I’m going to push the envelope a little bit here, very purposefully and from a compassionate place. My grandmother spent 14 years in a skilled nursing facility between my ages of six and 20. She had Huntington’s disease at the age of 56. Huntington’s is a cruel disease that decays the brain, made even worse when the body is physically healthy as it endures for years. Most Sundays growing up were spent going to church, then going to the nursing home. 

As I’ve gotten older, I don’t remember the sunny days while my brother and I were outside and the huge hill we could roll down. Instead, I recall the smells, the screaming, and the tears my mother cried on our way home. 

My grandmother was in a good place, and while she still had her memory, they had enough money to afford a private room. Funds eventually ran out and she became eligible for Medicaid. Fortunately, she was able to stay at the same, nice facility but now had a roommate. 

The stories I heard about my grandmother as a mother to my mom and her sisters were not the most endearing, but I can’t imagine she would have wanted to create the financial and family strife that still lasts to this day.  

I am now 45 years old. It has been over 25 years since her passing, and although it has improved through the years, the raw emotions and financial decisions made while she was in long-term care still impact the relationship between my mom and her two sisters. 

Over my 20-year career, I’ve had countless conversations with wealthy families that can afford the costs of long-term care (LTC). The ones that have a long-term care plan in place, whether formally funded with long-term care insurance or a thoughtfully crafted plan with their financial advisor, fare far better than those that don’t. 

What do I mean by “fare better?” It has nothing to do with having enough money to pay for care, and everything to do with the decisions around money and adhering to the parent’s wishes. You can have $10,000,000 of cash in the bank and still not be prepared.  

Although unintentional, you can still create tension amongst your loved ones. If you don’t have a thoughtful and documented plan, you’re setting your loved ones up for distress. Establishing your plan is easier than you think.  

Here are two approaches if you haven’t planned yet: 

1. Document Your Self-Insured LTC Plan 

Meet with your financial advisor. Ask them to develop an appropriate plan for your situation. If they gloss over this topic and say you have enough to self-insure, it may be time to find a new advisor.  

A plan can be as simple as carving out a portion of an investment portfolio and earmarking it for long-term care. 

Pro-Tip: If you don’t have long-term care insurance, it is ok. Make sure your plan is documented and your wishes are known to alleviate confusion and distress if care is needed. 

2. Secure Long-Term Care Insurance 

The LTC insurance landscape has changed considerably. Traditional LTC insurance is generally a thing of the past, and most policies today are now linked with a life insurance policy often referred to as “Hybrid LTC” or “Life Insurance with an LTC Rider.”  

Your situation will determine which policy type is suitable for you. 

Pro-Tip: If you have old Whole Life policies that no longer fit into your overall planning goals, these are ideal to use as a potential funding source for long-term care planning. 

What to Know if You Have LTC Insurance 

If you have long-term care insurance already, my hat is off to you. I know you are frustrated with the premium increase letters you are receiving. Please know you are not alone as many insurance companies mispriced their policies.  

At this point, there is no use going back in time and determining how much you’ve paid into the policy. Do you do that with your car insurance or homeowners' insurance? Likely not.  

Instead, collaborate with your advisor and run the math. Do the economics of the increased premium still make sense? I would argue that in most circumstances they are still reasonable. I am in no way taking the side of the insurance companies with their rate increases but want to encourage advisors to think through LTC insurance as you would any other financial tool and evaluate the math here (i.e., premiums paid going forward vs. potential benefits). 

ProTip: Long-term care premium increase letters generally come with alternative options to reduce LTC benefits to lessen the blow of the increase. The options provided by the carrier are not always the best options available.  

Be sure to meet with your advisor to review your choices. You can write back to the insurance company to request alternatives that are more in line with your planning goals and premium tolerance.  

Regardless of how much money you have, please make your long-term care plan. Remember, you’re not doing it for you but for the people you love. Talk about it as a family. Document it with your advisory team. Make this your 2025 New Year’s Resolution! 

About the Author

G. Tate Groome, CFP®, CLU®, AEP®, CEPA® has been advising families and businesses on their personal life insurance, disability insurance, and long-term care matters since 2003. He is the author of the book, “The Best Policy, Managing Irrevocable Life Insurance Trusts; Getting to the Heart of the Matter.” He’s been named by Forbes as one of the Top Financial Security Professionals in the United States and by LifeHealth Pro as one of the “Top 20 Most Creative People in Insurance.” Tate is the successor partner to John Zimdars and has been working in the Wisconsin area since 2022. Tate is married to his wife Anna of 20 years and has three children. Tate can be reached at tgroome@coltongroome.com or www.coltongroomeinsurance.com.