Long-Term Care Planning for Couples: How to Protect Both Spouses

As couples grow older, the topic of long-term care planning becomes increasingly important. Many partners assume they’ll be able to care for each other when the time comes. While this is a loving and hopeful mindset, the reality is often much more complex. One spouse may eventually need professional, around-the-clock care while the other spouse is also experiencing health issues or may otherwise be physically unable to lift, carry, or otherwise provide essential care.

Planning for these possibilities is not just wise, it’s necessary. Without the proper financial safeguards, the cost of care could quickly consume savings, force the sale of assets, or leave a healthier spouse financially insecure. That’s why every couple needs a plan in place that ensures both partners are protected now and in the future.

What Is Long-Term Care and Why It Matters

Long-term care refers to a range of services designed to meet an individual’s health or personal care needs over an extended period. This care may include help with daily activities such as bathing, dressing, eating, or moving around the house.

As we age, the probability of needing long-term care increases significantly. According to the U.S. Department of Health and Human Services, nearly 70% of people turning 65 will need some form of long-term care. For couples, this means preparing for the possibility that one or both spouses will require such services.

The cost of care is not insignificant. A private room in a nursing home can exceed $100,000 per year. Even in-home care can be expensive when extended over months or years. These costs can quickly erode retirement savings if not properly managed.

Why Traditional Annuities May Not Be the Best Option

Many couples invest in annuities as part of their retirement strategy. While traditional annuities offer guaranteed income, they fall short when it comes to covering long-term care expenses. That’s because withdrawing additional funds from a standard annuity for health-related care may result in taxable distributions.

When you tap into your annuity to pay for a nursing facility or an in-home caregiver, the IRS treats those withdrawals as income. This means you’ll not only reduce your annuity value but also owe taxes on the distributions. This added expense can be a real setback during an already stressful time.

This is where a different kind of solution, like OneAmerica’s Annuity Care, can make all the difference.

One America’s Annuity Care: A Tax-Advantaged Alternative

OneAmerica’s Annuity Care products are designed specifically to avoid the taxable pitfalls of traditional annuities. These specialized plans allow couples to access funds tax-free when the money is used for qualified long-term care expenses.

Unlike regular annuities, these plans are structured under IRS guidelines that treat long-term care disbursements as tax-exempt. This gives couples the freedom to use their policy benefits without worrying about tax consequences. This strategy’s financial efficiency can significantly extend your retirement portfolio’s life.

Joint Coverage: Protecting Both Spouses with One Policy

One of the most appealing aspects of OneAmerica’s Annuity Care plans is the option for joint coverage. Many long-term care insurance plans only cover one individual, requiring the couple to purchase two separate policies. This doubles the cost and complexity.

With joint coverage, both spouses are protected under one umbrella. If one spouse requires care, the other’s financial well-being remains secure. And the best part? The plan doesn’t end after one claim. The unused balance is still available if the second partner ever needs care.

This model of shared protection offers emotional and financial peace of mind—something no couple should overlook.

Flexibility That Matches Your Lifestyle

Long-term care doesn’t always mean moving into a facility. It could involve hiring a home health aide, purchasing medical equipment, or even modifying your home to accommodate mobility issues. OneAmerica’s Annuity Care products recognize this need for flexibility.

Their plans can offer cash indemnity benefits, allowing policyholders to receive a regular cash payment without the burden of submitting receipts. That means more control over how and where you spend your benefit dollars. Whether you choose in-home care, adult daycare, or assisted living, the choice is yours.

This level of flexibility empowers couples to make care decisions that align with their preferences, without being limited by traditional reimbursement rules.

Benefits That Go Beyond Long-Term Care

Another significant advantage of Annuity Care is that your money isn’t wasted if you don’t end up needing care. With traditional long-term care insurance, you risk losing the premiums if the benefits are never used. That’s not the case here.

If long-term care is never needed, the annuity continues to grow, often with a guaranteed minimum interest rate. In the event of the policyholder’s passing, unused funds may go to beneficiaries. This feature transforms Annuity Care into a multi-purpose financial tool—serving as insurance, investment, and legacy planning all in one.

Integrating Long-Term Care Planning into Your Retirement Strategy

Long-term care planning shouldn’t be an afterthought. It should be an integral part of your retirement plan. Couples must sit down and evaluate their current financial position, health risks, and long-term goals.

Ask yourself:

• What is our current savings level?
  
• How much could long-term care realistically cost us?
  
• What are our options if one of us becomes ill?
  
• Do we have a backup plan for preserving assets and income?
  

Working with a licensed financial advisor who understands long-term care products is essential. They can tailor your coverage to meet your unique needs and budget. The earlier you start, the more options you’ll have—and the more you’ll save.

Planning Today Secures Peace of Mind Tomorrow

Many couples make the mistake of waiting too long to consider long-term care insurance plans. But the best time to buy coverage is when you’re healthy. Waiting until you’re in your 60s or 70s can lead to higher premiums or even disqualification.

Planning early not only locks in lower rates but also ensures that your health won’t stand in the way of getting the protection you need. It also relieves the burden from adult children who might otherwise be responsible for arranging and financing care.

Real-Life Example: How One Couple Protected Their Future

Consider Mark and Lisa, a retired couple in their early 60s. Concerned about potential care needs, they met with a financial advisor who recommended OneAmerica’s Annuity Care. They funded a joint policy using a portion of their IRA through a tax-free transfer strategy.

Five years later, Lisa was diagnosed with early-stage dementia. Their policy immediately kicked in, covering in-home care without triggering taxable income. Meanwhile, Mark continued to live comfortably without worrying about finances. Their remaining benefits remain available for Mark if he ever needs care himself.

This outcome would have been very different if they’d relied solely on savings or traditional annuities.

Key Takeaways for Couples Planning Long-Term Care

• Start early: The younger and healthier you are, the more affordable your plan.
  
• Choose joint coverage: Protect both partners under one policy.
  
• Think tax-smart: Avoid taxable distributions by using products like Annuity Care.
  
• Stay flexible: Pick plans that allow cash indemnity and self-directed care.
  
• Work with professionals: An advisor can help align your policy with your long-term goals.
  

Love Means Planning Ahead

True love isn’t just about spending your golden years together it’s also about protecting each other when times get tough. Long-term care planning is an act of love, security, and foresight.

With OneAmerica’s Annuity Care products, you can build a tax-efficient, flexible, and comprehensive strategy that ensures both partners are cared for. Don’t leave your future to chance. Prepare now and rest easy knowing you’ve taken steps to protect your health, finances, and relationship.