Most people will need some form of long-term care after age 65 — and Medicare does not cover it. Buffer Insurance is an independent brokerage that compares traditional, hybrid, and short-term care policies from top carriers to protect your savings and your family.
Schedule a Free Consultation →Long-term care insurance is a policy designed to cover the cost of care when you can no longer perform everyday activities independently — things like bathing, dressing, eating, or moving around your home. It pays for services that health insurance and Medicare do not cover, giving you options and protecting the savings you have spent a lifetime building.
Covered services typically include nursing home care, assisted living facilities, memory care units for Alzheimer's and dementia, in-home care from licensed caregivers, and adult day care programs. Benefits are triggered when you cannot perform two or more activities of daily living (ADLs) or have a qualifying cognitive impairment.
This is one of the most dangerous misconceptions in retirement planning. Medicare only covers short-term skilled nursing — up to 100 days following a qualifying hospital stay, and only when you need skilled care like physical therapy or wound care. Medicare does not pay for custodial care, which is the type of ongoing help most people actually need. Without a dedicated long-term care policy, your retirement savings, your home, and your family's finances are at risk.
There is no one-size-fits-all long-term care policy. The right choice depends on your budget, your health, and how you feel about the trade-off between cost and guaranteed benefits. Buffer helps you compare all three approaches.
The original form of long-term care coverage. You pay annual premiums and receive benefits if you need care. If you never use the policy, the premiums are not returned — sometimes called "use it or lose it." Traditional policies typically offer the most LTC benefit per premium dollar.
Combines life insurance with long-term care coverage. If you need care, the policy pays LTC benefits. If you never need care, your beneficiaries receive a death benefit. Some policies also allow you to get your premium back. Addresses the biggest concern with traditional LTC — paying and never using it.
Provides a limited benefit period — typically 6 to 12 months of coverage. Designed for people who may not qualify for traditional or hybrid policies due to health conditions, or who want basic protection at a lower cost. Easier underwriting requirements make this accessible to more people.
The ideal window to purchase long-term care insurance is in your mid-50s to early 60s. At this age, you are young enough to qualify medically and lock in lower premiums, but close enough to retirement that planning feels relevant. Waiting too long increases both cost and the risk of being denied coverage entirely.
Lowest premiums available. Excellent health qualification rates. Ideal if you have a family history of conditions requiring long-term care. Lock in rates decades before you are likely to need coverage.
Lowest premiums, easiest qualificationThe most common age range for purchasing LTC insurance. Premiums are still reasonable, most people still qualify medically, and retirement is close enough that the need is clear. This is when most advisors recommend buying.
Best balance of cost and timingPremiums are significantly higher. Health conditions become more common, and denial rates increase. If you are in good health, coverage is still available — but waiting beyond this window makes it increasingly difficult and expensive.
Higher cost, stricter underwritingNot all long-term care policies are created equal. These are the most important features to compare when evaluating coverage. Buffer walks you through each one so you understand exactly what you are buying.
The maximum the policy pays per day or per month toward care. Choose a benefit amount that covers the cost of care in your area. National averages: $300+/day for a nursing home, $170/day for assisted living, $180/day for home health aides.
How long the policy will pay benefits — typically 2, 3, 4, 5 years, or unlimited. The average nursing home stay is about 2.5 years, but some conditions require much longer care. Longer benefit periods cost more but provide greater protection.
The waiting period (in days) before benefits begin — similar to a deductible. Common options are 30, 60, or 90 days. A longer elimination period lowers your premium but means more out-of-pocket cost before the policy starts paying.
Increases your benefit amount over time to keep pace with rising care costs. Compound inflation protection (3-5% annually) is the gold standard. Simple inflation grows linearly. Without inflation protection, your benefit may be worth far less when you actually need it.
Most people prefer to receive care at home. Check whether your policy covers in-home care at 100% of the daily benefit or at a reduced ratio (50-75% is common). Also verify if the policy covers licensed caregivers only or includes homemaker services.
Some policies offer shared benefit pools for couples — if one spouse uses less than their full benefit, the remaining amount transfers to the other. Couples discounts of 20-30% are common even without shared benefits. Ask about both.
Every year you delay purchasing long-term care insurance, your premiums increase — and your chances of qualifying decrease. The table below illustrates how age impacts the annual cost for a typical traditional LTC policy with a $200/day benefit, 3-year benefit period, 90-day elimination period, and 3% compound inflation protection.
| Age at Purchase | Est. Annual Premium (Single) | Est. Annual Premium (Couple) | Health Qualification |
|---|---|---|---|
| Age 50 | $1,500 – $2,200 | $2,400 – $3,500 | Very likely to qualify |
| Age 55 | $2,000 – $3,000 | $3,200 – $4,800 | Most applicants qualify |
| Age 60 | $3,000 – $4,500 | $4,800 – $7,200 | Denial rates increasing |
| Age 65 | $4,500 – $7,000 | $7,200 – $11,200 | Significant denial risk |
Unlike Medicare enrollment, long-term care insurance requires medical underwriting. Conditions like diabetes, heart disease, stroke history, Parkinson's, or early cognitive decline can result in denial — not just higher premiums, but a complete inability to get coverage at any price. Roughly 40% of applicants aged 60-69 are declined or offered modified terms. The window to get coverage is not unlimited.
Straightforward answers to the questions we hear most from people evaluating long-term care coverage.
Let Buffer compare long-term care policies from top carriers. We will walk you through traditional, hybrid, and short-term care options — and help you find the right coverage at the right price.
Schedule a Call with Taylor →Long-term care insurance is one piece of a complete retirement plan. Explore these related solutions to protect every aspect of your financial future.