“Long Term Care Insurance: Planning for Independence, Not Dependence”

Introduction to LTC

“Most people don’t plan to need long‑term care. And yet, most of us will.”

Welcome to the show. Today we’re talking about long‑term care insurance—what it is, what it isn’t, and why it deserves thoughtful consideration as part of a broader retirement and estate strategy.

This isn’t about worst‑case scenarios or fear‑based planning.
 It’s about control, independence, and safeguarding the people we care about.

When families come into my office, long‑term care is often one of the most emotional planning topics. It touches on health, dignity, family dynamics, and finances, all at the same time.

Today, my goal is simple:

• To clarify how long‑term care really works
• To explain the different ways people plan for it
• And to help you think through whether insurance belongs in your plan

WealthGrow - By Wharton Investment Consultants 5010 Canby Drive, Wilmington DE 19808 Tel: 302-239-2111

Securities and advisory services offered through Registered Representatives of Cetera Advisor Networks LLC (doing insurance business in CA as CFGAN Insurance Agency LLC), member FINRA, SIPC, a broker/dealer and a Registered Investment Advisor Cetera is under separate ownership from any other named entity.

Transcript

[00:00:00] Speaker 1: Long term care insurance, [00:00:02] Speaker 1: planning for independence, [00:00:03] Speaker 1: not dependence. [00:00:05] Speaker 1: Welcome to WealthGo [00:00:06] Speaker 1: where we discuss building wealth, securing your future, and making informed financial decisions. [00:00:13] Speaker 1: My name is Stuart Cameron, [00:00:15] Speaker 1: OSJ branch manager and financial advisor [00:00:18] Speaker 1: with Wharton Investment Consultants. [00:00:21] Speaker 1: A quick note before we begin. [00:00:24] Speaker 1: Nothing here is personal advice. [00:00:26] Speaker 1: This is educational. [00:00:28] Speaker 1: Your situation is unique, [00:00:30] Speaker 1: and the right path depends on your goals, [00:00:34] Speaker 1: and risk tolerance. [00:00:36] Speaker 1: Speak with your adviser, [00:00:38] Speaker 1: ideally a fiduciary, [00:00:39] Speaker 1: to tailor these ideas to you. [00:00:43] Speaker 1: Most people don't plan [00:00:45] Speaker 1: to need long term care, and yet most of us will. [00:00:50] Speaker 1: Welcome to the show. tax picture, [00:00:52] Speaker 1: Today, we're talking about long term care insurance, [00:00:55] Speaker 1: what it is [00:00:56] Speaker 1: and what it isn't, [00:00:58] Speaker 1: and why it deserves thoughtful consideration [00:01:01] Speaker 1: as part of a broader retirement and estate strategy. [00:01:07] Speaker 1: This isn't about worst case scenarios or fear based planning. [00:01:11] Speaker 1: It's about control, [00:01:13] Speaker 1: independence, [00:01:14] Speaker 1: and safeguarding the people we care about. [00:01:18] Speaker 1: When families come into my office, long term care is often one of the most emotional [00:01:23] Speaker 1: planning topics. [00:01:25] Speaker 1: It touches on health, [00:01:27] Speaker 1: dignity, [00:01:29] Speaker 1: family dynamics, [00:01:30] Speaker 1: and finances [00:01:32] Speaker 1: all at the same time. [00:01:35] Speaker 1: Today, my goal is simple, [00:01:37] Speaker 1: to clarify how long term care really works, [00:01:40] Speaker 1: to explain the different ways people plan for it, [00:01:43] Speaker 1: and to help you think through whether insurance belongs in your plan. [00:01:49] Speaker 1: So what is long term care? Let's start with the basics. [00:01:53] Speaker 1: Long term care is not medical care. It's custodial care, [00:01:58] Speaker 1: help with everyday activities when someone can no longer function independently. [00:02:04] Speaker 1: That typically includes [00:02:06] Speaker 1: bathing, [00:02:07] Speaker 1: dressing, [00:02:09] Speaker 1: eating, [00:02:10] Speaker 1: transferring, [00:02:11] Speaker 1: toileting, [00:02:12] Speaker 1: and managing cognitive [00:02:14] Speaker 1: impairment. [00:02:16] Speaker 1: Care can happen at home, [00:02:18] Speaker 1: in assisted living, [00:02:20] Speaker 1: in memory care, [00:02:22] Speaker 1: or in a nursing [00:02:24] Speaker 1: facility. [00:02:26] Speaker 1: A common misconception [00:02:28] Speaker 1: is that Medicare covers this. [00:02:30] Speaker 1: It does not, [00:02:32] Speaker 1: at least not in any meaningful[00:02:35] Speaker 1: long term way. [00:02:37] Speaker 1: Medicare may cover