08/23/2026
Long Term Care is an integral part of financial planning. This article talks about the need to make sure you don't miss this part of the puzzle.
In this edition of Anchored Advice, Financial Services Senior Risk Advisor of Southern Harbor Insurance Group, Shepherd Anders discusses the need for adding Long Term Care in your financial planning.
Long Term Care Insurance: Why It Belongs in Your Financial Plan
An interview with Shepherd Anders, Financial Services Senior Risk Advisor
Even a well-built retirement plan can face pressure from one major, overlooked expense: long-term care.
To help make the topic more practical, we spoke with Shepherd Anders, Financial Services Senior Risk Advisor at Southern Harbor Insurance Group, about what Long Term Care Insurance is, why it matters, and why it’s worth reviewing before care becomes urgent.
Quick note: This article is for general educational purposes only and is not personal financial or insurance advice. Coverage options, underwriting, and availability vary by state and insurer.
What is Long Term Care Insurance?
Interviewer: Shepherd, what does Long Term Care Insurance actually cover?
Shepherd Anders: It helps pay for assistance when someone can’t fully manage everyday activities on their own because of aging, illness, cognitive impairment, or injury. That care may happen at home, in assisted living, or in a facility.
Interviewer: So it’s not just about nursing homes?
Shepherd Anders: Exactly. A lot of people think that, but long-term care is broader than that. It’s really about ongoing help with daily living — things like bathing, dressing, eating, transferring, toileting, or supervision due to cognitive decline.
Why does it matter in financial planning?
Interviewer: Why should people include long-term care in a financial plan?
Shepherd Anders: Because it can change the direction of retirement. People usually plan for predictable expenses like housing, travel, and healthcare premiums. Long-term care is different — it can happen unexpectedly, last for years, and create costs that are hard to absorb without drawing down savings faster than planned.
Interviewer: What does that look like in real life?
Shepherd Anders: It often starts small and grows. A family may begin paying for a few hours of home care, then increase support as needs change. That can turn into a second budget no one planned for — leading to bigger withdrawals, more taxes, less growth, and less flexibility overall.
Why is early planning so important?
Interviewer: A lot of people put this off. Why plan early?
Shepherd Anders: Two reasons: options and affordability. If you review coverage before there’s a health issue, you usually have more choices. Waiting until you need care is often too late, because insurance is generally something you buy while you’re still insurable.
Interviewer: What do people often overlook?
Shepherd Anders: First, many assume Medicare will cover extended long-term care — and usually, it doesn’t in the way they expect. Second, people underestimate how common it is to need some level of support. Third, they focus only on facility care and miss the cost of care at home, which many people prefer.
What’s the simplest way to think about it?
Interviewer: How should someone decide whether this belongs in their plan?
Shepherd Anders: Ask one simple question: If care is needed, where does the money come from — and what does that do to the retirement plan? For some people, the answer is setting aside assets. For others, it’s transferring part of the risk to insurance. The right answer is personal, but it should be intentional.
Final takeaway
Interviewer: What’s the one thing people should remember?
Shepherd Anders: Don’t wait until long-term care becomes urgent. Review your options while you still have them — while you’re healthy, organized, and able to make proactive decisions. Long Term Care Insurance can help protect not just your money, but your choices.
Bottom line: Long-term care planning isn’t only about protecting assets — it’s about protecting flexibility, independence, and peace of mind.
To learn more about this topic or other subjects covered in Anchored Advice, reach out to Southern Harbor Insurance Group
