LTC Explained – Video 4
At-a-Glance Summary
The Cost Reality
Even “modest” home care in the NYC metro area—about eight hours a day—already runs close to $120k per year. With health-care inflation running 3–8% annually, that same level of help is projected to cost roughly $720k in 15 years and $1.4 million in 30 years.
Why You Can’t Count on Medicare or Medicaid
Medicare and private health insurance pay only for short-term, skilled or rehabilitative care (typically a few weeks). Long-term custodial care—help with everyday activities—is excluded. Medicaid will step in only after you’ve spent down assets and met strict medical-need tests, and even then the hours approved are often minimal.
Self-Funding vs. Insurance
Paying out of pocket means liquidating investments and absorbing taxes; every dollar of care can end up costing 1.5 dollars or more. Shifting the risk to a long-term-care (LTC) insurer yields tax-free benefits and leverage—often 5–10× times the premiums paid.
Coverage Paths
Traditional standalone LTC policies, hybrid “asset-based” plans, life-insurance policies with LTC riders, and annuities with chronic-care riders all create that leverage. Employees can match coverage to their health, budget, and estate goals.
Key Takeaways
Qualifying while you’re still healthy and locking in an LTC plan preserves assets, reduces tax drag, and guarantees far more buying power than self-funding—turning future six- or seven-figure care bills into manageable, predictable premiums today.
