Long-Term Care PlanningProtecting Your Retirement, Your Assets, & Your Family

7/29/2026 - By Christina Doss, AAMS

When most people think about retirement planning, they focus on saving, investing, and generating income. While these are critical components of a successful financial plan, one of the largest financial risks retirees face is often overlooked: the potential need for long-term care.

As life expectancy continues to increase, so does the likelihood that individuals will require assistance with daily living activities, home health care, assisted living, or skilled nursing care at some point during retirement. The question is how those costs will be funded without jeopardizing a lifetime of savings.

The Growing Long-Term Care Challenge

Long-term care needs are often driven by common age-related conditions such as Alzheimer's disease, dementia, stroke, Parkinson's disease, arthritis, and other chronic illnesses. While many people assume Medicare will cover these expenses, Medicare generally provides only limited coverage for short-term rehabilitation and skilled nursing services. Extended custodial care is typically not covered.

At the same time, the cost of care continues to rise. Today, a private room in a skilled nursing facility can exceed $120,000 per year, while assisted living facilities often cost between $60,000 and $75,000 annually. Even home-based care can become expensive when ongoing support is required, and a multi-year event can quickly result in hundreds of thousands of dollars in expenses.

The Impact on Families

The financial consequences of an extended care event can be significant, but the emotional impact is often just as profound. Without a plan in place, spouses and adult children frequently become caregivers while also managing difficult financial and medical decisions.

A long-term care event can reduce retirement security, strain household finances, and create emotional and physical burdens for loved ones. Planning ahead helps families maintain greater control and reduces uncertainty during an already challenging time.

Who Should Consider Long-Term Care Insurance?

Long-term care insurance is not appropriate for everyone. Individuals with substantial wealth may choose to self-fund future care expenses, while those with limited assets may find the cost of coverage difficult to justify.

For many people, however, it serves as an effective risk-management tool. It may be particularly beneficial for individuals with meaningful retirement assets who wish to preserve both financial independence and monetary legacy while reducing reliance on family members for future care needs. Coverage is often most accessible between ages 50 and 68, before significant health issues arise.

How Long-Term Care Insurance Has Evolved

The long-term care insurance marketplace has changed considerably over the past decade. Traditional policies were often subject to future premium increases, creating uncertainty for policyholders. In response, insurers have introduced hybrid policies that combine long-term care coverage with life insurance or annuity benefits, offering greater predictability and flexibility.

Many hybrid policies feature guaranteed premiums that cannot increase and a guaranteed pool of benefits that clearly defines the amount available for qualifying care expenses. If long-term care is needed, the benefit pool can help cover costs. If care is never required, beneficiaries may receive a death benefit, and some policies also include return-of-premium features that allow policyholders to recover some or all of their investment.

Rather than viewing coverage as “use it or lose it”, these hybrid enhancements have made long-term care planning more attractive by providing asset protection, predictable costs, and confidence that the policy will deliver value regardless of how future care needs unfold.

Planning Before It's Needed

Long-term care planning is ultimately about more than insurance. It is about protecting retirement assets, preserving financial independence, and ensuring that future care needs do not become a burden on loved ones. The most effective plans are developed well before care is needed, when individuals have the greatest number of options available.

 At Saltmarsh Financial Advisors, we use robust financial planning tools to tailor strategies to each client’s financial reality and support their unique goals and needs.

By proactively evaluating long-term care risks and exploring available solutions, families can make decisions based on personal preference rather than financial constraint, helping protect both their financial future and overall well-being. If you would like to speak with a Saltmarsh Financial Advisor about how long-term care may benefit your financial plan and family legacy, contact us today.

About the Author | Christina Doss AAMS ®

Christina is a partner with experience across financial advisory and wealth management services. She began her career in the financial services industry over 30 years ago, focusing on client wealth management and financial planning. 

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