short term skill care [00:02:40] Speaker 1: after hospitalization [00:02:42] Speaker 1: within strict limits, [00:02:46] Speaker 1: But ongoing custodial care, [00:02:48] Speaker 1: that's largely out of pocket unless you qualify for Medicaid, [00:02:53] Speaker 1: which requires spending down assets. [00:02:56] Speaker 1: And that's where planning [00:02:58] Speaker 1: or lack of it really shows up. [00:03:02] Speaker 1: The real cost of care. Let's talk dollars. [00:03:06] Speaker 1: Based on 2026 [00:03:07] Speaker 1: projections, [00:03:09] Speaker 1: figures accurately [00:03:11] Speaker 1: reflect the rising costs of senior care in The United States, [00:03:16] Speaker 1: where home health care typically costs around $35 [00:03:20] Speaker 1: per hour, [00:03:21] Speaker 1: assisted living [00:03:23] Speaker 1: averages over 5,400 [00:03:25] Speaker 1: per month, [00:03:26] Speaker 1: and nursing homes often exceed 9 to 11,000 [00:03:30] Speaker 1: plus per month [00:03:33] Speaker 1: depending on room type. [00:03:35] Speaker 1: This comes from a source a place for mum. [00:03:39] Speaker 1: And here's the hidden cost that doesn't show up on a spreadsheet, [00:03:43] Speaker 1: family impact. [00:03:45] Speaker 1: When care isn't funded, [00:03:47] Speaker 1: adult children step in, [00:03:50] Speaker 1: careers are interrupted, [00:03:52] Speaker 1: spouses become caregivers, [00:03:54] Speaker 1: and stress compounds quickly. [00:03:57] Speaker 1: This is why many people say, [00:04:00] Speaker 1: I don't want to be a financial or a emotional [00:04:03] Speaker 1: burden on my children. [00:04:06] Speaker 1: Long term care planning is often as much about family asset preservation. [00:04:13] Speaker 1: What long term care insurance actually does. [00:04:17] Speaker 1: At its core, long term care insurance [00:04:20] Speaker 1: transfers part of the financial risk, [00:04:24] Speaker 1: preserves choice and flexibility, [00:04:26] Speaker 1: and creates a dedicated pool of care dollars. [00:04:31] Speaker 1: A traditional policy typically typically includes [00:04:35] Speaker 1: a daily or monthly benefit amount, [00:04:38] Speaker 1: a benefit period, often three to six years, [00:04:41] Speaker 1: an elimination [00:04:43] Speaker 1: period [00:04:44] Speaker 1: similar to a deductible, [00:04:46] Speaker 1: and inflation protection. [00:04:50] Speaker 1: When a benefit trigger is met, [00:04:52] Speaker 1: usually needing help with two activities of daily living or cognitive [00:04:57] Speaker 1: impairment, [00:04:59] Speaker 1: the policy pays. [00:05:01] Speaker 1: Importantly, [00:05:02] Speaker 1: you control how [00:05:05] Speaker 1: and where care is delivered. [00:05:08] Speaker 1: Benefits generally reimburse for real expenses, [00:05:11] Speaker 1: and policies are meant to be used, [00:05:14] Speaker 1: not avoided. [00:05:16] Speaker 1: This insurance isn't about returns. [00:05:18] Speaker 1: It's about leverage, [00:05:20] Speaker 1: predictability, [00:05:22] Speaker 1: and control.[00:05:24] Speaker 1: The evolution of long term care insurance. [00:05:28] Speaker 1: Many people remember the older generation of LTC policies, [00:05:33] Speaker 1: rising premiums, [00:05:34] Speaker 1: uncertainty, [00:05:36] Speaker 1: anxiety about affordability. [00:05:39] Speaker 1: That experience changed the marketplace. [00:05:42] Speaker 1: Today, planning Options include, one, traditional [00:05:46] Speaker 1: long term care insurance, [00:05:48] Speaker 1: lower upfront cost, [00:05:50] Speaker 1: ongoing premiums, [00:05:52] Speaker 1: Best leverage if care is needed, [00:05:55] Speaker 1: where a risk premiums may increase over time. [00:05:59] Speaker 1: Two, [00:06:00] Speaker 1: a hybrid or asset based [00:06:02] Speaker 1: long term care, [00:06:04] Speaker 1: funded with a single premium [00:06:06] Speaker 1: or limited payments, [00:06:08] Speaker 1: combines Life Insurance or annuities [00:06:11] Speaker 1: with long term care benefits. [00:06:13] Speaker 1: If care isn't needed, [00:06:15] Speaker 1: heirs receive a death benefit, [00:06:18] Speaker 1: and there are no premium increases. [00:06:22] Speaker 1: Three, self funding [00:06:24] Speaker 1: for higher net worth families [00:06:26] Speaker 1: requires significant liquidity [00:06:29] Speaker 1: and offers maximum flexibility [00:06:32] Speaker 1: but maximum [00:06:33] Speaker 1: risk exposure. [00:06:37] Speaker 1: There is no universally Best option. [00:06:40] Speaker 