Planning Ahead for Long-Term Care

When we picture retirement, we think about travel, grandkids and hobbies, not needing help getting dressed or managing medications. But roughly 70% of people over 65 will need some form of long-term care. Long-term care isn’t only a medical issue. It’s a financial one, and without a plan, the cost can quickly drain a lifetime of savings.

At a glance

70%

Of people over 65 will need some form of long-term care

$129,575

A year for a private nursing home room, national average

When we picture retirement, we think about travel, grandkids and hobbies, not needing help getting dressed or managing medications. But roughly 70% of people over 65 will need some form of long-term care. Long-term care isn’t only a medical issue. It’s a financial one, and without a plan, the cost can quickly drain a lifetime of savings.

At a glance

70%

Of people over 65 will need some form of long-term care

$129,575

A year for a private nursing home room, national average

When we picture retirement, we think about travel, grandkids and hobbies, not needing help getting dressed or managing medications. But roughly 70% of people over 65 will need some form of long-term care. Long-term care isn’t only a medical issue. It’s a financial one, and without a plan, the cost can quickly drain a lifetime of savings.

At a glance

70%

Of people over 65 will need some form of long-term care

$129,575

A year for a private nursing home room, national average

What it costs

The Real Cost Of Care

Long-term care costs have outpaced general inflation, making them one of the largest potential expenses in retirement. What you pay depends on where care is provided and how much hands-on help you need.

What it costs

The Real Cost Of Care

Long-term care costs have outpaced general inflation, making them one of the largest potential expenses in retirement. What you pay depends on where care is provided and how much hands-on help you need.

What it costs

The Real Cost Of Care

Long-term care costs have outpaced general inflation, making them one of the largest potential expenses in retirement. What you pay depends on where care is provided and how much hands-on help you need.

Recent national averages · per year

Where Care Happens Changes The Cost

Chart data
Label	Value	Group	Planning target
Assisted living	$74,400
In-home care (non-medical)	$80,080
Nursing home, private room	$129,575

In-home care: $35 an hour for 44 hours a week. Assisted living: $6,200 a month. Nursing home: $355 a day.

Recent national averages · per year

Where Care Happens Changes The Cost

Chart data
Label	Value	Group	Planning target
Assisted living	$74,400
In-home care (non-medical)	$80,080
Nursing home, private room	$129,575

In-home care: $35 an hour for 44 hours a week. Assisted living: $6,200 a month. Nursing home: $355 a day.

Recent national averages · per year

Where Care Happens Changes The Cost

Chart data
Label	Value	Group	Planning target
Assisted living	$74,400
In-home care (non-medical)	$80,080
Nursing home, private room	$129,575

In-home care: $35 an hour for 44 hours a week. Assisted living: $6,200 a month. Nursing home: $355 a day.

Coverage

Who Actually Pays?

Coverage

Who Actually Pays?

Coverage

Who Actually Pays?

Many retirees believe Medicare will cover long-term care. It won’t. Medicare is designed for acute care like doctors, hospitals and short-term rehab after surgery, and it generally doesn’t cover custodial care (help with daily living) when that’s the only care you need. Medicaid does cover long-term care, but only after you’ve spent down nearly all your assets to meet strict eligibility limits.

Source	Covers long-term custodial care?	The catch
Medicare	Generally no	Designed for acute care: doctors, hospitals and short-term rehab after surgery
Medicaid	Yes	Only after you've spent down nearly all your assets to meet strict eligibility limits
Private insurance	Yes	You pay premiums; options and costs vary by policy type

Source	Covers long-term custodial care?	The catch
Medicare	Generally no	Designed for acute care: doctors, hospitals and short-term rehab after surgery
Medicaid	Yes	Only after you've spent down nearly all your assets to meet strict eligibility limits
Private insurance	Yes	You pay premiums; options and costs vary by policy type

Source	Covers long-term custodial care?	The catch
Medicare	Generally no	Designed for acute care: doctors, hospitals and short-term rehab after surgery
Medicaid	Yes	Only after you've spent down nearly all your assets to meet strict eligibility limits
Private insurance	Yes	You pay premiums; options and costs vary by policy type

Your options

Private Insurance Options

Your options

Private Insurance Options

Your options

Private Insurance Options

Hybrid life and long-term care

Combines life insurance with a long-term care rider: if you need care, you can use the death benefit to pay for it, and if you don't, your heirs receive the life insurance payout. That removes the "use it or lose it" worry of older policies.

