What are the costs of long-term care?

There is no question that most Americans are living longer, and that means our later years can create financial concerns for our families and ourselves.  Healthcare services for seniors can be expensive.  Long-term care refers to any range of services that are meant to help another person with daily living activities because they can no longer do so on their own. The areas such persons require assistance might include (but are NOT limited to) using the bathroom, bathing, feeding, walking, getting dressed, managing pain, administering medication and a whole lot of other activities that most people simply take for granted. For example:

  • Assisted living $42,600
  • Nursing home $90,000
  • Home Health Aide $20,800

About 18% of people end up in assisted living, 51% with in-home health care, and 31% in nursing homes.

The hardship of the unpaid caregiver

For those who provide unpaid caregiver services, there is a cost as well. These costs can include lost time from work, used vacation time, early retirement, relocation, and reduced work hours.

There is a reasonable solution

Long-Term care insurance can provide your family with the resources that will allow your loved ones to obtain the best care possible, while not causing financial hardship on the family.

Home care services allow you to live in your own home, or to return to your home by helping you complete daily tasks that you cannot manage alone.

Adult day care is an option that provides a program of therapeutic and social services in a group setting.

Facility care services include assisted living facilities, which offer on-site support for carrying out the activities of daily living.

Case Study

Dan and his wife, Melissa, had watched his parents transition from living an independent and active lifestyle to needing assistance with basic daily activities (bathing, dressing, etc).  Dan’s parents had an LTC policy with a limited benefit amount.  Dan’s mother, who needed care for many years,

exhausted her benefits and was left to pay for care via her savings and income.


 Dan and Melissa’s agent designed an Essential LTC policy that included a Shared Benefit Amount

rider. This provided a third benefit pool, available to either or both of them, if they exhausted their

benefits under their respective base plans. With the knowledge that each of them could have

additional benefits, if needed, Dan and Melissa look forward to sharing a comfortable retirement!

Sources for this article

 The 2014 Sourcebook for Long term Care Information, AmericanAssociation for Long Term Care Insurance, 2013

Essential LTC