Newsletter

NOVEMBER IS LONG-TERM CARE AWARENESS MONTH: IS YOUR PLAN IN PLACE?

November is Long-Term Care Awareness Month, and it's also National Family Caregivers Month. It's a good time to ask a hard question: if you needed help with daily activities like bathing, dressing, or moving around, who would provide that care, and how would you pay for it?

About 70% of people turning 65 will need some type of long-term care during their lives. Many assume Medicare will cover it, but it won't. Medicare pays only for short-term skilled care after a hospital stay, not the ongoing custodial care most people need. Medicaid does pay for long-term care, but only after you've spent down most of your savings.

What care costs today. According to the latest national Cost of Care Survey from CareScout (formerly Genworth), median costs are:

• Nursing home, private room: about $129,600 a year

• Nursing home, semi-private room: about $115,000 a year



• Assisted living: about $74,400 a year

Full-time care at home can cost as much or more, depending on how many hours of help are needed. And costs vary widely by state.

Ways to plan:

• Traditional long-term care insurance pays a daily or monthly benefit for care at home, in assisted living or in a nursing home. Premiums are lowest when you buy in your 50s, while you're still healthy.

• Hybrid life and long-term care policies combine life insurance with long-term care benefits. If you need care, the policy pays for it; if you don't, your beneficiaries receive a death benefit.

• Life insurance riders can let you access part of your death benefit early if you develop a chronic or terminal illness.

• Annuities with long-term care features can increase your income or provide a pool of money for care.

The best time to plan is before you need it. Health changes can make coverage harder to get or more expensive. Use this month to talk with your family about your wishes and call me to review which long-term care options fit your budget and goals.

YOUR PAYCHECK IS YOUR BIGGEST ASSET. IS IT PROTECTED?

Most people insure their home and car, but many overlook the asset that pays for everything else: their ability to earn an income. According to the Social Security Administration, about one in four of today's 20-year-olds will become disabled before reaching retirement age. And most disabilities aren't caused by accidents. The vast majority come from illnesses like cancer, heart disease, back problems, and mental health conditions.

Short-term vs. long-term disability:

• Short-term disability typically replaces part of your income for a few weeks up to about six months, after a short waiting period. It's often used for surgery recovery, pregnancy and childbirth, or a serious injury.

• Long-term disability begins after short-term benefits end, often after 90 to 180 days, and can pay for years or even until retirement age. Most policies replace about 50% to 70% of your income.

Don't count on your employer or Social Security alone. Only about 35% of private-sector workers have access to long-term disability coverage through work, and about 43% have access to short-term coverage. Employer coverage usually ends if you leave your job, and if your employer pays the premium, the benefits are taxable. Social Security disability is hard to qualify for, has a five-month waiting period, and pays an average of only about $1,600 a month. That's why individual disability insurance matters, especially for the self-employed.

What to look for in a policy:

• Definition of disability. “Own-occupation” coverage pays if you can't do your own job; “any-occupation” pays only if you can't do any job.

• Waiting period. A longer waiting period lowers your premium, but you'll need savings to cover the gap.

• Benefit period. Choose how long benefits last, from a few years to age 65 or beyond.

• Riders. Options like cost-of-living increases and partial disability benefits can add valuable protection.

If you're self-employed, a small business owner, or relying solely on group coverage, call me to review whether your income is fully protected.

YEAR-END CHECK-UP: YOUR LIFE INSURANCE AND ANNUITIES

As the year winds down, it's a smart time to make sure your life insurance and annuities still match your goals.

Life insurance: do you have enough? Only about half of U.S. adults own life insurance, and more than 100 million Americans admit they don't have enough coverage, according to industry research group LIMRA. Many people rely only on coverage through work, which is often just one or two times salary and usually ends when you leave your job.

Before December 31, review these items:

• Beneficiaries. Make sure they're current, especially after a marriage, divorce, birth, or death in the family.

• Coverage amount. Does it still cover your mortgage, debts, income replacement, and your children's education?

• Term policies. If your term is ending soon, check your conversion deadline. Converting to permanent coverage may not require new health questions.

• Permanent policies. Review how your universal or indexed universal life policy is performing to make sure it stays on track.

• Living benefits. Ask whether your policy offers riders that let you use part of the death benefit if you develop a chronic or terminal illness.

Annuities: record demand for guaranteed income. Americans bought a record $464 billion in annuities in 2025, the fourth straight record year, and 2026 sales are on pace for another strong year. With record numbers of people reaching retirement age, many want income they can't outlive and protection from market downturns.

If you own an annuity or are considering one:

• Check your guarantee period. If your fixed annuity's rate guarantee is ending, compare current rates before it renews automatically at a lower rate.

• Know your surrender schedule. Understand when you can withdraw or move money without penalties.

• Take required distributions. If your annuity is in a traditional IRA and you're 73 or older, your required minimum distribution is generally due by December 31. If you turned 73 this year, you can delay your first one until April 1, 2027, but you'll then have to take two distributions in 2027.

• Consider income options. Fixed indexed and income annuities can turn part of your savings into a guaranteed paycheck for life.

About Paul Cholak

Paul has over forty years of benefits experience and has been Director of Employee Benefits for large companies, as well as a benefits consultant with major consulting firms. He understands the life and health insurance needs of individuals and families of all ages. He also has considerable experience in selling life and health insurance to employer groups.

He guides you through the steps of getting insurance and is available to help you both BEFORE and AFTER you've made your purchase decision.