cost of long term care

Cost of Long-Term Care

Cost of Long-Term Care…You’ve worked for a long time to make sure that you and your family will be protected financially. And, you’ve done everything you can to prepare for any surprises that the future might bring you. But, even the most well-thought-out financial strategy might not be able to prepare you for the potential unexpected cost of long-term care.

Long-term care, whether provided at home or in a facility, can be very expensive. The costs vary depending on the type of care, location, and level of assistance needed. In many cases, individuals require care for an extended period, which further adds to the financial burden. Additionally, traditional health insurance plans typically do not cover long-term care expenses. While some policies may provide limited coverage for skilled nursing care or rehabilitation, they often have restrictions and may not cover the full cost.

Today, we’ll walk you through some statistics related to long-term care, and a few different ways of covering its cost. For additional information and resources to help you and your family plan for the possibility of needing long-term care, you can visit 

Long-Term Care Statistics

With Americans living longer than ever, most of us will end up needing long-term care in some form. As you age, basic, everyday tasks get more difficult. But, you can’t be certain whether or not you’ll need long-term care, how long you’ll need it for, the level of care required, et cetera. Additionally, your needs are likely to change over time.

Here are some important statistics related to long-term care.

  • Someone aged 65 right now has nearly a 70% chance of needing it in some form
  • 20% of people turning 65 right now will need it for longer than 5 years
  • Women, typically, need it for longer than men: Men on average need 2.2 years, while women on average need 3.7 years

It’s also important that you know the impact that just a few years of long-term care can have financially. Here are a few statistics related to cost:

  • The cost of one year of in-home care, 40 hours of help per week, is $50,918
  • The average cost of one year in a private, Medicare-certified long-term nursing home is around $107,000
  • The average cost for one year in an assisted living facility is around $57,000

Learn Your Options

There are several different ways out there to cover the cost of long-term care. Listen below are just a few. Before making a decision, it’s important that you understand your options fully. Additionally, make sure that you’ve talked to the people you trust about it, including your family, doctor or other health provider, and social worker. Now, some of your options include:


Medicaid may cover a number of services, including:

  • Home care (such as cooking, cleaning, and assistance with other basic daily activities)
  • Home health services like physical therapy or nursing care
  • Transportation to medical care
  • Case management
  • Respite care and hospice

It’s important to note that Medicaid programs vary from state to state. It may offer more services in your specific state. Call your Medicaid professional for more information. These services may also be available through other programs. For example, Area Agency on Aging, or Medicare. However, Medicare may cover a maximum of 100 days of services after a hospital stay. Coverage is designed to assist people during short-term recovery, and doesn’t include personal care or supervision services.

Group Living Arrangements

Residential care communities, personal care homes, and assisted living communities are all examples of group living arrangements. The benefit of group living arrangements is that they can help you with some of the activities of daily life that you might otherwise have trouble with as you age. Whether they offer using services, if they help with medications, etc., varies from state to state. In most cases, residents of these communities pay regular monthly rent and additional fees depending on the type of personal care and services they get.

Subsidized Senior Housing

There are state and federal programs to help pay for housing for some seniors with low to moderate incomes. Some of these housing programs also offer help with meals. Furthermore, they potentially offer assistance with things like housekeeping, shopping, and laundry. Residents usually live in their own apartments, and rent payments are based on a certain percentage of the person’s income.

Hospice and Respite Care

Hospice is a program of support for people with terminal illnesses. The focus is on helping terminally ill people live more comfortably. Respite care, meanwhile, is a very short inpatient stay given to a hospice patient, soo that their usual caregiver can rest.

Covering the Cost of Long-Term Care Using an IUL

Do you currently have a life insurance policy in place? You might not realize it, but some types of life insurance can actually be used to cover certain costs for you while you are still alive. For example, purchasing an IUL (indexed universal life) insurance policy is one way to save up money to cover unexpected costs. This includes the cost of long-term care. There are a number of benefits to this method. An IUL:

  • Offers potentially tax-free income
  • Access the money at any time
  • No penalty for accessing it
  • No contribution limit
  • Your cash value is unaffected in the vent of a stock market decline

Purchasing an IUL is a great way to prepare for the possibility of needing long-term care. Even if you don’t end up needing it, the money in the IUL can be used to cover other unexpected costs in the future instead. Purchasing an IUL and selecting a long-term care rider is one of several ways to pay for the cost of long-term care. Contact us to learn more about this potential strategy. We’re here to help you stay protected.

Sources:,, AARP. 

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top