At some point, you or a loved one may not be able to perform simple, everyday activities. Long-term care (LTC) helps you through these times to ensure you’re comfortable and safe.
LTC includes services you may need if you're unable to perform two or more of the six Activities of Daily Living (ADLs), which include bathing, continence, dressing, eating, toileting and basic mobility. It also applies if you experience severe cognitive impairment.
Why do I need long-term care planning?
Being prepared for this situation, both emotionally and financially, takes planning. Anticipating your needs and exploring your insurance options is a great first step. LTC insurance can help financially protect the life you’ve built and the people who matter most. Whether you're thinking ahead for yourself, your spouse, or aging parents, having a plan in place can give you confidence that you’ll be able to meet all the goals you want to achieve.
Our Advisors can build long-term care into your overall plan
Nearly 70% of Americans over 65 are expected to need some form of long-term care.* Since these costs are not usually covered by traditional health insurance, Medicare or Medicaid, planning ahead is critical. Our Financial Advisors can support you in exploring long-term care strategies that align with your broader financial goals.
Where can I receive long-term care?
You can get care in different settings including in your home, an assisted living facility, a nursing home, or a continuing care retirement community. While you may prefer to stay in your home, or “age in place,” consider the responsibilities, decisions and potential costs involved in coordinating care, especially when relying on family members or hired providers.
What does long-term care insurance actually cover?
The most common LTC insurance coverage includes:
Home care
Support with daily activities like bathing, dressing and cooking in your own home as well as providing transportation. Some states also allow aides to administer medication or check vital signs.
Assisted living facilities
Residential settings offering help with daily tasks and care coordination, typically for those who don’t need constant medical supervision. Options may include individual apartments or standalone homes.
Nursing home care
Comprehensive, 24/7 medical care for individuals with serious health conditions or advanced cognitive impairment. Services often include on-site physical, occupational, and respiratory therapy.
What are the benefits of long-term care insurance?
Traditional long-term care insurance offers flexible, customizable coverage that can be tailored to your needs and budget. Key features include:
- Adjustable benefits, such as coverage amount, benefit period, inflation protection, and elimination period (i.e., how long you’re responsible for LTC costs before insurance starts paying, similar to a deductible)
- Flexible premium payment (monthly, quarterly, semiannually, annually)
- Possible eligibility for state income tax credits (availability varies by state)
- Premiums may increase over time if the insurer adjusts its rates
To explore how traditional long-term care insurance could work with your plan, talk to aUBS Financial Advisor today.
Hybrid policies combine long-term care coverage with a life insurance benefit, offering more predictability and the potential to keep more money if care is not needed. Key features include:
- Long-term care benefits alongside a death benefit
- Premiums paid upfront or through a fixed installment schedule
- If long-term care is never used, your estate gets a death benefit
To see how hybrid long-term care insurance could fit into your plan, talk to aUBS Financial Advisor today.
Permanent insurance policies with a long-term care rider combine a traditional life insurance benefit with the flexibility to help cover long-term care expenses. Key features include:
- A larger death benefit compared to Hybrid long-term care insurance
- Typically requires full medical underwriting and may offer limited care services
- Being the most attractive option when there is an existing life insurance need.
To see how permanent insurance with LTC rider policies could fit into your plan, talk to a UBS Financial Advisor today.
Annuities with long-term care benefits allow you to prepare for future needs while maintaining your savings. Some annuities are also designed to grow income. Key features include:
- The ability to cover LTC costs without draining assets
- Riders that increase payouts when long-term care is needed
- The advantage of preserving savings for other long-term financial goals
To see how annuities for long-term care could work within your plan, talk to a UBS Financial Advisor today.
How much does long-term care cost? How should I pay for it?
A 65-year-old couple needing long-term care (LTC) can expect to pay an average of $323,000 on LTC expenses through retirement. For others, it may be higher. Depending on your situation, how to plan on paying for it can feel uncertain, because no two experiences are the same.
Still, there are things you can do to prepare now. Start by asking these questions with your family and your financial advisor:
- Would you want to stay in your home if you needed care?
- If at home, who would provide the care?
- Would you want to move a homecare facility?
- How would you pay for it? (i.e., through your savings, an IRA or 401(k), Health Savings Account or long-term care insurance)?
Want to be more confident in long-term care planning? Get in touch with a UBS Financial Advisor to explore your options.
Our experienced advice
UBS Financial Advisors bring together planning, insurance, and estate strategies to help you pursue your largest financial goals.
Long-term care insurance FAQs
*How Much Care Will You Need? | ACL Administration for Community Living (Statistics reflect the likelihood of needing long-term care services for someone turning age 65 today.)
