--- title: What Happens When Clients Run Out of LTCI Benefits? description: Discover essential strategies for financial advisors to help clients manage long-term care costs when LTCI benefits run out, including Medicaid planning and alternative care options. image: https://lhc.naifa.org/hubfs/AI-Generated%20Media/Images/The%20image%20depicts%20a%20client%20meeting%20in%20a%20modern%20conference%20room.jpeg --- [**](https://lhc.naifa.org/lecpblog/what-happens-when-clients-run-out-of-ltci-benefits#tmpmodule_1610372601348145) - [Join](https://belong.naifa.org/join) - [Renew](https://community.naifa.org/login.aspx) - [Find an Advisor Pro](https://findapro.lifehappens.org/) **** [![belong.naifa.orghs-fshubfslogo_NAIFA_white](https://lhc.naifa.org/hs-fs/hubfs/social-suggested-images/belong.naifa.orghs-fshubfslogo_NAIFA_white.png?width=140&height=109&name=belong.naifa.orghs-fshubfslogo_NAIFA_white.png) ![logo_NAIFA_NEW](https://lhc.naifa.org/hs-fs/hubfs/logo_NAIFA_NEW.png?width=100&height=73&name=logo_NAIFA_NEW.png) ](https://lhc.naifa.org/) [**](https://lhc.naifa.org/lecpblog/what-happens-when-clients-run-out-of-ltci-benefits#tmpmodule_1610372601348145) - [Centers Home](https://centers.naifa.org/centers) - [LHC Home](https://lhc.naifa.org) - LHC Collectives - [Limited and Extended Care Planning Collective](https://lhc.naifa.org/lecp) - [Medicare Collective](https://lhc.naifa.org/medicare) - Advisory Councils - [Limited and Extended Care Planning Advisory Council](https://lhc.naifa.org/advisory-council) - [Medicare Advisory Council](https://lhc.naifa.org/mc-advisory-council) - Advocacy - [Limited and Extended Care Planning Legislative Working Group](https://lhc.naifa.org/legislative-working-group) - [Medicare Legislative Working Group](https://lhc.naifa.org/medicare-legislative-working-group) - [Advocacy Action Center](https://advocacy.naifa.org/news) - Events - [Inside the New NAIFA Medicare Collective Working Group webinar recording](https://vimeo.com/1211793994/19889c51bc?share=copy&fl=sv&fe=ci) - [Medicare Collective Impact Day 2026 Recording](https://belong.naifa.org/navigating-disruption-and-market-contraction-in-medicare-business-in-2026-and-beyond) - [Peak 65 Series: Impact Day for Lifetime Healthcare Recording](https://lhc.naifa.org/peak65) - [Limited and Extended Care Planning Archives](https://lhc.naifa.org/archives) - [2025 LECP Impact Day Recording](https://vimeo.com/1138688419/b50a406b29?share=copy&fl=sv&fe=ci) - [LHC Webinars](https://lhc.naifa.org/archives) - Blogs - [Limited and Extended Care Planning Blog](https://lhc.naifa.org/lecpblog) - [Medicare Blog](https://lhc.naifa.org/mcblog) ** ![LHC-header](https://lhc.naifa.org/hs-fs/hubfs/LHC-header.png?width=1920&height=960&name=LHC-header.png) # **Limited and Extended Care Planning Collective** The LECP Collective empowers professionals to network with solution and service providers to share best practices, directly access subject matter experts, research, training and resources; and provide thought leadership so we may continue to address the changing needs of the market. ###### 3 min read # [What Happens When Clients Run Out of LTCI Benefits?](https://lhc.naifa.org/lecpblog/what-happens-when-clients-run-out-of-ltci-benefits) By [The Krause Agency](https://lhc.naifa.org/lecpblog/author/the-krause-agency) on 2/10/25 11:43 AM ###### Topics: [Long-Term Care](https://lhc.naifa.org/lecpblog/topic/long-term-care) [Medicaid](https://lhc.naifa.org/lecpblog/topic/medicaid) [Long-Term Care Insurance](https://lhc.naifa.org/lecpblog/topic/long-term-care-insurance) [Lifetime Healthcare Center](https://lhc.naifa.org/lecpblog/topic/lifetime-healthcare-center) ![](https://lhc.naifa.org/hubfs/AI-Generated%20Media/Images/The%20image%20depicts%20a%20client%20meeting%20in%20a%20modern%20conference%20room.jpeg) Long-term care insurance (LTCI) provides crucial financial protection for extended care needs, but most policies have a benefit cap, whether it’s a maximum payout amount or benefit duration. When LTCI benefits run out, clients may face a difficult financial situation. As a financial advisor, you are uniquely positioned to help them plan for the next phase of care. | ![Mary Sizemore](https://lhc.naifa.org/hs-fs/hubfs/Mary%20Sizemore.png?width=302&height=288&name=Mary%20Sizemore.png) | | --- | | *Mary Sizemore, CLTC* *The Krause Agency* *Insurance Communications and Marketing Coordinator* | #### Assess the Client’s Remaining Resources In the event they exhaust their LTCI benefits, what other financial resources are available to them? - Do they have enough **personal savings and investments** to self-fund their care? - Can their **pensions, Social Security, and retirement accounts** cover ongoing expenses? - Do they have enough **home equity** to benefit from a reverse mortgage or selling their home? - Are their **adult children or other loved ones** willing and able to help with care costs? Advisor Tip: Have this conversation well before LTCI benefits run out to avoid last-minute financial strain. #### Explore Medicaid Planning Strategies If the client’s personal funds won’t cover ongoing care, Medicaid may be the next step. However, in order to qualify, they need to meet specific income and asset requirements.  To obtain Medicaid eligibility, clients may need to spend down their excess assets to be within Medicaid’s limits. Fortunately, they can use a Medicaid Compliant Annuity to preserve what they have left by converting these assets into an income stream. For married couples, the health spouse can keep a separate portion of assets known as the Community Spouse Resource Allowance, which varies by state but is often upwards of $100,000. Clients may also want to consider state partnership protection (available in most states) as a part of their LTCI policy. In the event they exhaust all their LTCI benefits and pursue Medicaid eligibility, the amount of policy benefits paid on their behalf will be exempt from Medicaid in addition to their normal resource allowance, allowing them to preserve additional assets. Advisor Tip: Work with an elder law attorney to ensure proper Medicaid planning and to avoid violating the 5-year lookback rule for divestments. #### Consider Alternative Care Options If nursing home care is no longer financially feasible for the client, explore more affordable alternatives, such as: - **Home health care**, which can be cheaper than full-time facility care - **Adult day care programs**, which provide daytime supervision while allowing family involvement - **Medicaid waiver programs for assisted living**, available in some states #### Guide Clients on Estate and Legacy Planning As assets diminish, financial advisors should help clients: - Update estate plans to reflect their changing financial situation. - Review their financial power of attorney to ensure a trusted individual can manage their affairs. - Discuss inheritance expectations with family members. #### Planning Ahead Is Key Clients may underestimate how long they will need long-term care. As their financial advisor, you can help them: - Prepare for what happens when LTCI benefits run out. - Explore Medicaid and alternative funding sources. - Protect assets while ensuring they receive quality care. Want to help your clients plan ahead? 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