One of the greatest risks to your estate plan is the chance of incurring substantial long-term care (LTC) costs. These costs, for services such as nursing home stays or home health aides, can quickly erode the savings you want to pass on to your family after your death. One solution is to purchase an LTC insurance policy.

Understanding the terms

An LTC policy’s terms dictate the amount of benefits you’ll receive each day or month, up to a defined lifetime maximum or number of years. These limits depend on the type of care provided, such as in-home care or a nursing facility.

LTC policyholders are typically subject to a waiting period of 30 to 180 days before being eligible for benefits (90 days is generally the norm). Important: The shorter the waiting period, the more expensive the policy. Similarly, you can expect to pay more for a policy with higher maximum benefits.

LTC policies generally provide benefits when you can’t perform multiple basic activities of daily living — including bathing, dressing, eating, transferring and managing incontinence — or if you experience cognitive impairment. Generally, once benefits start, premium payments stop. But if you stop paying on the policy first, you usually forfeit any future benefits. Be aware that coverage may be affected by several factors. For example, you may not qualify for coverage because of a pre-existing condition.

What to consider before buying insurance

Factors to consider before purchasing an LTC insurance policy include your:

Financial situation. Do you have the funds to pay for long-term care assistance without jeopardizing your overall financial situation? Take an objective look at your entire financial picture.

Estate planning objectives. An LTC policy may make sense if preserving wealth to pass on to your family is a primary estate planning objective.

Age and health. As you grow older, LTC insurance premiums may rise. Additionally, if you have a pre-existing condition, you may pay higher rates or even be denied coverage. Applying early may increase the likelihood that you won’t be denied coverage and that you’ll pay lower rates. But you’ll probably be paying premiums for more years.

There might be ways to obtain coverage without buying a policy privately. For instance, you may be able to participate in a group policy offered by your employer or another affiliation. This can be especially helpful if health conditions would otherwise cause insurers to charge you high premiums or deny you coverage.

Planning for your (and your family’s) future

An LTC insurance policy offers financial protection and peace of mind. With the escalating costs of extended care, this coverage can also allow you to leave more to your family. As with any major financial decision, carefully compare policy options, costs and benefits to find the best fit for your needs and goals. We can help you evaluate what’s appropriate for your situation.

© 2026