Healthcare expenses are inevitable. From a client’s first paycheck, when Medicare deductions begin, to their final month of life, when Medicare Part B premiums are taken from Social Security, healthcare is a constant financial reality. And while Medicare covers many costs, it doesn’t cover everything—particularly Long-Term Care (LTC), a critical expense often overlooked.

Even with the latest 2025 estimate by Fidelity Investments, most Americans underestimate the full scope of planning required. Why? Because Fidelity’s figure, like every headline before it, excludes Long-Term Care. That omission leaves a gaping hole in the conversation, despite the reality that for most people, the need for care is not an “if,” it’s a “when.”

The Missteps of Long-Term Care Planning

Despite an aging population and the undeniable fact that Medicare and health insurance exclude LTC services, too many Americans—and too many in the advisory community—still fail to prioritize planning for it. And when it is addressed, it’s often reduced to nothing more than a line item on a budget, ignoring the broader reality that LTC is as much an emotional and logistical challenge as it is a financial one.

Compounding the problem, advisors cling to “average need” assumptions and industry soundbites that gloss over individual circumstances. But when it comes to care, no one is average. Each client’s health, family dynamics, and resources shape a unique risk profile. That’s why tools like the HALO Assessment matter, cutting through the illusion of averages and providing a personalized, data-driven picture of projected needs and costs.

Why Every Client Needs Formal LTC Planning

Relying on Family or Friends:   When clients lack planning, their families often become the default caregivers. This can impose severe emotional, financial, and physical burdens, disrupting lives and creating stress for everyone involved. Families may step up, but at what cost to their well-being and relationships?

Relying on Government Programs:  Clients with limited resources may find themselves relying on Medicaid, a path fraught with challenges. Medicaid qualification often requires a “spend-down” of assets, which can be financially and emotionally draining. Clients should seek professional guidance from estate or elder law attorneys to understand their options and prepare for this eventuality.

Going It Alone (Self-Funding):  Self-funding is often viewed as the easiest option, but without a structured plan, it can quickly spiral into financial disaster. Clients must understand that “self-funding” without preparation leaves them vulnerable to mismanagement, taxes, market corrections, and other risks. The advisory community should help clients consider the pitfalls of going it alone before employing a self-funding strategy without actual planning.

Risk Mitigation Through Insurance:  Insurance-based LTC solutions provide one of the most efficient and effective ways to mitigate the financial risks of care. By transferring the cost burden to an insurer, clients can secure a predictable, tax-advantaged solution that protects their assets and gives their families peace of mind.

A Structured Approach Brings Confidence

Long-Term Care Planning is too important to leave to chance. The advisory community is responsible for making LTC planning mandatory for every client. Incorporating a structured, repeatable process ensures clarity, eliminates uncertainty, and helps clients make informed decisions.   At its core, there’s a crucial distinction: clients must plan for care, not just pay for it. Writing a check does nothing to solve the questions of who will provide care, where it will be delivered, and how decisions will be made under stress. Planning is about control, coordination, and protecting families. Paying is only one part of the equation.

By addressing the emotional, financial, and logistical challenges of care, advisors can provide clients with a roadmap for the future—one that preserves choice, reduces chaos, and safeguards relationships. That’s the difference between leaving clients exposed and giving them true security.  And that’s why the conversation must be elevated from optional, negotiable, or something to get to “later” because the mandatory nature of planning for Long-Term Care demands it.

It's time to embrace this concept and encourage clients to proactively plan for Long-Term Care.

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