Planning by Decade

If a parent or in-law needs care, pay attention to the logistics: how was care arranged, who coordinated it, what did it cost, and what would have made it easier?

Ask your parents whether they have long-term care insurance, a hybrid life policy, or any plan for funding care. If they do not, understand what that means for your family — both financially and in terms of caregiving responsibility.

Manage chronic conditions aggressively. Diabetes, obesity, hypertension, and smoking are the leading predictors of future care needs — and of being declined for LTC insurance later.

Build an emergency fund and reduce high-interest debt. LTC planning options are much more accessible when your financial foundation is solid.

Execute a durable power of attorney and a healthcare proxy (healthcare power of attorney). These documents are essential regardless of age — and are the foundation of any care plan.

Draft or update your will. If you have minor children, name a guardian.

Read the Statistics and What It Costs pages on this site. Understand the rough probability that you will need care and what it costs in your state today.

Get quotes for traditional standalone LTC insurance and hybrid life/LTC policies. Compare them side by side: premium cost, benefit amount, inflation protection, elimination period, and what happens if you never need care.

Understand the underwriting process. LTC insurance requires a health application. Common disqualifiers include: current use of a cane or walker, cognitive impairment, recent cancer treatment, insulin-dependent diabetes, and several other conditions. Apply while you are healthy.

If you are married or partnered, evaluate couples' discounts on traditional LTC policies — they can reduce premiums by 20–30% for each spouse.

Ask your employer whether group LTC insurance is available. Group plans sometimes offer simplified underwriting (no health questions) during open enrollment windows.

Estimate your retirement income: Social Security, pensions, 401(k)/IRA distributions. Understand the gap between your expected income and the cost of care in your state. That gap is what you are planning to fill.

If you have a Health Savings Account (HSA), understand that it can be used tax-free to pay LTC insurance premiums (up to IRS age-based limits) and qualified long-term care expenses. Maximize contributions if eligible.

Review your home equity. For many people, the home is their largest asset. Understand how it could be used — sale, HELOC, or a HECM reverse mortgage — if needed for care funding.

Update your durable power of attorney and healthcare proxy. Make sure your named agents are still appropriate and willing to serve.

Consider a living will (advance directive). Document your preferences for end-of-life care, including whether you want aggressive intervention, comfort care only, or something in between.

Have an explicit conversation with your spouse or partner about preferences: where would you want to receive care (home, assisted living, nursing home)? Who would you want as your primary caregiver? What are your financial boundaries?

If you have not purchased LTC insurance or a hybrid policy, your early 60s are likely your last practical opportunity. Premiums for a 65-year-old are typically 50–100% higher than for a 55-year-old with the same benefit. Health disqualification rates rise sharply after 65.

If you already have a traditional LTC policy, review it: Is the benefit amount still adequate given cost inflation? Do you have an inflation rider? Has the insurer raised premiums? Consider whether to reduce benefits to keep the policy affordable rather than lapsing it entirely.

If your assets are modest (under $200,000 in liquid savings), consult an elder law attorney about Medicaid planning. The 5-year look-back period means any asset transfers must happen at least 5 years before a Medicaid application. Early planning preserves more options.

Understand your state's Medicaid Partnership Program. A Partnership-qualified LTC policy allows you to protect assets equal to the benefits paid — a significant advantage for middle-income households.

Walk through your home with aging-in-place in mind. Are there steps at the entrance? Is the primary bedroom on the ground floor? Is the bathroom accessible? Modest modifications now (grab bars, better lighting, lever door handles) are far cheaper than emergency renovations later.

Research your local care options: home health agencies, adult day programs, assisted living facilities, and nursing homes in your area. Knowing what exists before you need it reduces panic decision-making later.

Decide your Social Security claiming strategy. Delaying to age 70 increases your benefit by approximately 8% per year — a higher guaranteed income stream reduces the amount of assets needed to fund care.

Tell your adult children where your important documents are: will, power of attorney, healthcare proxy, insurance policies, financial account information. They should not have to search for these in a crisis.

Discuss your care preferences explicitly with your children or other likely caregivers. Do not assume they know what you want. A family meeting — even an uncomfortable one — prevents much larger conflicts later.

Review and update all legal documents: will, trust (if any), power of attorney, healthcare proxy, advance directive, and beneficiary designations on retirement accounts and life insurance.

Conduct an honest annual assessment of your functional abilities: Can you drive safely? Manage your medications? Handle your finances? Prepare meals? These are early warning signs of declining independence, and catching them early allows for gradual, planned transitions rather than emergency ones.

Ask your doctor to screen for cognitive changes. Early detection of mild cognitive impairment allows time to update legal documents, make financial decisions, and communicate preferences while you still have full capacity.

If you have LTC insurance, locate your policy and understand the benefit trigger: typically, inability to perform 2 of 6 Activities of Daily Living (ADLs) or a cognitive impairment diagnosis. Know the elimination period (the waiting period before benefits begin — commonly 90 days) and what documentation your insurer requires.

File a claim as soon as you qualify — do not wait until the situation is dire. The elimination period clock does not start until you file. Many policyholders delay filing and lose months of benefits they paid for.

Reassess your living situation annually. Is your home still appropriate for your needs? Would a smaller home, a continuing care retirement community (CCRC), or proximity to family serve you better? Moving while you are healthy and can make the decision yourself is far preferable to moving in a crisis.

If you want to age in place, build your support network now: identify a primary care physician who does home visits, establish relationships with local home care agencies, and know your neighbors.

Simplify your finances. Consolidate accounts, automate bill payment, and consider whether a trusted family member or professional fiduciary should have co-signer access to accounts. Financial exploitation of older adults is common — simplification reduces vulnerability.

If you own a home with significant equity and need income for care, evaluate a HECM reverse mortgage. The line-of-credit option grows over time and can serve as a long-term care reserve. See the Ways to Pay page for a worked example.

If family members are providing care, acknowledge the economic cost. An adult child who reduces work hours to provide care is making a significant financial sacrifice. Discuss compensation, respite, and limits explicitly — caregiver burnout is one of the most common reasons care arrangements break down.

Designate a single point of contact for your care coordination — one person who knows your wishes, has access to your documents, and can communicate with healthcare providers. This person does not have to do everything; they just need to know everything.

Ensure your advance directive is current and accessible. Give copies to your primary care physician, any specialists, your healthcare proxy, and keep one in your home (on the refrigerator is a common recommendation — emergency responders know to look there).