I’m 60 and want a long-term care policy before I retire. Is this a good idea, and how can I find the best option?

Long-term care planning is one of the most important tasks on your to-do list when preparing for retirement. Around 70% of adults (1) who survive until age 65 develop “severe” long-term care needs before they die, and 48% receive at least some paid care over their lifetime according to the Office of the Assistant Secretary for Planning and Evaluation.

Unfortunately, the costs of care can blow through your nest egg, with the annual median cost of an assisted living facility totaling $70,800 per year and the annual median cost of a semi-private room in a nursing home totaling $111,325, according to the Genworth Cost of Care Survey (2).

Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’

Prime US real estate was a rich person's game — then something changed. Now everyday Americans are getting a piece of the action for as little as $100

Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going

So how exactly should you prepare for long-term care? Let’s pretend that Susan is 60 years old, married, and getting ready to retire soon. She’s considering long-term care coverage but isn’t sure whether it’s a good idea or how to find the best option if it is.

Susan’s husband is older and already retired, the couple has around $600,000 in 401(k) assets, and they have enough money to live reasonably comfortably but not to cover a $111,325 annual bill. So, what should Susan do?

Susan is smart to think about how she’ll cover long-term care costs, because without a plan, she’d probably have to pay out of pocket.