If you’re like most retirees, the thought of needing long-term care someday is unsettling. Whether it’s a nursing home, assisted living, or home health aide services, long-term care is expensive—and unfortunately, it’s not covered by Medicare.

That’s why it’s one of the biggest financial concerns for seniors. It’s unpredictable, costly, and often emotionally overwhelming—not just for you, but for your loved ones as well.

The good news? With a little planning and awareness of programs available in New Jersey, you can protect yourself and your family from the financial strain that often accompanies long-term care needs. Let’s break down the key facts, concerns, and strategies—including how the New Jersey Partnership for Long-Term Care Insurance can play an important role in your plan.

Why Long-Term Care Planning Matters

Here’s the reality:

• Nearly 70% of people over age 65 will need some form of long-term care.
• The average annual cost of a private room in a New Jersey nursing home is over $150,000.
• Medicare does not cover long-term custodial care—only limited, short-term skilled care under specific conditions.

Without proper planning, the costs of long-term care can quickly drain retirement savings and even force families to make difficult financial and emotional decisions.

What Are Your Options for Paying for Long-Term Care?

1. Self-Funding

Some retirees plan to pay out of pocket. If you have sufficient assets and prefer flexibility in how and where you receive care, this can work—but keep in mind, long-term care costs can climb quickly and unpredictably. Even a well-funded retirement portfolio can feel the pressure of $10,000–$15,000 in monthly care costs over several years.

2. Medicaid

Medicaid will pay for long-term care—but only after you spend down your assets to qualify. That means depleting most of your savings and having little left for your spouse or heirs. For many, this is a last resort.

3. Long-Term Care Insurance

A traditional long-term care insurance policy can help cover the costs of in-home care, assisted living, or nursing home stays. It offers financial protection and flexibility, but premiums can be high—and the older you are when you apply, the more expensive (or medically difficult) it becomes to qualify.

4. Hybrid Policies (Life + LTC)

These are life insurance policies with long-term care riders. They offer benefits whether or not you need care, and often come with guaranteed premiums. Many retirees prefer them to standalone LTC policies because the benefits aren’t “use it or lose it.”

New Jersey’s Partnership for Long-Term Care Program

One of the best-kept secrets in retirement planning is the New Jersey Long-Term Care Partnership Program. It was created to encourage residents to plan for long-term care through qualified insurance policies that offer a special benefit: asset protection.

Here’s how it works:

• If you buy a Partnership-qualified long-term care policy and use those benefits for care, you can apply for Medicaid without spending down your assets—up to the amount the insurance policy paid in benefits.

For example:

• If your policy pays $300,000 in benefits, you can keep $300,000 of your assets and still qualify for Medicaid if you need more care after your policy runs out.

Key Benefits of the NJ Partnership Program:

• Protects your hard-earned savings from Medicaid spend-down rules.
• Encourages personal responsibility by rewarding those who plan ahead.
• Offers peace of mind knowing that you won’t have to impoverish yourself or your spouse to qualify for care.

To participate, the policy must meet specific state requirements—including offering inflation protection. Not every LTC policy qualifies, so it’s important to work with an advisor who understands the program.

When Should You Plan for Long-Term Care?

The best time to consider your options is in your 50s to early 60s. Why?

• Premiums are more affordable.
• You’re more likely to qualify medically.
• You can make decisions on your terms—not in a crisis.

Waiting until you’re already in your late 60s or 70s can drastically limit your options—or make them unaffordable.

How to Get Started

1. Evaluate your risk – Consider your family health history, current health, and lifestyle. Longevity and chronic illness increase the likelihood of needing care.
2. Talk with your financial planner – We help clients model various long-term care scenarios to understand the potential impact on their savings and legacy.
3. Explore insurance options – A good policy should be tailored to your needs, budget, and goals. Make sure to ask whether a policy is NJ Partnership-qualified.
4. Have the family conversation – Discuss your wishes for care with your spouse and children. Planning ahead can reduce the stress and confusion that often accompanies care decisions later on.

Final Thoughts

Long-term care planning isn’t fun—but it’s necessary. The risk of needing care is high, and the financial consequences can be severe. The New Jersey Partnership for Long-Term Care offers a unique way to protect your savings and ensure you receive the care you deserve—without putting your family or your retirement at risk.

Don’t wait for a health event to force your hand. Take the time now to understand your options, put a plan in place, and rest easier knowing you’re covered—whatever the future may bring.

If you’re not sure where to start or want to explore whether a Partnership policy fits your plan, let’s talk. Helping clients prepare for the unexpected is one of the most important things we do.