Four Ways to Fund Your Extended Care Strategy

Have you been thinking about your extended care strategy?

Someone turning 65 today has nearly a 70 percent chance of needing some type of extended care. One in three will never need it, but 20 percent will need it for longer than five years. Most people think of it as an insurance question. It's actually a funding question, and there are four ways to approach it.¹

• Traditional extended care insurance. Transfer the risk. Premiums now, coverage later.

• Hybrid life and extended care policies. Death benefit or extended care coverage, depending on what you need.

• Medicaid. Government covers costs after assets are exhausted. Eligibility rules apply.

• Self-funded. If you choose not to have any type of insurance, you have decided to self-fund.

Each has different tradeoffs, and each fits a certain type of life. If it’s been on your mind, consider the pros and cons of your options.

^{1. ACL.gov, August 3, 2026}