Clear answers to the questions we hear most often — in plain language, without the jargon.
LTC insurance covers the cost of care when you can no longer perform at least two of six activities of daily living (ADLs) without assistance, or when you require supervision due to cognitive impairment. Covered care settings typically include: nursing homes, assisted living facilities, memory care facilities, home health care, adult day care, hospice care, and respite care. Some policies also cover international care and residential care facilities.
The ideal window is your 50s to early 60s. At this age, premiums are relatively affordable, you are more likely to qualify medically, and inflation protection has more time to compound. Waiting significantly increases premiums — and every year of delay is a year in which a health event could make you permanently uninsurable. The best time to buy was 10 years ago; the second-best time is now.
Premiums vary significantly based on your age, health, coverage amount, benefit period, and inflation protection. As a rough benchmark: a 55-year-old in good health might pay $2,500–$4,500 per year for a traditional policy providing $5,000–$8,000/month in benefits with 3% inflation protection. A 65-year-old might pay $5,000–$9,000+ for equivalent coverage. Single-premium hybrid policies require a one-time deposit — typically $100,000 to $500,000 — and have no ongoing premium obligation.
It depends on the condition. Many people with common health issues can still qualify for LTC insurance, particularly through hybrid or asset-based policies which sometimes have more flexible underwriting. However, certain conditions — including Alzheimer's, Parkinson's disease, multiple sclerosis, and recent strokes — typically result in declines. The only way to know definitively is to apply and go through underwriting. We help our clients understand their options across multiple carriers before submitting applications.
The elimination period is the "deductible" of your LTC policy — the number of days you must pay for care out-of-pocket before the policy begins paying benefits. Common elimination periods are 30, 60, or 90 days. Choosing a longer elimination period reduces your premium but increases your initial out-of-pocket exposure. A 90-day elimination period on a $24,000/month policy means you'd pay up to $72,000 before benefits kick in — so we typically recommend clients have liquid savings sufficient to cover this gap.
Inflation protection increases your monthly benefit amount each year to keep pace with rising care costs. Without it, a policy purchased today with a $8,000/month benefit might cover only a fraction of the $16,000/month cost of care 20 years from now. We strongly recommend inflation protection for anyone under 70 at the time of purchase. A 3% compound inflation rider doubles your benefit in approximately 24 years; 5% compound doubles it in 14 years. The right choice depends on your age and the anticipated years until you may need care.
Yes, with conditions. LTC insurance premiums qualify as a medical expense deduction on Schedule A, subject to age-based limits set annually by the IRS. For 2025, the eligible deduction for those age 70 and older is approximately $6,000+ per person. For business owners, C corporations can sometimes deduct LTC premiums entirely as a business expense, subject to specific requirements. We help our clients maximize every available tax advantage — this is where our CPA background provides distinct value.
LTC insurance policies are protected by state guaranty associations, which provide coverage for policyholders if an insurer becomes insolvent. Coverage limits vary by state — typically $300,000 to $500,000 in benefits per policyholder. We focus on placing coverage with financially strong, highly-rated carriers to minimize this risk in the first place. All carriers we work with carry A or better ratings from major rating agencies.
Traditional LTC insurance: pays benefits only if long-term care is needed; premiums may increase over time; if care is never needed, premiums are not returned ("use it or lose it"). Hybrid LTC insurance (asset-based): combines LTC benefits with a life insurance or annuity chassis; if LTC is needed, the policy pays for care; if LTC is never needed, a guaranteed death benefit is paid to heirs — eliminating the use-it-or-lose-it concern. Hybrid policies have become the most popular choice for our clients due to the elimination of this concern.
Claim filing begins with a formal request to your insurance carrier, typically accompanied by documentation from a licensed health care practitioner certifying that you meet the policy's benefit triggers (either inability to perform 2+ ADLs or cognitive impairment). The insurer then conducts its own assessment, often using a third-party nurse assessor. Once the claim is approved and the elimination period is satisfied, benefits begin. We advise clients on the claims process and can assist in ensuring the documentation is complete and accurate to avoid unnecessary delays.
This is the most important question we help clients answer. Many people have existing LTC policies purchased 10–20 years ago that are now significantly inadequate due to rising care costs, outdated coverage terms, and insufficient inflation protection. Our complimentary policy review identifies exactly whether your current coverage is sufficient, whether you're overpaying, and what — if any — optimization makes sense for your situation.
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