Protect your retirement savings from the potentially devastating cost of nursing home, assisted living, or in-home care — plan ahead with independent guidance from Michael Schroder.
Book a Free ConsultationMost retirement plans address income, investments, and healthcare costs — but they overlook one of the largest and most common financial threats facing retirees: the need for extended care. According to federal research, nearly 70% of people turning 65 today will require some form of long-term care services during their lifetime. Whether that means in-home assistance with daily activities, adult day care, assisted living, memory care, or a skilled nursing facility, these services are expensive — and the costs are rising. A private room in a Nebraska nursing facility currently costs over $90,000 per year on average. Without a plan, a few years of care can consume retirement savings that took decades to accumulate.
Long-term care insurance is designed to cover those costs without forcing you to spend down your assets to qualify for Medicaid. Traditional LTC policies pay a daily or monthly benefit that can be applied to the care setting of your choice — at home with a paid aide, in an assisted living community, or in a skilled nursing facility. You retain control over where you receive care rather than being limited to what Medicaid will fund. Hybrid life insurance policies that include long-term care riders have grown in popularity in recent years because they offer a guaranteed death benefit — if you never need long-term care, your heirs receive the life insurance benefit rather than the policy simply lapsing without a return. Subject to policy terms and conditions.
The most important factor in long-term care planning is timing. The earlier in your 50s or early 60s you apply, the more affordable the premiums and the more likely you are to qualify medically. Waiting until your 70s can dramatically increase the cost of coverage and raise the risk of being declined due to health changes. Michael helps clients in Omaha and across Nebraska integrate long-term care planning into a comprehensive retirement strategy — addressing not just the financial exposure, but also the dignity and choice that good planning provides when the time comes.
Receive care in your own home with a paid aide or home health agency — many people prefer to remain at home as long as possible, and LTC insurance can make that financially feasible.
Benefits can apply to a range of care settings — assisted living communities, memory care units, and skilled nursing facilities — giving you and your family real flexibility in care decisions.
LTC insurance may help preserve the retirement savings and assets you've spent a lifetime building — rather than spending them down to qualify for Medicaid or depleting a surviving spouse's resources.
Hybrid policies provide a death benefit to heirs if long-term care benefits are never used — addressing the concern that traditional LTC premiums are "wasted" if care is never needed. Subject to policy terms.
Riders that increase your daily or monthly benefit over time can help protect against rising care costs — ensuring that a benefit purchased today still covers a meaningful portion of future care expenses.
Married couples may be able to share a combined pool of benefits, and spousal discounts are often available — making LTC planning more cost-effective for couples planning together.
The 50s represent the sweet spot for long-term care planning — premiums are still affordable, medical qualification is generally easier, and there is time to build a meaningful benefit before retirement.
If you've accumulated meaningful retirement savings, protecting them from a long-term care event should be part of your retirement income strategy. LTC insurance is designed to preserve assets rather than deplete them.
A long-term care event for one spouse can devastate the finances of the other — who may live for many more years and need those funds for their own retirement. Couple-oriented LTC planning addresses this risk directly.
Not everyone has adult children nearby who can provide or coordinate care. For those without a strong family support network, LTC insurance provides a funded plan for professional care when family isn't available.
Medicare coverage for skilled nursing facility care is very limited. Medicare Part A covers up to 100 days in a skilled nursing facility following a qualifying hospital stay — and only if you continue to require skilled nursing or rehabilitation services. It does not cover custodial care (help with bathing, dressing, eating, etc.), which is what most long-term care involves. After Medicare benefits are exhausted, residents either pay out of pocket or turn to Medicaid — which requires spending down assets to qualify and limits which facilities will accept you.
Traditional long-term care policies charge an ongoing premium that can be subject to rate increases and pay benefits only if you need qualifying care. If you never need care, there is no return of premium. Hybrid policies combine life insurance with a long-term care rider — typically funded with a lump-sum premium or a limited number of payments. If you need care, the policy pays LTC benefits. If you don't, your heirs receive a death benefit. Hybrid policies generally have more predictable costs and a guaranteed benefit regardless of whether LTC is used, but they require a larger upfront or near-term financial commitment. Subject to policy terms.
Most financial planners recommend applying between ages 52 and 64. Earlier than 52, premiums are low but you're paying them for many more years before benefits are likely needed. After 65, premiums increase significantly and the probability of health-related declination or exclusions rises. Waiting until your 70s substantially raises both the cost and the risk of not qualifying at all. The longer you wait, the narrower your options become — acting while you're in good health is the most important factor.
Yes — and it happens regularly. The average length of a long-term care stay requiring facility-level care is approximately 2.5 years, though many people require care for much longer. At Nebraska nursing facility rates that commonly exceed $90,000 per year, even a 3-year stay can consume $270,000+ in savings. For couples, a long care event for one spouse can leave the remaining spouse with severely depleted resources. Long-term care insurance is designed to fund that care — protecting retirement assets for the spouse who remains independent.
A free consultation with Michael is the best first step. He'll explain your long-term care options clearly and help you decide whether and how LTC coverage fits your retirement plan.
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