#1. What is long-term care?
Long-term care refers to the ongoing services and support needed by people who have chronic health conditions. Long-term care is not just provided in nursing homes--in fact, the most common type of long-term care is home-based care. Long-term care services may also be provided in a variety of other settings, such as assisted living facilities and adult day care centers.
#2. Why is it important to plan for long-term care?
No one expects to need long-term care, but it's important to plan for it, nonetheless. Here are two important reasons why:
- The odds of needing long-term care are high:
According to statistics from U.S. Department of Health and Human Services from May of 2022, approximately 52% of people will need long-term care at some point during their lifetimes after reaching age 65*.
- For many, the cost of long-term care can be expensive
According to a Genworth Financial Survey done in June of 2022, some of the average costs in the United States for long-term care* include:
- $7,809 per month for a semi-private room in a nursing home
- $4,500 per month for an assisted living facility
- $1,690 per month for services in an adult day health-care center
#3. Doesn't Medicare pay for long-term care?
Many people mistakenly believe that Medicare will pay for long-term care. But Medicare provides only limited coverage for long-term care services such as skilled nursing care or physical therapy. And although Medicare provides some home health care benefits, it doesn't cover custodial care, the type of extended care older individuals most often need.
#4. Can't I pay for care out of pocket?
The major advantage to using income, savings, investments, and assets (such as your home) to pay for long-term care is that you have the most control over where and how you receive care. But because the cost of long-term care is high, you may have trouble affording extended care if you need it.
#5. Should I buy long-term care insurance?
Like other types of insurance, long-term care insurance protects you against a specific financial risk--in this case, the chance that long-term care will cost more than you can afford. In exchange for your premium payments, the insurance company promises to cover part of your future long-term care costs. Long-term care insurance can help you preserve your assets and guarantee that you'll have access to a range of care options. However, it can be expensive, so before you purchase a policy, make sure you can afford the premiums both now and in the future.
