How can one cover the costs of long-term care?

Bob had a whole life insurance product with just over $125,000 of cash value. Self insuring for long term care was not an option for him.  Bob was 54 and his wife was 53 and liquid investments (excluding the home) in Bob’s name were about $289,600.  If Bob needs to go into a nursing home his investments would cover two years of nursing care, given the average cost in Connecticut, at which time he could apply for Medicaid.  At such time his wife could only have around $110,000 in assets.  Perhaps Bob’s wife could care for him as long as possible, but who will care for her after his death or if he is incapacitated?  Women live 6-8 years longer than men.  Not only is Bob at risk, but his wife is even more at risk.  If they owned a second home they would have to sell it and spend down the net proceeds in order to qualify for Medicaid.  What should they do to protect themselves?
During our younger and middle years many of us need life insurance, especially to cover debts and education expenses of our children, but as these needs dwindle, our need for life insurance also diminishes.  Yet, our need for long-term care insurance increases with age, as does the cost.  What can one do besides simply allowing the life insurance to lapse and self pay for long-term care?  First, given changes in the life insurance industry and present low interest rates, the life insurance we obtained years ago now may be replaced with the same coverage but for less cost, depending upon our health and age.  This is why we must constantly review our life insurance as we review our estate plans and even health through annual physicals.  Second, through a permissive IRS tax exchange we may convert our life insurance into long-term insurance or part life insurance and part long-term care insurance.  Some plans allow one to pay a lump sum from the value of the exchanged life insurance and not have to make periodical payments thereafter.  Or, one could convert life insurance to a hybrid long-term care and life insurance product.  For many of these products if long-term care is not used, the amount otherwise allocated to long-term care is available for life insurance upon the owner’s death.  An estate plan is not just a Will.  It involves a careful analysis of tax implications, one’s investment beneficiaries, long-term care needs, medical and financial powers.  Please do not wait until it is too late.