Most coverage per dollar

Traditional long-term care insurance

Works like auto insurance: you pay a premium, and the policy pays if you need care. It can offer the most coverage per dollar, but many carriers have raised premiums on older policies, often by 20% to 50%.

Hybrid life and long-term care

Combines life insurance with a long-term care rider: if you need care, you can use the death benefit to pay for it, and if you don't, your heirs receive the life insurance payout. That removes the "use it or lose it" worry of older policies.

Most coverage per dollar

Traditional long-term care insurance

Works like auto insurance: you pay a premium, and the policy pays if you need care. It can offer the most coverage per dollar, but many carriers have raised premiums on older policies, often by 20% to 50%.

Hybrid life and long-term care

Combines life insurance with a long-term care rider: if you need care, you can use the death benefit to pay for it, and if you don't, your heirs receive the life insurance payout. That removes the "use it or lose it" worry of older policies.

Most coverage per dollar

Traditional long-term care insurance

Works like auto insurance: you pay a premium, and the policy pays if you need care. It can offer the most coverage per dollar, but many carriers have raised premiums on older policies, often by 20% to 50%.

What to do

Your Action Plan

The best time to plan is while you’re healthy and have the most options. Waiting for a diagnosis or a fall usually means fewer choices and higher costs.

What to do

Your Action Plan

The best time to plan is while you’re healthy and have the most options. Waiting for a diagnosis or a fall usually means fewer choices and higher costs.

What to do

Your Action Plan

The best time to plan is while you’re healthy and have the most options. Waiting for a diagnosis or a fall usually means fewer choices and higher costs.

01

Talk

Have the family conversation

Don't make your spouse or children guess. Where would you prefer to receive care? Who should manage your finances if you can't?

02

Document

Update legal and digital documents

Keep your durable power of attorney and healthcare proxy current, and set up a digital estate plan so your family can reach your health portals and financial accounts in an emergency.

03

Prepare

Audit your home

Most people want to age in place. Could you live on the first floor? Are there trip hazards or narrow doorways? Small changes now can prevent major injuries later.

04

Fund

Make it part of your retirement plan

A financial professional can help you decide whether to self-fund, use a hybrid policy, or use a Health Savings Account to pay for qualified care tax-free.

01

Talk

Have the family conversation

Don't make your spouse or children guess. Where would you prefer to receive care? Who should manage your finances if you can't?

02

Document

Update legal and digital documents

Keep your durable power of attorney and healthcare proxy current, and set up a digital estate plan so your family can reach your health portals and financial accounts in an emergency.

03

Prepare

Audit your home

Most people want to age in place. Could you live on the first floor? Are there trip hazards or narrow doorways? Small changes now can prevent major injuries later.

04

Fund

Make it part of your retirement plan

A financial professional can help you decide whether to self-fund, use a hybrid policy, or use a Health Savings Account to pay for qualified care tax-free.

01

Talk

Have the family conversation

Don't make your spouse or children guess. Where would you prefer to receive care? Who should manage your finances if you can't?

02

Document

Update legal and digital documents

Keep your durable power of attorney and healthcare proxy current, and set up a digital estate plan so your family can reach your health portals and financial accounts in an emergency.

03

Prepare

Audit your home

Most people want to age in place. Could you live on the first floor? Are there trip hazards or narrow doorways? Small changes now can prevent major injuries later.

04

Fund

Make it part of your retirement plan

A financial professional can help you decide whether to self-fund, use a hybrid policy, or use a Health Savings Account to pay for qualified care tax-free.

Keep control

Take The Next Step Now

Planning for long-term care is about keeping control. The earlier you start, the more options you have, and even small steps today can make a meaningful difference later.

Keep control

Take The Next Step Now

Planning for long-term care is about keeping control. The earlier you start, the more options you have, and even small steps today can make a meaningful difference later.

Keep control

Take The Next Step Now

Planning for long-term care is about keeping control. The earlier you start, the more options you have, and even small steps today can make a meaningful difference later.

This material is for informational purposes only and is not intended as a solicitation or as legal, tax, Social Security or investment advice. Consult your tax advisor or attorney for specific advice. Not affiliated with the U.S. Government. Insurance guarantees are backed solely by the financial strength and claims-paying ability of the issuing insurance company.