I Have Plenty of Money: Why Do I Need a Long-Term Care Plan?

Victoria Larson |
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Finance
Investments
Lifestyle

Originally featured on Kiplinger. Read the full article here: 
I Have Plenty of Money: Why Do I Need a Long-Term Care Plan? | Kiplinger

 

Long-term care planning, whether through insurance or self-funding, is crucial not only for financial protection but also to preserve family relationships and reduce the emotional and logistical burdens on loved ones.

It's a question we hear often from financially confident retirees: "I've done well. I have more than enough saved. Why would I need a long-term care plan or long-term care insurance?"

We get it. For many, traditional long-term care (LTC) insurance feels like a gamble — you pay in and hope you never use it. If you don't end up needing care, it can feel like wasted money.

Then there are the asset-based options — LTC benefits built into life insurance or annuity contracts. These plans can offer significant value.

But some still hesitate, thinking that money might perform better in the market. And many don't have a plan for their long-term care, period — with or without insurance.

 

Taking care of your spouse

Even couples with substantial assets can face tough choices when one partner needs care.

Without a plan:

  • The healthy spouse may have to cut back their lifestyle or dip into savings
  • Caregiving often falls on them — physically, emotionally and financially

Caregivers often feel sadness, anxiety and guilt, combined with the grief of watching a partner change, according to LifeCare Advocates.

And it's not just emotional. The landmark Caregiver Health Effects Study found caregiving strain can be deadly: Spouses under stress were 63% more likely to die over four years than those who weren't caregiving.

The physical toll is real:

  • 46% of caregivers say it impacts their health
  • Fatigue, sleep loss and injuries are common
  • Many skip their own doctor visits due to time constraints and stress
 

Protecting your kids

Many people say, "If something happens, my kids will help." And they probably will.

But have you thought about what that really means?

Fifty-three million Americans are unpaid caregivers, often while holding down full-time jobs, according to insurance company Guardian.

Most caregivers are in their 30s, 40s and 50s, balancing careers, caregiving and raising children. Many belong to the "sandwich generation," supporting aging parents and kids at the same time.

Ask yourself:

  • Should your daughter reduce her hours — or risk her career — to help with your care?
  • Should your son miss his child's soccer games to coordinate home health visits?
  • How will stepping back from work affect their ability to save for retirement or college?
 

Caregiving hits hard

Consider these statistics, from Guardian Life Insurance's Standing Up and Stepping In study:

  • 20% of working caregivers have taken a leave or demotion
  • 27% provide 30-plus caregiving hours weekly, yet most don't feel safe discussing it at work
  • Only 1 in 4 report good mental health, and nearly half say caregiving strains their relationships and quality of life

And the costs keep climbing:

Many parents hope to leave a financial legacy, but unintentionally leave a logistical and emotional burden.

Sometimes families delay professional help, not because they can't afford it, but to protect an inheritance. That can create tension, especially when caregiving falls unevenly among siblings.

So ask yourself:

  • Would you rather leave your children money or memories?
  • Do you want them to be with you — or to manage you?

A care plan — whether self-funded or insured — doesn't just protect assets. It protects your kids' health, relationships and future.

When care is prefunded, it's easier to say yes to help — without guilt or second-guessing. Your loved ones aren't scrambling. You've already made the hard decisions.

 

Two different outcomes

For me, long-term care insurance gave my dad the freedom to live life on his terms. He knew his care was covered, which meant my mom could continue to be his wife — rather than becoming his nurse — and their savings could be used for joy, not just medical bills.

For my colleague Caprice, an insurance professional, it was different. When her mom needed care, there was no plan. Caprice and her sister stepped in, each writing monthly checks to cover assisted living. It was done with love, but it came with stress and sacrifice.

Two different families. Two different outcomes. Same desire — to care for the people we love with dignity, and without regret.

 

Final thought

You may never need long-term care. But if you do, wouldn't it be better to have a plan so that your loved ones can focus on being there, not doing everything?

Even if you have plenty of money to pay for care, you still need to develop a plan so that everyone is on the same page and knows where to turn for help.

This isn't just about whether you can afford to self-insure. It's about whether you want to.

A good adviser can help you:

  • Understand today's and tomorrow's care costs
  • Assess your personal risk
  • Explore whether traditional or asset-based coverage fits your goals

More than that, they'll help you build a plan that:

  • Preserves your relationships
  • Protects your lifestyle
  • Keeps your options open

Because when the time comes, your spouse should stay your partner, your kids should stay your kids, and your legacy should stay intact.

It's not just about you. It's about everyone who loves you.

Caprice Torrisi, a licensed insurance professional at Vitality Investments, contributed to this report.

 

About the Author 

Victoria Larson, RICP® is an independent, fiduciary financial advisor and founder of Vitality Investments. With over 20 years of experience in the financial services industry, she specializes in holistic, retirement-focused planning. Her work helps clients protect, grow, and use their assets in ways that align with their goals and values. Victoria partners closely with individuals and families to build income security, minimize taxes, and prepare for life’s financial uncertainties.

Hypothetical examples used are for illustrative purposes only.

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