You might already know that 70% of people over age 65 will need long-term care at some point in their lives.1 But did you know that 40% of the people currently receiving long-term care are between the ages of 18 and 64?
Planning for your long-term care needs isn't something that can be put off...especially with the rising cost of care.
How Much Does Long-Term Care Cost?
Every year, the cost of care goes up. According to a survey by the Mature Market Institute, the total cost of long-term care treatment can easily add up to $200,000.
But how do the costs get so high? It depends on what kind of care you need. Let's take a look at a few numbers from the 2019 Genworth survey of long-term care costs:
- Private nursing home room: The national median annual rate for a private nursing home room is $102,204. In 2017, it was $97,452. In 2013, it was $83,950. In 2008, it was $67,525. Those are huge increases...and it's not likely to go back down anytime soon.
- Monthly rate for a home health aide: The national median cost is $4,385.
- Monthly cost of adult day care: The national median cost is is $1,625.
- Monthly cost of assisted living community: The national median cost is $4,051.
How Do I Know What My Costs Will Be?
You can't predict the future, but you can make a general estimate of costs. Here are a few questions to ask yourself as you start figuring out how much you'll need:
- Your family history. Have others in your family needed daily care for long periods of time? If so, you can use their experiences to help estimate your own.
- Your current health. Do you have any health problems that may indicate a need for care sooner rather than later?
- Your age and gender. Women tend to live longer than men, which means they usually need care for 2-3 years longer, too.
- Your family situation. Do you have family members nearby who can help take care of you? If not, you'll need to plan on paying for 100% of your care.
- National averages. You can also refer to long term care statistics to help estimate your costs. AARP notes that the average nursing home stay is 2.5 years. Just multiply that by the yearly cost listed above to get a quick estimate.
The costs add up quick, no matter which type of care you might need. Some people look at these costs and wonder if they'll have to sell their home, sell off stocks or other investments, or depend on their family's generosity just to pay for the care they need.
You won't have to do any of that. I can help you create a plan to be sure these things don't happen, and it all starts with long-term care insurance.
If you're ready to look into plans and rates, call or send an email today!
1 Genworth Cost of Care 2019