You’re Gen X. You’re not planning to rely on family to help you through the no-go years of life. That independent mindset that’s served you is precisely what you need for thoughtful long-term care planning. The good news is that starting now gives you the best options and the most control over your future.
The Numbers That Matter to You
At 55, long-term care insurance might cost you $210 monthly for a $300,000 benefit pool. Wait until 65? That same coverage jumps to $375-$500 monthly. The advantage of acting now? You lock in lower premiums while you’re healthy and have the broadest range of coverage options.
But here’s the key insight: this is about more than the money. It’s about maintaining the control and independence you’ve worked decades to build.
Your Independence Strategy: Maximum Control, Smart Planning
Scenario 1: No Planning – You’re in your no-go years, need daily assistance, and are burning through $120,000 annually for quality care. Your retirement savings disappear in five years, leaving you dependent on what little Medicaid will cover.
Scenario 2: Smart Gen X Planning – You locked in a $400,000 benefit pool at 52 for $185 monthly. During your no-go years, that coverage provides 3-4x leverage when used for qualified care. You choose your care setting, your caregivers, and your schedule. Your retirement assets stay intact, protecting loved ones who depend on them and their legacy.
Why Acting Now Gives You the Best Advantages
Health Qualification: Starting while you’re healthy gives you access to the best rates and most comprehensive coverage options. You’re in control of the timing rather than waiting until health issues limit your choices.
Premium Leverage: The financial leverage these policies provide is most substantial when you start early. A policy purchased at 52 might provide 4x leverage on premiums paid, while the same coverage at 62 provides about 2.5x leverage.
Benefit Pool Growth: Many policies include compound growth options that significantly increase your available benefits over time. Starting early maximizes the power of compounding to work in your favor.
What Actually Works for Gen X
Traditional LTC Insurance: Best value if you’re healthy and want maximum coverage flexibility. Expect $150-$200 monthly in your early 50s for substantial benefit pools.
Hybrid Life/LTC Policies: Higher upfront cost but guarantees some benefit even if you never need care. These policies create a dedicated bucket of money that provides significant leverage for long-term care expenses.
A Straightforward Approach
If you haven’t planned to comfortably write a $10,000 monthly check for care without touching your retirement accounts, you may need coverage. The best part? Acting now means you’re planning from a position of strength—while you’re healthy, your income is substantial, and you have the most options available.
Three Smart Steps to Get Started
- Health Assessment: During your annual physical, ask about diabetes risk, cardiovascular health, neurological conditions, and other factors that contribute to the need for care in the future.
- Family Reality Check: Have an honest conversation with your spouse about care expectations and whether relying on family members is realistic. Having family members provide care may have a substantial impact on their financial future.
- Coverage Analysis: Understand your options between traditional LTC insurance, hybrid life/LTC policies, and asset-based solutions. Each has different advantages depending on your health, assets, and family situation.
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Important Disclosures:
This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
Securities are offered through LPL Financial, Member FINRA / SIPC. Investment advice offered through Enduring Wealth Advisors®, LLC, a registered investment advisor. Enduring Wealth Advisors®, LLC and Enduring Wealth, Inc are separate entities from LPL Financial.
All information is believed to be from reliable sources; however, LPL Financial and Enduring Wealth Advisors® make no representation as to its completeness or accuracy.
Research and development of this article included the use of artificial intelligence tools.
Edited by Mark R Tracy, MBA, CFP® & Mona Hurtado from Enduring Wealth Advisors® in collaboration with Grammarly.