Most of us imagine growing older surrounded by family and enjoying the rewards of a life well-lived. But few of us picture what might happen if we needed help with everyday activities, like bathing, dressing, or preparing meals, for an extended period of time. The truth is, living a long life is almost certain; planning for it is now a necessity.
For women especially, the likelihood of needing long-term care (LTC) is higher. Women not only live longer than men but often serve as caregivers for others before needing care themselves. That combination makes it essential to think proactively about how to protect your independence, assets, and peace of mind through long-term care planning.
Why Long-Term Care Matters
Nearly 70% of people will require some form of long-term care during their lifetime. Yet, most traditional coverage options provide little or no help with these costs:
- Health insurance and Medicare cover skilled, short-term medical care, not ongoing personal care or assistance.
- Medicaid may pay for long-term care, but only after you’ve spent down most of your assets, and the state can place a lien on your home to recover costs.
- Family caregiving, often provided by women, can create emotional, physical, and financial strain.
Without planning, the cost of care can quickly erode even well-prepared retirement savings. In Massachusetts, for instance:
- Home health care averages $40 an hour, or about $9,600 per month for two daily shifts.
- Assisted living averages $8,000 per month, with dementia care typically $2,000 or more beyond that.
- Over a four-year period, factoring in 5% annual inflation, that could mean $800,000 or more in future expenses.
These are not just numbers—they represent the financial realities families face when someone needs extended care. And for single women, those costs can be even more significant, since they’re less likely to have a partner to share expenses or caregiving responsibilities.
What Long-Term Care Insurance Covers
Long-term care insurance helps bridge the gap between what health insurance covers and what ongoing care requires. Benefits generally begin when you can no longer perform at least two of the six Activities of Daily Living, bathing, dressing, toileting, transferring, continence, or eating, or if you experience a severe cognitive impairment that requires supervision.
Having coverage in place ensures that when you need care, you have options, remaining at home with professional support, moving to an assisted living facility, or receiving specialized dementia care, all without depleting your savings or relying entirely on family.
Exploring Your Options
There’s no single “best” policy, only what’s best for you. Today’s long-term care solutions are more flexible than ever:
- Self-Funding – Setting aside and investing funds yourself to cover future care costs. While possible for some, this approach often requires hundreds of thousands of dollars dedicated solely to care.
- Traditional LTC Insurance – Annual premiums provide tax-free daily or monthly benefits when you need care.
- Hybrid Policies – Combine life insurance or annuities with LTC benefits. If you never need care, your heirs receive a death benefit; if you do, the funds convert into tax-free LTC payments.
Even partial coverage can go a long way. A policy covering just 25–50% of projected care costs can dramatically ease financial pressure. Think of it as leveraging your assets—turning a portion of your savings into significantly greater care benefits.
Timing Is Everything
The best time to plan for long-term care isn’t when you need it, it’s while you’re healthy enough to qualify. Health, more than age, determines eligibility and cost. Ideally, explore LTC options once your financial plan shows that you’re on track for retirement, and you’re ready to protect what you’ve built.
Empowering Women to Protect Their Futures
For women, planning ahead is an act of empowerment. Long-term care insurance isn’t just about protecting your money, it’s about protecting your independence, dignity, and loved ones. It allows you to make choices about your care on your terms, without placing a financial or emotional burden on your family.
When you need care, you don’t get to choose whether you can afford it, but you can choose to prepare for it now.
If you’re ready to explore how long-term care planning for women fits into your financial strategy, our advisors at Twelve Point’s Center for Women can help. We’ll walk you through your options, model the financial impact, and help design a plan that aligns with your goals, lifestyle, and legacy. Learn more and connect with us at twelvepointswealth.com/center-for-women.
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