You’ve probably covered the basics, such as housing, food, taxes, emergencies, and entertainment in your financial and retirement plan. What about long-term care costs?
Long-term care is an umbrella term referring to a range of personal or health-related services that you might need for an extended period of time. According to the U.S. Administration for Community Living, nearly 70% of people turning age 65 today will need some form of long-term services and supports, and about 20% will need care for more than five years.
While many military members assume their VA benefits or Medicaid will cover long-term care costs, most will need to rely on a combination of personal savings, insurance, or other resources to cover the expense.
Does Everyone Need a Long-Term Care Plan?
Although long-term care is often associated with retirement age, anyone experiencing a serious illness or injury may need it. If you’re married, your financial plan should include long-term care considerations for both you and your spouse.
The most commonly used form of long-term care in the U.S. is personal care, which helps individuals who need assistance with activities of daily living (ADLs)—such as bathing, dressing, eating, toileting, and transferring. While many receive care at home, more advanced needs may require nursing home support.
That care can be costly. According to the 2025 Cost of Care Survey, the national median cost for a semi-private nursing home room is $315 per day, or $114,975 per year (about $9,581 per month).
Funding Sources for Long-Term Care
For military-affiliated individuals, there are four primary ways long-term care may be funded: VA benefits, long-term care insurance, Medicaid, and personal savings (self-pay). Depending on your situation, one or more of these options may apply.
It’s important to note that Medicare generally does not cover long-term custodial care, and TRICARE coverage for long-term care is limited, particularly for assistance with activities of daily living.
Learn more: https://www.medicare.gov/coverage/long-term-care
TRICARE details: https://tricare.mil/CoveredServices/SpecialNeeds
VA Benefits for Long-Term Care
Navigating long-term care through the VA can be complex. Available services may include skilled nursing care, physical therapy, assistance with daily activities, caregiver support, and hospice care. Eligibility depends on clinical need, availability of services, and other factors such as service-connected disability status.
Access to care may also depend on capacity at VA facilities or availability within community providers, such as VA Community Living Centers, contracted nursing homes, or state Veterans homes.
Importantly, Veterans may use VA benefits alongside other coverage, including Medicare, Medicaid, TRICARE, or private insurance, depending on eligibility and circumstances.
Long-Term Care Insurance
Private or employer-sponsored long-term care insurance can help offset future costs, but premiums can be significant and have increased over time.
According to the American Association for Long-Term Care Insurance, in 2025 a 60-year-old couple may pay approximately $2,600 to $5,800 per year combined (about $217 to $483 per month), depending on coverage details and inflation protection.
Military members, federal employees, and their families may be familiar with the Federal Long-Term Care Insurance Program (FLTCIP). However, it’s important to note that new applications are currently suspended. The U.S. Office of Personnel Management extended this suspension for 24 months beginning December 19, 2024, meaning individuals not already enrolled cannot apply at this time.
Self-Pay
Individuals who do not qualify for public programs or lack insurance coverage often rely on personal savings to fund long-term care. This can significantly impact retirement plans, particularly if care is needed for an extended period.
Medicaid
Medicaid may cover long-term care for those who meet strict financial and medical eligibility requirements, but qualification rules vary by state.
In many cases, individuals may need to spend down excess income or assets to qualify, particularly in states offering medically needy pathways. Federal guidance from the Centers for Medicare & Medicaid Services (CMS) also includes a 60-month look-back period for certain asset transfers made for less than fair market value, which can affect eligibility and timing of benefits.
The Bottom Line
There are many factors to consider, but one reality remains: there’s a strong likelihood that you or your spouse will need long-term care at some point.
Planning ahead can help protect your financial future and provide peace of mind. Connecting with your AAFMAA Wealth Management & Trust Relationship Manager can help you incorporate long-term care into your financial plan and align your strategy with your long-term goals. If you're new to us, you can call 910-307-3500 or speak with a professional.
About Us
Founded in 2012, AAFMAA Wealth Management & Trust LLC (AWM&T) was created to meet the distinct financial needs of military families. We proudly deliver experienced, trustworthy financial planning, investment management, and trust administration services – all designed to promote lasting security and independence.
We are proud to share the mission, vision, and values of Armed Forces Mutual, our parent company. We consistently build on the Association’s rich history and tradition to provide our Members with a source of compassion, trust, and protection. At AWM&T, we are committed to serving as your trusted fiduciary, always putting your best interests first. Through Armed Forces Mutual's legacy and our financial guidance, we provide personalized wealth management solutions to military families across generations.
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