Long-Term Care Planning in Arizona
Plan for care with your savings in mind.
Compare traditional, hybrid and annuity-based long-term care coverage with a licensed Arizona agent. Review eligibility, costs and benefit limits before deciding whether coverage fits.
- Serving Arizona since 1995
- 45,000+ families
- Licensed insurance agents
- Scottsdale and Tucson
In-home aide: non-medical caregiver, 44 hours a week
Arizona monthly median, 2025
Assisted living: private one-bedroom
Arizona monthly median, 2025
Nursing home: semi-private room
Arizona monthly median, 2025
CareScout 2025 Cost of Care Survey. Surveyed July-November 2025. Costs vary by provider, location and care needs; these are not quotes or forecasts.
Medicare does not cover ongoing custodial care. Eligible skilled care may be covered for a limited time under Medicare rules.
A thirty-second gut check
How long would your savings last?
Pick the savings and care setting to estimate months at a constant monthly cost. This is a budgeting example, not a care forecast.
Arizona monthly medians from the CareScout 2025 Cost of Care Survey, surveyed July-November 2025. Excludes inflation, investment returns, taxes, other income and other living expenses. Ask local providers for current quotes.
Kind of care
Estimated months at this cost
35 months2.9 years
About 1 months short of this three-year example. Actual care may last longer or shorter. Insurance, if suitable, has its own limits and costs.
One minute. No contact details until you ask.
Three questions, one minute · Question 1 of 3
How old are you?
Issue ages vary by product. Your answer helps focus the review, not determine eligibility.
Four ways families pay for care
Compare the benefits. Understand the limits.
Families may combine approaches. Here, asset-based LTC means an annuity with a care rider; hybrid life coverage also uses assets. No column is automatically best.
| What matters | Traditional LTC insurance | Hybrid life and LTC | Asset-based LTCAnnuity with care rider | Self-funding |
|---|---|---|---|---|
| Medical underwriting | Health review; exams and records vary | Health review varies by policy | Issue ages, health assessment and suitability vary | No insurer approval |
| If you never need care | Usually no payout; optional benefits vary | Remaining death benefit under policy terms | Remaining account or death benefit, after deductions | Unused funds remain; other expenses still apply |
| Can the cost rise later? | Class-wide premium increases may apply | Premium guarantees depend on policy | Single-premium designs can still have ongoing fees | Future care costs are uncertain |
| Funded with | Premium schedule varies | Single premium or installments, by policy | Eligible assets; check taxes and replacement costs | Income and assets you choose to budget |
| How benefits pay | Reimbursement or cash, subject to policy | Payment method and claim rules vary | Cash or reimbursement; family-care rules vary | You pay care providers directly |
| Care benefit limits | Selected benefit amount and duration | Care payments may reduce death benefit | Benefit base is not withdrawable account value | No insurance benefit pool |
| Tax treatment of benefits | Qualified benefits may be excluded; limits apply | Depends on rider and federal tax rules | Qualified benefits may be excluded; limits apply | Taxes depend on funding source and expenses |
Traditional LTC insurance
- Medical underwriting: Health review; exams and records vary
- If you never need care: Usually no payout; optional benefits vary
- Can the cost rise later?: Class-wide premium increases may apply
- Funded with: Premium schedule varies
- How benefits pay: Reimbursement or cash, subject to policy
- Care benefit limits: Selected benefit amount and duration
- Tax treatment of benefits: Qualified benefits may be excluded; limits apply
Hybrid life and LTC
- Medical underwriting: Health review varies by policy
- If you never need care: Remaining death benefit under policy terms
- Can the cost rise later?: Premium guarantees depend on policy
- Funded with: Single premium or installments, by policy
- How benefits pay: Payment method and claim rules vary
- Care benefit limits: Care payments may reduce death benefit
- Tax treatment of benefits: Depends on rider and federal tax rules
Asset-based LTC
Annuity with care rider
- Medical underwriting: Issue ages, health assessment and suitability vary
- If you never need care: Remaining account or death benefit, after deductions
- Can the cost rise later?: Single-premium designs can still have ongoing fees
- Funded with: Eligible assets; check taxes and replacement costs
- How benefits pay: Cash or reimbursement; family-care rules vary
- Care benefit limits: Benefit base is not withdrawable account value
- Tax treatment of benefits: Qualified benefits may be excluded; limits apply
Self-funding
- Medical underwriting: No insurer approval
- If you never need care: Unused funds remain; other expenses still apply
- Can the cost rise later?: Future care costs are uncertain
- Funded with: Income and assets you choose to budget
- How benefits pay: You pay care providers directly
- Care benefit limits: No insurance benefit pool
- Tax treatment of benefits: Taxes depend on funding source and expenses
General comparison, not an offer or eligibility decision. Check current Arizona contract terms, benefit triggers, waiting periods, exclusions and fees. Fixed-period cash benefits can have tax-exclusion limits; ask a tax professional about all coverage on the same insured.
The asset-based option, explained
Two parts to understand: the account and the care benefit.
An annuity with a long-term care rider is one asset-based design. These are questions to compare, not terms of a specific offer. A licensed agent must confirm current Arizona availability, issue ages, underwriting and suitability.
- Step 1
Start with money you can set aside
Review savings and any existing policy before moving money. Minimum premiums, eligible funding sources and ownership rules vary. Replacing a contract can mean taxes, surrender charges or lost benefits.
