Plan for Long-Term Care – Preserve Your Independence and Assets
Protect your retirement from rising healthcare costs
Needing long-term care is one of the biggest risks to a retirement plan. Assisted living, nursing homes, or in-home care can quickly drain savings and create stress for families. At Synergy Wealth Management, our Houston advisors help you evaluate long-term care insurance and other strategies so you can plan ahead with confidence.
Why Long-Term Care Planning Matters
A Risk Too Big to Ignore
With people living longer than ever, nearly 70% of adults over age 65 will need some form of long-term care. Medicare only covers very short-term skilled care, leaving most expenses to be paid out of pocket. In Texas, annual costs for nursing home care or assisted living can range from $50,000 to well over $100,000. Without a plan, these costs can erode retirement savings and place a heavy burden on loved ones.
Long-Term Care Insurance – How It Works
Coverage Designed to Support Quality Care
Long-term care insurance policies provide benefits if you can no longer perform basic Activities of Daily Living (ADLs) such as bathing, dressing, or eating—or if you develop a serious cognitive condition. Benefits may cover:
- In-Home Care – Home health aides or visiting nurses.
- Assisted Living – Residential facilities for ongoing support.
- Nursing Home Care – Skilled care for more serious health needs.
- Adult Day Care – Community-based care options.
Newer “hybrid” policies combine life insurance or annuities with long-term care benefits, allowing flexibility if care is never needed.
Determining If LTC Insurance Is Right for You
Matching Coverage to Your Needs
Not everyone needs long-term care insurance, but many benefit from it. Those with very few assets may eventually qualify for Medicaid, while very high-net-worth families may self-insure. For many, especially those in the middle, insurance helps protect retirement savings and family assets. The ideal time to consider coverage is often in your late 50s or early 60s—before health conditions make it harder or more expensive to qualify.
Cost vs. Benefit
Balancing Premiums and Peace of Mind
Premiums for LTC insurance can be significant, and policies vary in benefit periods and inflation protection. Our advisors help project long-term affordability and determine whether a policy is the right fit for your budget. While some clients worry about paying for a policy they may never use, many find peace of mind knowing they’ve protected their spouse and heirs from financial strain.
Alternative Strategies
Planning for Care Without Insurance
If traditional LTC insurance isn’t the right fit, there are alternatives. Options may include earmarking investment funds, using home equity, or considering family caregiving arrangements. Hybrid policies are also growing in popularity because they provide long-term care benefits but guarantee a life insurance payout if the coverage is never used. Synergy evaluates all strategies to help you prepare for this risk.
