Senior Resources » 6 Alternatives To Long-Term Care Insurance

6 Alternatives To Long-Term Care Insurance

As we age, it’s natural to start thinking about how we’ll manage our health and well-being in our golden years. Many people turn to long-term care insurance, which can help cover the cost of a wide range of care services. However, this type of coverage isn’t for everyone. Luckily, alternative options exist. So, if you’re an older adult who’s concerned about your health, you couldn’t be in a more perfect place. Here are SIX alternatives to long-term care insurance.


1. Self-Insurance

One option that some seniors choose to pursue is self-insurance. This means setting aside a portion of your retirement savings or other assets to cover long-term care expenses. While this requires careful planning, it’s perfect for those who don’t want to pay ongoing premiums for long-term care insurance. However, it’s important to keep in mind that long-term care expenses can add up fast. Make sure that you set aside some savings and start budgeting so you can cover the cost!

2. Medicaid

Medicaid is a joint federal and state program that helps low-income individuals and families pay for their healthcare needs. To be eligible for Medicaid long-term care benefits, you must meet certain income and asset requirements that vary by state. If you qualify, Medicaid can help cover the cost of nursing home care. Some states also offer home-based care options. However, many nursing homes have limited Medicaid beds, so you may not be able to choose the one you prefer. Additionally, not all long-term care facilities accept Medicaid. Make sure you do your research and find facilities that do!


3. Life Insurance with Long-Term Care Benefits

LTC care

A third option is life insurance policies with long-term care benefits. These policies allow you to access life insurance death benefits to cover long-term care expenses. With this alternative, you’ll pay a one-time premium for coverage that can last for the rest of your life. Additionally, you can use the benefits for any kind of care you need, including in-home care, assisted living, and nursing home care. It’s important to note this type of policy often requires a health screening, and the premiums might be high. So, bear that in mind and plan accordingly!

4. Hybrid Policies

A hybrid policy combines life insurance and long-term care benefits into one, comprehensive package. These policies typically require a lump-sum premium payment upfront but can provide a higher death benefit than traditional long-term care insurance policies. Hybrid policies can be complex and expensive, so consult with a financial advisor before making any decisions.

5. Annuities with Long-Term Care Benefits

annuity jar

An annuity pays a regular income stream for a set period of time or until the policyholder’s death. Some annuities include a long-term care rider. This allows you to use a portion of your annuity payments to pay for your long-term care expenses. If you’re worried about running out of money in your retirement years, annuities may provide stable, guaranteed income for life.

6. Personal Savings

Lastly, personal savings can be a viable option for covering the costs of long-term care. Of course, this option requires planning and lots of budgeting to ensure you can cover the high costs of long-term care. Creating a separate savings account specifically for long-term care expenses and contributing to it regularly can be a simple way to go about this option. Additionally, it’s always a good idea to work with a financial planner who can help you budget and plan.


Looking for more?

senior home care helping hands

Whether you choose to self-insure or opt for long-term care benefits, make sure to weigh the costs and benefits of each option. With careful planning, you can prepare for your long-term care needs and enjoy a happy, healthy retirement. Still looking for more information? Then check out our Health & Wellness Blog for more great articles!

Popular Articles About Long-Term Care

Originally published August 24, 2023


Free Senior Resources

Ultimate Guide to Retirement Communities

The Ultimate Guide to Retirement Communities

Get The Guide
5 Health conditions e-book cover

5 Health Conditions That Affect Baby Boomers and 5 Ways to Avoid Them

Get The Guide
ultimate estate planning checklist and guide

Ultimate Estate Planning Checklist & Guide

Get The Guide

Guide to Adult Day Care

Get The Guide
Show this content while the ad loads.