- Step 2
Separate care benefits from account value
The benefit base calculates care payments; it is not cash you can withdraw or leave to beneficiaries. Any multiplier or growth formula depends on the contract, age and underwriting class. Fees can reduce account value.
- Step 3
Check what starts and continues payments
A diagnosis alone does not guarantee payment. The insurer must approve the claim under the contract, including required certification, a care plan and any waiting period. Reimbursement, cash payments and family-care rules vary. Tax exclusions have conditions and limits.
- Step 4
Check what remains for you and your family
Index credits are not assured annual growth. Fees, withdrawals and care payments can reduce account value and what beneficiaries receive. Early access may carry surrender charges, adjustments and taxes. Ask for guaranteed and nonguaranteed values.
A hypothetical example
Meet Linda, 62, Mesa.
Widowed, two grown kids, a paid-off house, and about $400,000 across a CD, a money market and an old annuity she bought in 2011. Her mother spent six years in a care home. She does not want that bill landing on her kids.
- 1
She checks the existing annuity
Linda asks about surrender charges, benefits she would give up and the tax consequences before considering a replacement. No exchange is assumed to be tax free.
- 2
She compares written terms
An agent checks eligibility and shows care benefits, account values, fees and access limits in a current product-specific illustration. Linda keeps emergency savings separate.
- 3
She considers both outcomes
She asks how approved care payments would affect her account, and what could remain for her children if she never uses care benefits. She may decide not to replace her annuity.
Hypothetical, for illustration only. Not an actual client, product or illustration. Benefit bases, growth rates, vesting, fees and surrender charges depend on the product, your age, your underwriting class and your state. A licensed agent provides a product-specific illustration in the review.
Straight talk
It is not for everyone. Here is what to consider.
Reasons to compare
People with funds beyond immediate needs who want to compare care coverage with keeping those funds available. Minimum premiums and issue ages vary.
People who were told no before who want an agent to check other policies. A prior decline does not establish eligibility for another contract.
Anyone holding an old annuity or life policy who wants to compare existing benefits with replacement costs, access limits and tax consequences.
Families with caregiving experience who want a written plan for possible care costs, without assuming insurance covers every expense.
Probably not the move
Money you will need within a few years. These contracts carry surrender charges early on and are built to be left alone.
Age or health outside a policy’s rules. An agent must check current issue limits and underwriting. There is no universal age window or approval rule.
Retirement-account money as the only source. Funding eligibility and distribution taxes need review before considering a purchase. Do not assume a tax-free transfer.
A very large estate that can self-insure comfortably. Some families are better off keeping the money liquid. The review will tell you if you are one of them.
If the honest answer is that something else fits you better, that is what you will hear. That is the whole point of a review.
Who you will talk to
Licensed agents who do this every week
The review happens with the people below. Each one holds the Arizona insurance license behind every option they show you, and several carry the securities registrations to look at the whole picture.
Chris Cohan
CEO | ChFC®, RMA®
ChFC® · RMA® · Series 6, 63, 65 · AZ Life & Health
With over 25 years in financial services and deep Arizona roots, Chris takes a steady, thoughtful approach to wealth and estate planning. As a Chartered Financial Consultant® (ChFC®) and Retirement Management Advisor® (RMA®), he helps individuals and families build, protect, and transfer wealth through personalized strategies.
View ProfileStephen Levin
Tucson Director of Risk Management | Senior Planning Consultant | Licensed Insurance Agent
Series 65 · Licensed Insurance Agent
Stephen brings a background in risk management to his role at RJP, where he helps Tucson-area families protect what they've worked so hard to build. Before transitioning into estate and insurance planning, he spent years in risk-management leadership, learning how to spot vulnerabilities and build strategies that hold up when it matters most.
View ProfileChris Zajdzinski
Wealth Management Advisor, Fiduciary | Licensed Insurance Agent
CLU · Series 6, 63, 65 · Fiduciary · AZ Life & Health
With more than 30 years of experience in financial services, Chris is dedicated to helping individuals and families make informed, confident decisions about their financial future. As a Wealth Management Advisor and Fiduciary, he works closely with clients to understand their concerns and offers guidance tailored to their unique needs and priorities. His experience includes retirement income planning, risk management, and estate and legacy planning.
View ProfileRon Tallou
Wealth Management Advisor, Fiduciary
Series 6, 63, 65 · Licensed Insurance Agent
Born and raised in Michigan, Ron developed a strong work ethic and deep appreciation for community values early in life. These formative experiences ignited a lifelong passion for wealth management, ultimately shaping his career in finance.
View ProfileThomas Fryar
Senior Planning Consultant | Licensed Insurance Agent
Licensed Insurance Agent
As a financial services professional since 1978, Thomas has developed risk-managed retirement income and estate-transfer strategies that help clients protect lifetime cash flow, provide for surviving spouses or special-needs family members, and pass wealth efficiently across generations. His four decades in life insurance and planning inform a disciplined, education-driven approach to protecting family assets.
View ProfileDimitri Redwood
Wealth Management Advisor, Fiduciary | Licensed Insurance Agent
Series 7 · Series 6 · Series 63 · Series 65 · Fiduciary · Licensed Insurance Agent
Dimitri works with Tucson-area families on the financial side of estate planning, helping clients think through how to protect what they've built and pass it on the way they want. With six years of experience as an advisor, including time at an investment firm, he brings a practical perspective to every conversation. He takes time to listen first, then walks each family through their options in plain language so they can make decisions with confidence.
View Profile