Long-Term Care Insurance – Plan for Extended Care
The Need for Long-Term Care Planning
The cost of extended care continues to rise. In Illinois, the average price of a private nursing home exceeds $80,000 per year, and similar costs are common in states like California and Arizona. Medicare only covers limited short-term stays following hospitalization, while Medicaid generally requires spending down most assets before coverage begins. Spectrum Insurance Services, led by Jerry McCullough, helps families prepare for these realities with practical long-term care strategies that preserve independence and protect financial stability.
Understanding the Basics
Traditional vs Hybrid Policies
Traditional LTC Insurance
A stand-alone policy designed specifically for long-term care. It pays a daily or monthly benefit when care is needed, covering services like home health aides, assisted living, or nursing homes. These plans usually cost less upfront than hybrid policies, but if care is never needed, benefits don’t carry over to beneficiaries.
Hybrid LTC Policies
These combine life insurance or an annuity with long-term care benefits. If you need care, the policy accelerates benefits to cover costs. If you don’t, it either provides a death benefit (life insurance) or allows you to retain access to account value (annuity). Hybrids are popular with clients who want flexibility—knowing their premiums won’t “go to waste” if care isn’t required.
Choosing the Right Coverage
Key factors to consider include:
- Benefit amount: How much coverage per day or month, ideally matched to local care costs.
- Benefit period: How long benefits last, such as 3 years, 5 years, or lifetime.
- Inflation protection: Critical for younger buyers to keep pace with rising care costs.
- Elimination period: The “deductible in time,” often 90 days before benefits begin.
Jerry breaks down each element in plain language, helping clients balance coverage with budget.
Jerry’s Approach to LTC Planning
Planning for long-term care is a deeply personal decision. Jerry takes the time to learn about your family’s health history, financial picture, and care preferences. If a full policy feels out of reach, Spectrum can explore partial coverage strategies, such as covering half the projected cost and self-funding the rest. The goal is to provide realistic solutions that protect both assets and loved ones.
Secure Peace of Mind for the Future
The best time to plan is well before care is needed—ideally in your 50s or early 60s. A personalized consultation helps you compare costs, evaluate policy options, and decide what’s right for you. Spectrum Insurance Services is here to make those choices clearer and easier.
