Eric Coons

Kaleidoscope Financial

The Link Between Long-Term Care and Life Insurance

As people age, the need for long-term care services becomes more likely. In fact, about 70% of people over age 65 will require some form of long-term care during their lives. Long-term care includes a range of services that help meet health or personal needs. It can be provided at home or in residential facilities like nursing homes.

Most people think long-term care is needed only when someone cannot perform activities of daily living (ADLs), such as eating, bathing, and dressing. But increasingly, experts recognize that many people also need help with instrumental activities of daily living (IADLs) such as meal preparation, housekeeping, and managing finances. Whether it helps with ADLs or IADLs, the cost of long-term care services can be significant. According to a recent study by Genworth Financial, the median price of a private room in a nursing home is over $100,000 per year – and that's just for one person!

Accelerated benefits rider

Fortunately, there are steps you can take to plan for and protect yourself from the high cost of long-term care. One option is to purchase a life insurance policy with an "accelerated benefits rider" that pays cash benefits if you need long-term care services. This type of rider can provide much-needed financial assistance to help cover long-term care costs. If you're retired or nearing retirement and haven't yet purchased life insurance, now may be the time to consider this important coverage. Tell your financial professional whether an accelerated benefits rider makes sense for you and your family.

Long-Term Care Insurance

Another option is to consider purchasing a long-term care insurance policy. Long-term care insurance helps cover some or all of the costs associated with long-term care services, such as nursing homes and home health aides. Depending on your particular needs and circumstances, this type of coverage may be important in helping protect your assets from potential depletion due to high long-term care costs. Your financial professional can help determine if purchasing a long-term care insurance policy is the right choice for you and your family.

Consider your family and loved ones.

No matter what steps you take to protect yourself and your family, it's important to remember that the need for long-term care affects you and those around you. If you have a spouse or other loved ones who your need for long-term care would financially impact, then discussing these issues with them and planning may be a wise decision. Your financial professional can help provide guidance on all of these topics and ensure that you are fully prepared if the need for long-term care arises.


Long-term care can be expensive, but with proper planning and the right mix of life insurance coverage and/or long-term care insurance, you can make sure that you and your family are protected. Talk to a trusted financial professional today about which steps you can take now to prepare for the possibility of long-term care.

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Eric Coons picture

Eric Coons

Kaleidoscope Financial

813 SW RainTree Lane

Suite 1

Bentonville, Arkansas 72712

(501) 743-1461

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