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

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.

By Victoria Larson, RICP®

published 20 July 2025

in Features

An older woman has an unsure expression on her face as she looks at her laptop at her dining room table.

(Image credit: Getty Images)

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.

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Example: A healthy 59-year-old who funds a policy with $100,000 could secure $650,000 in LTC benefits by age 80, thanks to 3% compound inflation protection for life. Even if care is never needed, a $108,000 death benefit goes to heirs. Underwriting is often easier, too.

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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:

70% of individuals turning 65 today could face a long-term care event, according to LongTermCare.gov
According to the California Partnership for Long-Term Care, the cost of care could increase by at least 4.6% annually

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.

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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.

Hypothetical examples used are for illustrative purposes only.

Investment advisory services offered through Brookstone Wealth Advisors, LLC (BWA), a registered investment advisor and an affiliate of Brookstone Capital Management, LLC. BWA and (insert your DBA name here) are independent of each other. Insurance products and services are not offered through BWA but are offered and sold through individually licensed and appointed agents.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Victoria takes pride in being an independent and holistic financial adviser, offering clients the freedom to explore a universe of investment solutions tailored to their unique retirement goals. Victoria has held the Series 6 and 63 licenses and now holds the Series 65 securities license, along with life and health insurance licenses. With over 20 years of experience in the financial services industry, she specializes in crafting personalized retirement plans designed to protect, grow and optimize your wealth while aligning with your values and aspirations.