Long-Term Care Planning Guide for Retirees (2026)
Plan for long-term care costs: insurance vs self-funding, Medicaid eligibility, hybrid policy options, and timing considerations for care planning.
Summary
Long-term care costs average $100-$300/day. This guide explains insurance options, self-funding analysis, Medicaid rules, and optimal timing for care planning.
Key Steps
- 1Estimate care needs: 70% of people over 65 need some long-term care, average 3 years.
- 2Calculate potential costs: nursing home $100K+/year, assisted living $50K, home care $30K.
- 3Evaluate insurance: premiums age 60=$2,000/year, age 70=$5,000+/year, buy before 65.
- 4Consider hybrid policies: life insurance with LTC rider provides death benefit if unused.
- 5Understand Medicaid: requires asset spend-down to $2,000, look-back period 5 years.