The True Cost of Long-Term Care

Understanding the cost of long-term care is an important part of retirement planning, but it often gets overlooked. Many people assume Medicare will cover it, or that it’s something to figure out later. 

In reality, long-term care includes a wide range of services, and it’s not just about nursing homes. It could mean getting help at home, moving into an assisted living community, or needing daily support due to a chronic condition. Planning ahead can help protect your savings, reduce stress on loved ones, and give you more say in how and where you receive care. 

How Much Does Long-Term Care Cost?

Long-term care costs continue to rise, and many families are surprised by how quickly these expenses can add up. According to the 2024 Genworth Cost of Care Survey, here are the national median annual costs for some of the most common types of care:

These are average, but actual costs can vary significantly based on where you live, the availability of care providers, and the level of support needed. In many metro areas, nursing home care may far exceed the national benchmark. 

Hidden Long-Term Care Expenses to Consider

In addition to the more visible costs, there are often unexpected or overlooked expenses that can create added financail pressure: 

• Home modifications like stair lifts or bathroom upgrades 
• Transportation to and from appointments 
• Respite care for family members who provide support
• Lost income if a partner or child steps in as a caregiver 
• Emotional strain that may affect family relationships 

These types of costs can slowly chip away at your retirement savings and add complexity to your long-term plan. 

Medical vs Long-Term Care Insurance: What’s the Difference?

It’s important to understand how medical insurance and long-term care insurance differ: 

• Medical insurance covers things like doctor visits, surgeries, and short-term rehab 
• Medicare may help with limited skilled nursing care, but it doesn’t cover long-term custodial care
• Long-term care insurance helps cover support with daily activities like dressing, bathing, or eating 

Long-term care insurance is designed to fill the gap that traditional health insurance doesn’t address. 

How Long-Term Care Insurance Can Help

The right policy can provide flexible coverage across a variety of care settings, including:

• In-home care and home health aides
• Assisted living and memory care
• Nursing home stays
• Adult day programs and caregiver respite services

Many policies are customizable, letting you choose your daily benefit amount, the length of coverage, and options like inflation protection. Some individuals also explore hybrid policies that combine life insurance with long-term care benefits for added flexibility. To help dispel common misconceptions, check out our 5 Myths About Long-Term Care Insurance infographic.

When Should You Consider Long-Term Care Insurance?

Many people start explore coverage in their late 40s to early 60s. Generally, the younger and healthier you are, the more affordable premiums tend to be.

If you’re not sure whether it makes sense for your situation, our Is Long-Term Care Insurance Right for Me? checklist can help. It’s a quick way to reflect on your personal preferences, risk tolerance, and financial goals.

Here are a few questions to consider:

• Have I planned for how much long-term care could cost?
• Would paying out of pocket impact my financial plan?
• Do I want to have more control over where and how I receive care?
• Would my family face financail, or emotional strain if I needed extended care?

If any of these questions hit home, now may be a good time to talk through your options.

Let’s Build a Plan That Works for You

Long-term care planning isn’t about preparing for the unexpected. It’s about having more choices, more clarity, and more confidence about the future. 

Whether you’re just starting to explore coverage or want to undersand how it fits into your bigger retirement strategy, we’re here to help. Schedule a quick 10-minute call with our team and let’s think it through together.