Financial Fitness With The Money Doctor, June 7, 2026
Financial Fitness With The Money Doctor with Frances Rahaim, Ph.D. "The Money Doctor" New Ways to Protect Your Assets from Long-Term Care Costs Many people understand the importance of long-term care planning—but struggle with the idea of paying expensive premiums year after year for coverage they may never use. In this episode of Financial Fitness with The Money Doctor, Frances Rahaim, Ph.D., and co-host Jess Tyler explore alternatives to traditional long-term care insurance and discuss how some newer planning strategies may help protect retirement assets from catastrophic long-term care expenses. Topics include: - Why long-term care costs can threaten even well-prepared retirement plans - The difference between traditional long-term care insurance and newer asset-based approaches - Home care, assisted living, nursing home care, and Activities of Daily Living (ADLs) - Medicare and Medicaid misconceptions - Questions to ask before considering any long-term care strategyHow some solutions may allow unused assets to pass to beneficiaries. This discussion is intended for educational purposes only and is not legal, tax, insurance, or investment advice. Individual circumstances vary. Questions? Call 413-773-3333 Learn more at HugYourMoney.com Frances Rahaim Opens Financial Fitness In this episode of Financial Fitness, host Frances Rahaim, “The Money Doctor,” joins Jess Tyler for a practical conversation about aging, retirement savings, and the financial risk of long-term care. Frances explains that many people work hard to get out of debt, save money, and build a nest egg, only to discover later that long-term care costs can threaten the assets they planned to use in retirement or leave to their family. Why Long-Term Care Costs Are So Dangerous Frances explains that long-term care does not always mean a nursing home. It can involve help with activities of daily living, such as dressing, bathing, eating, continence, cognitive impairment, or basic mobility. She notes that many people prefer home health care or help from a trusted person rather than being forced into a facility, but those options can be expensive. The risk is especially difficult for people who have too much money to qualify easily for aid, but not enough money to comfortably absorb years of care costs. The Problem with Traditional Long-Term Care Insurance Frances says traditional long-term care insurance has never been her favorite solution because it can be very expensive and often works like “rent”: a person pays premiums for years, but if they never need the benefit, they do not get the money back. She acknowledges that traditional long-term care insurance can be right for some people, but says many clients resist it because of the cost, the emotional discomfort of imagining future care needs, and the possibility of paying large premiums without ever using the coverage. Trusts, Family Transfers, and Medicaid Planning Jess asks whether people should simply move assets out of their own names so they can qualify for help later. Frances explains that trusts, family transfers, and related strategies can have merit, but they also carry risks and should be handled carefully with an attorney and financial advisor. She warns that putting money in a child’s name can expose those funds to the child’s lawsuits, illness, financial problems, or other risks. She also explains that if a trust is revocable and the person still has access to the money, those assets may still be counted. Newer Hybrid Long-Term Care Options The main focus of the episode is a newer category of long-term care planning tools that are not traditional “use it or lose it” policies. Frances describes contracts that combine long-term care benefits with either life insurance or annuity-style structures. These products may allow someone to reposition conservative assets they do not expect to need for income, turning those assets into a larger pool of potential long-term care coverage while still preserving a death benefit or beneficiary value if the care benefit is not fully used. A Real-Life Example of Leveraging Assets Frances gives an example of clients who had about $400,000 in a 401(k), with enough other assets to support their retirement income. She suggested moving about $200,000 into a long-term-care-focused contract. In that example, the contract value increased for benefit purposes and created more than $500,000 in long-term care coverage from the $200,000 repositioned asset. She also explains that some contracts can include riders such as inflation protection and joint coverage for a married couple, allowing the benefit to grow and potentially cover both spouses. What Medicare and Medicaid Actually Cover Frances clarifies that many people mistakenly assume Medicare will cover long-term care. She explains that Medicare may cover only a limited early period in a facility, often around 90 days depending on the plan and circumstances. After that, Medicaid may become relevant, but Medicaid is needs-based and looks at income and assets. If someone has too much income or too many assets, they may not qualify until they spend down resources. For married couples, some assets may be protected for the spouse still at home, but the situation can become complicated and financially stressful. Key Questions Before Choosing a Policy Frances recommends asking detailed questions before choosing any long-term care solution. People should ask how they qualify, what underwriting is required, whether health conditions matter, how benefits are triggered, whether the policy reimburses receipts or pays a monthly benefit, how taxes are handled, what happens if the money is not used for care, who receives the death benefit, and how beneficiaries are set up. She especially likes policies where a person has one assigned representative and benefits can be used flexibly rather than requiring constant reimbursement paperwork. Planning Before a Crisis The episode closes with Frances emphasizing that long-term care planning is easier before a crisis occurs. She notes that some people may still qualify even at older ages, including an example of someone around 80 years old who was still eligible for one of these products. Her larger message is that people should not assume they are too old, too unhealthy, or too late to explore options. Instead, they should identify what they are trying to protect, review their assets, talk with qualified advisors, and decide whether a hybrid long-term care strategy could help preserve dignity, choice, and family assets.