1: There is only one that fits your balance sheet, [00:06:43] Speaker 1: family structure [00:06:45] Speaker 1: and personal priorities. [00:06:48] Speaker 1: Who should consider long term care insurance? [00:06:52] Speaker 1: Long term care insurance tends to make the most sense for people [00:06:57] Speaker 1: who have assets they want to protect, [00:07:00] Speaker 1: value independence and choice, [00:07:03] Speaker 1: want to avoid burdening a family, [00:07:06] Speaker 1: are healthy enough to qualify. [00:07:09] Speaker 1: It's typically explored between the ages of 50 and 65. [00:07:14] Speaker 1: Too early and it may not be cost effective. [00:07:17] Speaker 1: Too late and insurability [00:07:19] Speaker 1: becomes the challenge. [00:07:22] Speaker 1: And it's not just about your wealth, it's about risk concentration. [00:07:28] Speaker 1: If a long term care event would materially alter your life or your family's, [00:07:34] Speaker 1: it deserves planning consideration. [00:07:39] Speaker 1: Let's address a few common concerns. [00:07:41] Speaker 1: What if I never use it? [00:07:44] Speaker 1: That's not wasted money. It means your plan worked, and you remained independent. [00:07:49] Speaker 1: It's too expensive. [00:07:51] Speaker 1: Care is more expensive. [00:07:53] Speaker 1: Insurance converts an unknown risk [00:07:56] Speaker 1: into a known cost. [00:07:58] Speaker 1: I'll just rely on family. [00:08:01] Speaker 1: That decision affects more than just finances [00:08:04] Speaker 1: and should be a shared family conversation. [00:08:08] Speaker 1: The industry isn't stable. [00:08:10] Speaker 1: Products have improved. Underwriting is tighter. [00:08:13] Speaker 1: Designs are more conservative. [00:08:16] Speaker 1: In planning, [00:08:17] Speaker 1: certainty[00:08:18] Speaker 1: often matters more than perfection. [00:08:22] Speaker 1: So closing thoughts and call to action. [00:08:25] Speaker 1: Long term care planning isn't about predicting the future. It's about preparing for it thoughtfully. [00:08:32] Speaker 1: Whether you ultimately choose insurance, [00:08:36] Speaker 1: fund care through assets, [00:08:38] Speaker 1: or blend multiple strategies, [00:08:40] Speaker 1: the most important step is having the conversation. [00:08:44] Speaker 1: Talk with your adviser, [00:08:47] Speaker 1: talk with your spouse, [00:08:49] Speaker 1: and talk with your children [00:08:51] Speaker 1: because the people who suffer most from a lack of planning [00:08:55] Speaker 1: are rare rarely the planners themselves. [00:08:59] Speaker 1: Thanks for joining me on this episode of Well Grow. If you found this helpful, please subscribe and leave us a review. [00:09:07] Speaker 1: Got questions or a topic you'd like us to cover? Reach out on social media or at whartonic@ceterranetworks.com. [00:09:16] Speaker 1: Thanks for listening, and until next time, [00:09:19] Speaker 1: plan wisely, [00:09:20] Speaker 1: invest smartly, [00:09:22] Speaker 1: and build a legacy that lasts. [00:09:25] Speaker 1: These podcasts are brought to you by Wharton Investment Consultants, [00:09:29] Speaker 1: 5010 Cambay Drive, Wilmington, Delaware 19808. [00:09:34] Speaker 1: Telephone, (302) [00:09:37] Speaker 1: 239-2111. [00:09:40] Speaker 1: Securities are offered through Saterra Wealth Services LLC, [00:09:45] Speaker 1: member [00:09:46] Speaker 1: FINRA SIPC. [00:09:47] Speaker 1: Advisory services are offered through Cetera Investment Advisors, LLC, [00:09:52] Speaker 1: a registered investment adviser. [00:09:55] Speaker 1: Cetera is under separate ownership from any other named entity. [00:10:00] Speaker 1: The views depicted in this material are for informational purposes only and are not necessarily those of Cetera Wealth Services LLC. [00:10:09] Speaker 1: They should not be considered specific advice [00:10:12] Speaker 1: or recommendations [00:10:13] Speaker 1: for any individual. [00:10:15] Speaker 1: Neither Sotera nor any of its representatives [00:10:18] Speaker 1: may give legal or tax advice. [00:10:22] Speaker 1: The opinions contained in this material are those of the author and not a recommendation [00:10:27] Speaker 1: or solicitation [00:10:28] Speaker 1: to buy or sell investment products. [00:10:31] Speaker 1: This information is from sources believed to be reliable, [00:10:35] Speaker 1: but Cetera cannot guarantee [00:10:37] Speaker 1: or represent [00:10:38] Speaker 1: that it is accurate [00:10:40] Speaker 1: or complete.