What Is Your Long-Term Outlook?

According to a recent study, 69 percent of today's 65-year-olds will eventually need some type of long-term care.¹

For many people, this might include only limited help with daily living activities, which could be provided by family or an aide. But an alarming 37 percent of today's 65-year-olds will need the type of long-term care that is provided in a nursing home or an assisted-living facility.²

Compare future costs. The current national average cost for nursing-home care is $64,200 a year; assisted-living care averages $35,000 a year.³ If you think costs are high now, consider what they might be 24 years from now when many seniors will need help with long-term care. Assuming 5 percent annual inflation, the annual cost for nursing-home care could reach $207,000 by 2030, and assisted-living care could reach $112,900.

Consider insurance protection. A long-term-care insurance policy can provide some financial protection from the high costs of long-term care. The range of coverage will differ by policy. Comprehensive policies typically cover care in three settings: a nursing home, an assisted-living facility, and at home. However, some policies may offer benefits for care in institutional settings only, whereas other plans might provide only home-care benefits.

Before purchasing a long-term-care policy, you should understand which types of facilities are covered, as well as what the policy pays per day (or month) for eligible care, how long the benefits will last, the maximum lifetime benefit, whether inflation protection is offered, and the waiting period before benefits begin.

Long-term-care insurance can provide some financial protection, as well as help shield a family's financial assets in the event that long-term care is needed. Please call for information about this important topic.

1–2) The Wall Street Journal, February 22, 2006
3) The Federal Long Term Care Insurance Program, 2005