Long-Term Care
Helping retirees prepare for future healthcare needs
A thoughtful plan for long-term care can protect your retirement savings and give you more control over your future options.
Preparing for Long-Term Care Costs
Planning ahead to protect savings and choices
A large percentage of retirees, that is 72% of people of over 65, will require some form of long-term care, whether it’s in-home assistance, assisted living, or a nursing facility. The national average nursing home costs can easily reach $6,000–$8,000 per month, and Medicare only covers limited rehabilitation stays, leaving most of the expense to personal savings. Without a plan, these costs can quickly drain the assets you worked so hard to build. At Iron Point Retirement Solutions, we help retirees understand their options, from insurance to hybrid solutions to self-funding strategies. By integrating long-term care planning into your overall retirement strategy, we aim to give you confidence and control over future healthcare decisions.
Strategies for Managing Long-Term Care Risk
Exploring insurance, hybrid plans, and self-funding
Traditional Long-Term Care Insurance
These policies provide a daily or monthly benefit for care if you’re unable to perform basic activities of daily living or have a cognitive impairment. They help protect your assets and offer more choice in care facilities, though premiums can be high and not everyone qualifies.
Hybrid Life and Annuity Solutions
Newer options combine life insurance or annuities with long-term care riders, letting you use benefits for care if needed or pass remaining funds to beneficiaries. These plans offer flexibility and peace of mind without the “use it or lose it” concern of traditional LTC insurance.
Medicaid and Self-Funding Approaches
Some retirees choose to earmark personal assets to self-insure for potential care costs, while others rely on Medicaid as a last-resort safety net. We help you understand Iowa’s Medicaid rules, including asset limits, and evaluate whether self-funding or a combination strategy is right for you.
Cost Planning and Asset Protection
We assist in estimating future care costs and aligning them with your overall retirement income strategy. For those interested in protecting assets, we can coordinate with estate attorneys to explore trust options as part of a comprehensive plan.
Why Plan for Long-Term Care Now
Protecting savings and ensuring flexibility in retirement
Preserves Your Retirement Assets
Planning ahead helps prevent a long-term care event from depleting the savings you worked hard to build.
Gives You More Care Options
A funded plan allows you to choose preferred care settings rather than relying solely on Medicaid facilities.
Provides Peace of Mind for Family
Having a strategy in place relieves loved ones of financial uncertainty and tough last-minute decisions.
Questions About Long-Term Care Planning
Helping retirees understand their options
How likely am I to need long-term care in retirement?
Studies show that most retirees will need some level of long-term support, whether at home or in a facility. Planning for this possibility helps you avoid financial strain and ensures you have more control over your care. Even a short stay in assisted living or a nursing facility can impact your savings without preparation.
Does Medicare cover nursing home or assisted living costs?
Medicare covers only limited skilled nursing care for rehabilitation after a hospital stay and does not pay for custodial long-term care. That means ongoing assisted living or nursing home expenses are typically out-of-pocket unless you have insurance or qualify for Medicaid. Understanding these limits is essential to creating a comprehensive care plan.
Do I really need long-term care insurance?
Long-term care insurance can be an effective tool to protect assets and secure access to quality care, but it isn’t right for everyone. Health qualifications, premium costs, and your overall retirement assets all factor into the decision. We help evaluate whether traditional or hybrid policies fit your needs and compare them to self-funding strategies.
What’s the difference between LTC insurance and hybrid plans?
Traditional long-term care insurance pays only if you need care and offers the most robust coverage. Hybrid policies tie coverage to life insurance or annuities, letting unused benefits pass to beneficiaries. Many Iowa retirees like hybrids because they provide value whether care is needed or not, making them a flexible option.
When is the best time to plan for long-term care?
The ideal time to explore long-term care strategies is in your 50s or early 60s while premiums are lower and health qualifications are easier to meet. However, even later in retirement, there are ways to prepare and protect assets. Starting sooner gives you more choices and reduces the risk of last-minute, costly decisions.