide 24-hour medical supervision for individuals with chronic illness, significant disability, or complex medical needs that cannot be managed at home or in assisted living.
This is the most expensive tier of care and the one most likely to deplete retirement assets rapidly without proper planning.
per day for a semi-private room
national average — exceeds $200,000 in NY and CA
Estimate Your Costs
Use this calculator to project what long-term care could cost you, factoring in your location, preferred care type, and the impact of inflation over time.
Your Information
National average: 3 years for women, 2.2 years for men
Your Projection
Adjust the inputs and click "Calculate" to see your personalized cost estimate.
How Do Most People Pay?
A staggering 58% of Americans believe Medicare will cover their long-term care costs. It will not. Here is the reality of how care is actually financed today.
Medicare
LimitedOften misunderstood. Medicare only covers short-term rehabilitation — up to 100 days of skilled nursing care following a hospital stay. It does not cover custodial or long-term care.
Medicaid
Last ResortRequires "spending down" nearly all assets to poverty levels ($2,000 in most states) before coverage begins. Medicaid pays for 63% of nursing home residents — but at a devastating personal cost.
Personal Savings
RiskyThe default for many families, leading to rapid depletion of retirement accounts, home equity, and investment portfolios.
Family Caregiving
Hidden CostUnpaid care by family members — often adult children — leads to significant physical, emotional, and financial strain. Families provide 60–75% of informal care.
Three Paths to Protection
Each strategy offers a unique approach to funding long-term care. The right choice depends on your assets, health, and legacy goals.
Traditional LTC Insurance
A standalone policy where you pay annual premiums in exchange for a dedicated pool of long-term care benefits.
Advantages
Highest leverage — most benefit per premium dollar
Highly customizable elimination periods and inflation protection
Considerations
"Use-it-or-lose-it" — no return if care is never needed
Premiums are not guaranteed and may increase over time
Stricter medical underwriting requirements
LTC Annuities
EquiTrust Bridge®A fixed index annuity designed specifically for long-term care, allowing you to repurpose existing low-yield assets into a dedicated care fund.
Advantages
Single premium — repurpose CDs, savings, or other assets
Tax-free LTC benefits under IRC Section 7702B
Growth potential if care is not needed
Simplified underwriting — easier to qualify
Considerations
Requires a lump-sum deposit
Benefits are tied to the premium amount
Life Insurance with LTC Riders
The "hybrid approach" that combines the protection of a death benefit with living benefits for long-term care expenses.
Advantages
Guaranteed legacy — heirs receive a death benefit if LTC is not used
Fixed premiums that typically never increase
Flexibility to advance death benefit funds for care
Considerations
Generally lower LTC benefit than standalone policies
Higher initial premium than traditional LTC
Comparing the Strategies
| Feature | Traditional LTC | LTC Annuity (Bridge) | Life + LTC Rider |
|---|---|---|---|
| Premium Type | Ongoing (Variable) | Single Premium | Fixed or Single |
| LTC Benefit | Highest Leverage | Asset-Based | Asset-Based |
| If Not Used? | No Benefit Returned | Value Stays with You | Death Benefit to Heirs |
| Underwriting | Strict Medical | Simplified | Moderate |
| Tax Advantage | Premiums May Be Deductible | Tax-Free LTC Benefits | Tax-Free LTC Benefits |
Each strategy has unique advantages. The right choice depends on your specific assets, health profile, and legacy goals.
Your Next Steps
Personalized Analysis
We will run a custom projection based on your specific assets and retirement goals.
Strategy Review
Compare the three core solutions to find the right fit for your family's needs.
Implementation
Secure your legacy and protect your retirement savings from rising care costs.
Schedule Your Consultation
The best time to plan is while you are healthy and have options. Don't wait for a crisis.