InsuranceQuoteToolkit

Retirement Risk

Long-term care, planned right.

70% of retirees need LTC. Median cost exceeds $100k/year and Medicare does not cover it. The decision must be made before age 62.

The three paths

  • Traditional LTC insurance: Lowest cost. Use-it-or-lose-it. Premiums may increase.
  • Hybrid life/LTC: Permanent life policy with LTC rider. Death benefit if unused.
  • Self-funding: Reserve $500k+ specifically for care. Only viable above $3M net worth.

Mandatory features

  1. Inflation rider — non-negotiable; care costs rise 4–5% per year.
  2. Shared-care rider for couples — pool benefits.
  3. State Partnership Program eligibility — protects assets from Medicaid spend-down.
  4. 3–5 year benefit period — covers typical care duration.

Continue: Retirement security framework →

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