The increasing longevity in our society brings with it many advantages. However, with this longevity comes the need for long-term care, a topic that often gets pushed to the background until it becomes urgent. By that time, the options for affordable and comprehensive coverage can be limited, emphasizing the importance of planning for long-term care now. Let’s dive into the details and understand the crucial role that our financial planners at Black Hills Financial Planning can play in safeguarding your future.

The Reality of Long-term Care

As we age, the possibility of requiring some form of long-term care increases significantly. According to the U.S. Department of Health and Human Services, about 70% of people aged 65 or older will need long-term care at some point in their lives. With this staggering number in mind, planning ahead becomes imperative.

The Risk of Waiting

While it might be tempting to put off considering long-term care until later in life, there are inherent risks to waiting:

  1. Higher Premiums: Just like any other insurance, the longer you wait, the more expensive the premiums become. Premiums for long-term care insurance can be significantly higher for those in their 60s compared to those in their 50s.
  2. Denial of Coverage: As you age, the likelihood of developing health conditions increases. Insurance companies might deem you a high risk and deny coverage altogether.
  3. Limited Options: Over time, insurance providers may phase out certain benefits or introduce new policy restrictions. Starting early ensures a wider array of choices.

The Solution with Black Hills Financial Planning

Our expert financial planners at Black Hills Financial Planning offer tailored solutions to help you prepare for your long-term care needs:

  1. Whole Life Insurance with Riders: One of the creative ways to plan for long-term care is through whole life insurance with specific riders. These riders can provide benefits for chronic illness, terminal illness, or other long-term care needs. For instance, an Accelerated Death Benefit rider allows policyholders to access a portion of the death benefit while still alive if diagnosed with a terminal illness or certain chronic illnesses. This not only offers peace of mind for long-term care but also acts as a legacy for beneficiaries.
  2. Fixed Income Annuities: Annuities can be structured to provide a steady income stream during retirement. Fixed income annuities, in particular, can be customized to cater to long-term care expenses, ensuring that funds are available when needed without eroding other retirement savings.
  3. Long-term care insurance: Amidst the vast array of financial tools and products available for long-term care planning, one solution stands out due to its specificity: Long-Term Care Insurance (LTCI). Unlike regular health insurance, LTCI is designed to cover long-term services and supports, including personal and custodial care, whether in-home, at a community organization, or in other facilities.

    The advantages of securing LTCI include:

    • Tailored Care Coverage: It can be adjusted to cover home care, assisted living, adult daycare, respite care, hospice care, nursing homes, and Alzheimer’s care facilities.
    • Asset Protection: Instead of using your personal savings or selling assets to finance long-term care costs, LTCI can cover these expenses, preserving your wealth and legacy.
    • Flexible Payout Options: Depending on the policy, you can select how you want to receive your benefits, whether as a daily, weekly, or monthly amount.
    • Independence: It ensures you won’t be a financial burden on your loved ones. This autonomy is priceless, especially in the later stages of life.

    However, the nuances of LTCI policies, including their costs, benefit amounts, when and how you receive benefits, and potential eligibility requirements, emphasize the need for sound financial guidance. At Black Hills Financial Planning, our team is equipped to guide you through these complexities, ensuring you select the right LTCI policy tailored to your needs.

Final Thoughts

The journey of planning for long-term care may seem daunting, but with the right guidance and foresight, it becomes a strategic step in securing a comfortable future. At Black Hills Financial Planning, we pride ourselves on providing insightful, personalized financial strategies that ensure you and your loved ones are protected.

Considering the potential risks of waiting and the solutions available, there’s no better time than now to embark on this planning journey. Reach out to us today to learn more about how our team can assist you in safeguarding your future.


  1. U.S. Department of Health & Human Services. (2017). How Much Care Will You Need?
  2. American Association for Long-Term Care Insurance. (2019). 2020 Long-Term Care Insurance Price Index.
  3. Investopedia. (2020). Whole Life Insurance Explained.