Long Term Care Reality Check
Why Your Retirement Plan Might Have a $300,000 Blind Spot
The Numbers Don't Lie (Even When We Wish They Would)
70% Club
70% of people turning 65 will need long-term care…but only 7% have coverage for it.
Why? Because of rampant myths, misconceptions, and misunderstandings
These false beliefs don’t just cause confusion — they can cost you hundreds of thousands and wreck your retirement.
6-Figure Punch in the Face
Average annual costs that'll make your calculator cry!
- Home Health Aide: $77,792/yr
- Assisted Living: $70,800 /yr
- Nursing Home (Private): $127,750/yr
- Memory Care: Even more (because apparently dementia comes with premium pricing)
The Medicare Myth
What Medicare actually covers for long-term care: ALMOST NOTHING!
Medicare covers skilled nursing for up to 100 days after a hospital stay.
That's it. That's the tweet.
Everything else? That's on you, chief.
Ready to Get Real About Long-Term Care?
The best time to plan for long-term care was yesterday.
The second-best time is right now, before you're sitting in a hospital wondering how you're going to pay for what comes next.
Let's have a conversation about protecting what you've built.
Because retirement should be about enjoying your grandkids, not explaining to them why grandpa had to sell the house.
The Long-Term Care Reality Check Calculator
Want to see what long-term care costs in your area?
Check out the Genworth Cost Calculator:
genworth.com/aging-and-you/finances/cost-of-care.html
Plug in your state and watch the numbers make your coffee go cold. But don't panic – knowledge is power, and we're here to help you turn that knowledge into a plan.
The 7 Long-Term Care Myths That Cost Fortunes
1
Myth #1: "Medicare Will Handle It"
Reality: Medicare will pay for short-term skilled care after hospitalization, but custodial care (the stuff most people actually need)? Nope.
The Bottom Line:
Counting on Medicare for long-term care is like counting on your teenager to do chores without being asked – technically possible, but don't bet your house on it.
2
Myth #2: "I'll Just Give Everything to My Kids"
Reality: The government isn't stupid. They have a five-year "look-back" period for asset transfers. Try to game the system and they'll catch you faster than a parent finding hidden Halloween candy.
The Bottom Line: Asset shuffling isn't planning – it's hoping. And hope isn't a strategy.
3
Myth #3: "Insurance Is Too Expensive"
Reality: Know what's expensive? Paying $127,750 a year out of pocket. Traditional long-term care insurance has spousal discounts of 15-40%, and modern solutions like annuity and life insurance riders give you multiple ways to win.
The Bottom Line:
Insurance feels expensive until you need it. Then it feels like the best money you ever spent. Besides, there are better options today that aren’t use it, or lose it.
4
Myth #4: “I’ll Buy It When I Know I Need It”
Reality: By the time you know you need it, it’s often too late. Long-term care insurance requires health underwriting and once your health changes, you could be denied or priced out. Waiting until you “need it” is like trying to get flood insurance after the basement’s already underwater.
The Bottom Line:
You don’t wait until your car breaks down to get auto insurance — you get it because something could happen. Long-term care protection works the same way. Plan early, qualify while you're healthy, and keep your options wide open.
5
Myth #5: "My Family Will Take Care of Me"
Reality: 43% of adults worry that caregiving costs will prevent them from retiring. Your kids love you, but they also have mortgages, college funds, and their own retirement to worry about.
The Bottom Line:
Family caregiving sounds sweet until it bankrupts everyone involved.
6
Myth #6: “I’ll Just Use a Medicaid Asset Protection Trust — It’s the Best Option”
Reality: A Medicaid Asset Protection Trust (MAPT) can help shield assets from long-term care costs — but it’s not a magic wand. There’s a 5-year look-back, you give up control, and if it’s not set up early or correctly, it can backfire. This isn’t a last-minute escape hatch — it’s a pre-planned parachute.
The Bottom Line:
A MAPT can be powerful — if it’s done right and early. But don’t assume “trust = protection.” It’s one tool in the toolbox. Hybrid LTC policies, annuities with care benefits, and other modern strategies may offer more flexibility, growth, and control.
7
Myth #7: “Medicaid Will Cover My Long-Term Care”
Reality: Yes, Medicaid can help… after you’ve spent down your assets to near-poverty levels. And even then, the government often places a lien on your home to claw back costs after you pass. So technically, Medicaid might cover your care — but your kids could inherit a foreclosure notice instead of a front porch.
The Bottom Line:
Medicaid is the safety net — not the plan. If protecting your dignity and your family’s legacy matters, don’t wait for the government to call the shots. Plan ahead while you still have options (and your house).