A short story about long-term care costs

The Lincoln National Life Insurance Company

Lincoln Life & Annuity Company of New York


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What is long-term care?

Unlike healthcare, long-term care is assistance with simple everyday tasks, including eating, bathing, dressing, using the bathroom, helping with incontinence, and moving to or from a chair or bed.
The need for care could arise from an accident, illness, cognitive impairment, or the aging process. Unfortunately, some Americans think traditional healthcare or Medicare pays for long-term care costs, but that’s not the case.
Plan to cover what health insurance may not with a solution that gives you long-term care expense protection.

More than just nursing home care

Why should you have a plan?

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72% of Americans surveyed think they would not be able to provide adequate care for a loved one.*

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Financial reasons

Long-term care expenses continue to rise. Learn what various caregiving services cost around the nation.

> See the costs

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Retirement security

95% of advisors believe it’s important to consider long-term care expenses as part of your retirement plan.*

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If you think a healthy lifestyle could prevent you from needing long-term care, think again. Being healthy may lead to living a long life, and longevity increases long-term care risk.

Are you a loved one's caregiver? Get some helpful tips.PDF Icon

*Versta Research, "2017 LTC Marketing and Thought Leadership Research, Findings from Surveys of Advisors and Consumers,” February 2018.

Don't be swayed by
common misconceptions.

People tend to downplay their personal risk. About a third of Americans surveyed think they will need long-term care, while they are much more likely to believe their spouse will (40%) or a parent will (50%). The reality is the actual risk is higher for everyone.1


“It won’t happen to me.”

If qualified, Medicare may only cover a portion of skilled nursing costs up to 100 days. And Medicaid is only available to those with limited assets and income.2


“Medicare or Medicaid have me covered.”

Many Americans significantly underestimate long-term care costs, assuming the average annual cost of a private room in a nursing home is approximately $54,000 — roughly half the true cost.


“That’s what my savings are for.”

The burden of caregiving usually falls on the women in the family. The overall cost to a female caregiver is estimated to be nearly $325,000 due to lost wages and diminished working hours.3


“My family will take care of me.”

What women should know

Women are more likely than men to become family caregivers. They’re also more likely to need care.3, 4

66% pie chart
of all family caregivers are women.1
86% pie chart
of women caregivers say emotional challenges are among the most difficult aspects of providing long-term care.2
73% pie chart
of women would prefer home-based care if they needed it, but would feel reluctant to put that responsibility on their families, particularly their children.2
98% pie chart
of women agree that families ought to discuss plans for how to pay for long-term care before it’s actually needed, but only 42% have talked with their spouse.2
See the steps to a healthy financial future.

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When should you begin planning?

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Advisors believe that Americans should start the process at age 50,1 but there are affordable options that enable you to get started earlier.

What are your options?

Self-funding (paying for costs out-of-pocket)
  • You may use your money for any purpose.
  • Future inflation could potentially reduce your buying power.
  • Spending down your assets to pay for care could impact your retirement lifestyle and your legacy.
Lifetime annuities with long-term care riders
  • You may use your money for any purpose.
  • Future inflation could potentially reduce your buying power.
  • Spending down your assets to pay for care could impact your retirement lifestyle and your legacy.
Life insurance with accelerated benefits riders
  • You'll have legacy protection through a death benefit.
  • The riders accelerate the death benefit to cover qualified long-term care expenses, but this acceleration will reduce your legacy.
  • Long-term care benefits are either indemnity or reimbursement.
Hybrid life insurance/
long-term care combination products
  • You’ll have coverage for qualified long-term care expenses offering inflation protection options and extension of long-term care benefits.2
  • This choice gives you flexibility to repurpose benefits or get a return of premium if you never need care.
  • Underwriting may be streamlined to make getting coverage faster and easier.
Traditional long-term care insurance
  • You’ll have coverage for long-term care expenses.
  • Full underwriting is required.
  • Your premiums are not guaranteed, so you may have a low initial annual cost that ultimately may become more expensive.

1Versta Research, “2017 LTC Marketing and Thought Leadership Research, Findings from Surveys of Advisors and Consumers,” February 2018.

2Qualified long-term care expenses may be considered tax-deductible if they are necessary, diagnostic, preventative, therapeutic, treatment and rehabilitative services, and maintenance or personal care services needed by a chronically ill person, based on a plan of care prescribed by a licensed health care practitioner. To be considered chronically ill, the person is not able to perform at least two of the activities of daily living for a minimum of 90 days, or they require significant supervision due to severe cognitive impairment.

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Planning starts with a conversation.

Get ready to talk about your plan. Use this workbook to help you get started.
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Talk to your spouse or partner.

Make sure you’re on the same page.

Talk to your family.

Discuss your plans and their plans.

Talk with your advisor.

Find the right option to fit your financial plan.

Start talking now.

The best time to discuss this topic is when you’re young and healthy.

What’s important in a plan?

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Let your loved ones know your preferences. Think about where you want to retire. Find out what the costs of different types of services may be where and when you retire.

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While caregiving is very noble, long-term care can involve some of the most intimate aspects of daily living, and often untrained people may feel uncomfortable or unable to provide this type of support. Share your expectations with your loved ones and encourage them to discuss their intentions with you.

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Health-related decisions

Designate who has authority to discuss medications and treatment, and inform your physicians. Give your designee your doctors’ contact information.

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Let your loved ones know how you will cover the costs of care. Also establish who will have the authority to manage your finances, including paying the household bills.

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Legal matters

Make sure you and your loved ones have a living will, a current will, a durable power of attorney, and a power of attorney for healthcare.

Take the next step for your future.

Prepare to have a productive conversation with your advisor.

Answer the following questions and share your thoughts with them.

Feel confident about the years ahead.

Contact your advisor to discuss your plan.