If you are about to reach the retirement age, then this is an important statistics from 2022 to keep in mind.
- Seniors aged 65 have a nearly 70% chance of requiring long-term care services in the future.
- Women (3.7 years) stay in long-term care facilities longer than men (2.2 years).
- In 2016, roughly 8.3 million people received long-term care services in a regulated facility. (National Center for Health Statistics, 2019)
- And now with the senior population increasing, number of seniors requiring long term care is higher than 2016.
THE BOTTOM LINE
Make sure you have a plan to fund the care you’ll need in your later years. If long-term care insurance is unaffordable or unavailable to you, converting your life insurance policy may be a workable substitute. Explore your options with a trusted financial advisor to find the best option for yourself and your family.
OPTIONS TO PAY FOR LONG-TERM CARE
If thinking about paying for these costs on your own feels overwhelming, you have options. The three most common options include:
- A stand-alone long-term care insurance policy
- Addition of a long-term care rider to a life insurance policy
- Long-term care add-on to a fixed or indexed annuity
| Type of Care | Monthly Median Cost in 2020 |
|---|---|
| Adult Day Healthcare | $1,733 |
| Homemaker Services and/or Home Health Aide | $5,529 |
| Assisted Living Facility | $5,000 |
| Nursing Home: Semi-Private Room | $9,247 |
| Nursing Home: Private Room | $11,437 |
Nursing home care costs
$85,800 – $150,000
per year
($7,150-$12500permonth)
Assisted living facility cost
$51,600 – $61,000
per year
($4,300permonth)
Full-time in-home care costs
$4,385
permonth