Budgeting for healthcare costs in retirement by StAK Insurance Solutions

Planning for Long-Term Care Costs – Protect Your Savings & Your Choices

Prepare Before You Need It

Long term care planning in Illinois is about protecting your savings and your independence before you need care. At StAK Insurance Solutions, we help Illinois retirees prepare for home care, assisted living, and nursing facility costs so they can keep control of their future. Nearly 70% of people over 65 will need some form of long-term care during their lifetime, whether in-home care, assisted living, or a nursing facility for long-term care. These costs can be staggering, averaging $100,000 per year for nursing home care in Illinois.

At StAK Insurance Solutions, we help you plan ahead so you don’t drain your savings or lose control over your care options when the time comes.

Why Long Term Care Planning in Illinois Matters

Without a plan, you may face:

  • Rapidly Drained Savings: Long term nursing care can deplete retirement accounts within a few years.
  • Limited Choices: Relying solely on Medicaid may restrict your facility options.
  • Family Stress: Loved ones may have to make rushed decisions about your care.
  • Tax Implications: Selling assets quickly can trigger unnecessary taxes.

Planning early gives you more options and peace of mind.

Step 1: Understand What Long-Term Care Includes
  • Home Care: Skilled nursing, physical therapy, or home health aide visits.
  • Assisted Living: Residential setting with help for daily activities like bathing and meals.
  • Nursing Homes: long term care, such as 24-hour skilled medical care for more complex needs.
  • Memory Care: Specialized facilities for Alzheimer’s or dementia patients.
Step 2: Estimate Potential Costs

Long-term care costs in Illinois (2025 averages):

Type of Care Monthly Cost Annual Cost
Home Health Aide $5,700 $68,400
Assisted Living $4,600 $55,200
Nursing Home (Semi-Private) $7,900 $94,800
Nursing Home (Private Room) $9,300 $111,600

We use these figures to build realistic projections into your retirement plan.

Step 3: Explore Funding Options

Using savings or investments. Works best for those with significant assets but risks depleting inheritance or liquidity.

Traditional Long-Term Care Life Insurance

Pays daily/monthly benefit for long term care costs. Premiums can be high but protect savings.
For trusted insights on how traditional long-term care insurance works, visit the American Association for Long-Term Care Insurance, a leading national resource for consumer education and industry updates.

Hybrid Life + LTC Policies

Combine permanent life insurance with long-term care benefits, if you never use LTC, beneficiaries receive a death benefit.

Annuities with LTC Riders

Provide income streams that double or triple during long-term care events.

Step 4: Plan for Medicaid Eligibility

Medicaid can cover nursing home care but has strict asset limits.

  • We explain spend-down rules and look-back periods.
  • We coordinate with attorneys if trusts or asset protection strategies are needed.

Planning early avoids last-minute crisis planning.

Step 5: Consider Tax Advantages
  • LTC Premium Deductions: Premiums may be tax-deductible within IRS limits.
  • HSA Funds: Can be used tax-free for qualified LTC premiums.
  • Hybrid Policies: Can provide tax-free benefits when used for care.

Common Mistakes to Avoid

  • Waiting Too Long: Premiums rise and health issues can make you uninsurable.
  • Assuming Medicare Will Pay: Medicare covers only short-term skilled care, not custodial care.
  • Ignoring Inflation Protection: Costs may double in 20 years — choose policies with inflation riders.
  • Failing to Include Family: Planning together prevents future conflict.

How We Help

  1. Needs Assessment: Estimate your potential care needs and preferences.
  2. Cost Projections: Show realistic scenarios with inflation-adjusted costs.
  3. Plan Comparison: Compare standalone LTC, hybrid life, and annuity solutions.
  4. Implementation: Help apply, coordinate underwriting, and integrate coverage into your retirement plan.

Call to Action

Don’t wait until it’s urgent.
We’ll build a proactive plan that protects your assets, gives you options, and reduces stress for your family.

Call Now: (309) 453-6546
Schedule Your Long-Term Care Planning Session

    Long-Term Care Planning FAQs

    When is the best time to buy LTC coverage?

    Generally between ages 50–65, before premiums rise sharply and health issues make approval difficult.

    What if I never need care?

    Hybrid policies ensure your premiums aren’t wasted — unused benefits are paid as life insurance.

    Does Medicare cover nursing homes?

    Only for short-term skilled care (up to 100 days) after hospitalization — not long-term custodial care.

    Can I protect assets from nursing home spend-down?

    Yes — early planning with trusts and proper legal guidance can protect part of your estate.