Episode 12: Do You Need Long-Term Care Coverage?

Written By Greg Hutto

Retirement isn't just about saving money—it's about preparing for all of life's turns. This week, we wrap up our "entitlements" series with a deep dive into long-term care. It’s not an entitlement, and it’s not cheap—but it’s often necessary. In this episode, you’ll learn when to consider coverage, what it costs, who really needs it, and how to plan ahead with both traditional policies and alternative investment options.

01:04 – Wrapping Up the Entitlements Series

  • Social Security ✔ Medicare ✔ Now it’s long-term care

  • Why it’s not an entitlement and why you need to plan for it

02:06 – What Is Long-Term Care Insurance?

  • Medicare only covers limited care

  • Why you can’t rely on the government alone

02:37 – Can You Self-Insure?

  • Medicaid for lower assets (<$100k)

  • Self-insure for high assets (>$2M)

  • Everyone else is the “messy middle”

03:11 – When to Buy Long-Term Care Coverage

  • Best time: mid-50s before health issues arise

  • Conditions like dementia and mobility issues affect eligibility

05:11 – How Much Does It Cost?

  • $200/day benefit, 4-year term, ~ $5,000/year if bought at 55

  • Optional riders: inflation protection, elimination period

07:26 – What It Covers: Facility vs Home Care

  • Better policies include all levels: home, assisted living, nursing care

  • Greg’s story of caring for his dad and adult daycare

09:21 – The Case for Planning Ahead

  • Importance of having a financial advisor

  • How to contact Greg and get a free book

10:26 – Elimination Periods Explained

  • Standard is 90 days, but you can opt for longer

  • Tradeoff between premium and waiting period

11:06 – Coverage Length & Lifetime Options

  • Most policies cover 2–4 years

  • One carrier offers lifetime coverage with a continuation rider

13:08 – When People Don’t Plan

  • Heartbreaking stories of families caught off guard

  • The myth of family caregiving as a fail-safe

  • Geography and physical limitations complicate care

13:32 – Alternative Option: LTC Riders on Annuities

  • A way to avoid underwriting and still get coverage

  • Example: $100k investment = $24k/year for LTC use

  • Great fit for certain health or financial profiles

15:24 – Success Story: Greg’s Parents

  • First long-term care policy Greg sold—$93/month

  • Ended up paying out over $300k

  • Real impact of early planning

17:29 – More Info on Planning Ahead

  • Book: Have More by Giving More in Retirement

  • Chapter on long-term care, asset protection, and insurance

18:31 – Medicaid as a Last Resort

  • Spend down to $2,000 in countable assets

  • The emotional and financial toll of qualifying for Medicaid

19:23 – Preview: Life Insurance Deep Dive Next Week

  • Term vs whole, what's right for you?

  • More insurance topics on deck

20:26 – Final Thought: Just Get the Facts

  • If you're uninsurable, annuities with LTC riders may help

  • Know your options—before it’s too late

Resources & Links

Greg Hutto
Next

Episode 11: Healthcare, Headaches, and How to Plan Smarter