How to Financially Prepare for Veteran Long-Term Care

What Is Long-Term Care?

Long-term care is the assistance one needs with the “activities of daily living” –  bathing, dressing, transferring (getting in or out of a bed or chair), walking, and using the bathroom – as the result of aging, cognitive or physical impairment, or extended illness. And when it comes to financial planning, it’s among the most misunderstood and, consequently, least frequently addressed areas of need.

According to the December 2025 First Command Financial Behaviors Index survey, 40% of military members say suffering an illness or becoming debilitated is one of their top three retirement financial concerns, while 32% say not being able to afford healthcare costs is one of their top three retirement financial worries. That’s why planning ahead for the possibility of needing long-term care is essential for veterans.

Long-Term Care Considerations for Veterans

What are my options for long-term care as a veteran?

As a veteran, you may be entitled to a range of benefits that can help ease the burden of some long-term care costs. Speak to your financial advisor and find out what veteran and military spouse benefits, like VA Aid and Attendance benefits or Household benefits, you may be eligible to receive. Other long-term care options include:

1. Rely on your family.
2. Pay for it out of pocket.
3. Count on Medicaid, which requires spending down most of your accumulated assets.
4. Secure private long-term care insurance.
   

Assumptions vs. Reality in Long-Term Care

Let’s take a look at the gap between most people’s assumptions and reality:

Do I need long-term care insurance?

Assumption: I probably won’t need long-term care.

Reality: The U.S. Department of Health and Human Services reports that approximately 70% of all Americans over the age of 65 will require some form of long-term care. And yet, only 14% of service members say their most important concern is military healthcare benefits for veterans over the age of 65 according to the First Command Financial Behaviors Index survey.  

Who will be my caregiver?

Assumption: If I do need help, my family will be able to provide it.

Reality: In many cases, family members don’t live in the same location and it’s not feasible for them to relocate. But even when there is no geographic challenge, family members generally do not have the time or necessary skills to provide professional care. 

Does the VA cover long-term care?

Assumption: As a veteran, I’m eligible to be covered for all my long-term care needs.

Reality: Although the VA and other sources do provide certain coverage, you may not meet all eligibility requirements, may still be responsible for a copay, or may need to pay out of pocket for costs that exceed VA payments. It is always a good idea to speak with a financial advisor to gain a better understanding of the long-term care solutions available to you.

Will other forms of insurance cover my long-term care needs?

Assumption: Most expenses beyond VA benefits will be covered by my private health insurance or Medicare.

Reality: The ongoing costs associated with long-term care are not covered by private health insurance or Medicare. Although Medicaid covers many of the expenses associated with long-term care, it does so only when all other available assets have been exhausted.

Is long-term care expensive?

Assumption: Any expenses I have to pay for will be relatively modest.

Reality: Only a few years of paying for professional long-term care can deplete hundreds of thousands of dollars of life savings. In the  Cost of Care Summary chart below, you can review the cost of in-home care, assisted living communities, and nursing home facilities. Needless to say, costs can vary depending on the area where you live and even from one facility to another, so it’s important to do the research necessary to estimate what the actual costs might be for someone in your family.

Long-Term Care Planning: Time Is Not on Your Side

When it comes to long-term care planning for veterans, time is not on your side. The cost of long-term care insurance is based on your age at the time of application – the younger you are, the more affordable the coverage. Add the fact that approval is subject to verification that you are in good health, and it’s easy to understand why it’s generally best to determine whether long-term care insurance makes sense for your family sooner rather than later. How soon? The American Association for Long-Term Care Insurance suggests your mid-50s as an ideal age to apply.

Take the First Steps to Plan for Long-Term Care

There is no one right answer when it comes to planning for long-term care because it depends on so many personal variables: your assets; your personal health and family health history; the cost of care in the state or community where you live; and your family’s ability – or inability – to play a role. That’s why effectively tackling this challenge should begin with two important steps:

1. Have a candid conversation with your family – whether that means your children or your parents – about the roles everyone is willing and capable of playing, the cost of long-term care, and the option that is most likely to fit everyone’s needs.
2. Meet with a financial advisor with knowledge about and experience in long-term care planning. Work together to develop a long-term care solution that’s right for your family and incorporate it into your financial plan.

It’s not surprising that so few people are unprepared for the costs associated with long-term care. It’s a complicated topic that forces us to confront our future frailty. But taking the time to plan for the possibility that you, your spouse, or even your parents will need help at some point in life can protect your family’s financial security, preserve choice and control, reduce the burden on loved ones, and provide you with the peace of mind that comes from knowing you are prepared.