Long-Term Care Insurance

Long-term care insurance (LTC insurance) is important coverage that provides valuable support and financial resources that help cover the cost of long-term care you might need in the event of an illness, accident, or through the normal effects of aging. By helping to protect your assets, and giving you choice and control over where you receive care–including in your home–LTC insurance helps you and your family face the future with confidence.

Long-term care is not just for the elderly. Did you know that:

  • At least 70% of people over age 65 will require some long-term care services at some point in their lives.
    U.S. Department of Health and Human Services, National Clearinghouse for Long-Term Care Information, www.longtermcare.gov, 2013.
  • Of those who have long-term care needs, 41% are under age 65.
    Georgetown University Long-Term Care Financing Project, “Long-Term Care Financing Policy Options for the Future,” June 2007.

The need for long-term care does not mean being confined to a nursing home. According to the U.S. Department of Health and Human Services, 80% of long-term care is provided at home. You can receive long-term care in a variety of settings, including:

  • Adult day care centers
  • Assisted living facilities
  • Nursing Homes
  • Hospice Facilities
  • Your Home

The cost of long-term care can be expensive depending on:

  • The type of care you need
  • How long you need it
  • Where care is received

The national average costs listed below are only for one year of care. A study by the Center for Retirement Research found that in most cases, care is needed for three years – while some individuals need care for a considerably longer period. When planning ahead, you’ll also want to take into account the rising cost of care, which on average has risen approximately 3.36% per year over the past six years.

In 2010, the national average cost of long-term care for one year in various settings:

Long-term care setting Cost
Nursing Home: Private Room $83,580 annually
Nursing Home: Semi-private Room $74,820 annually
Assisted Living Facility $39,516 annually
Home Health Care Aide $21 hourly
Adult Day Care $67 daily


In 30 years, long-term care is projected to cost over $250,000 per year. That’s $750,000 to $1,250,000 for a three-to five-year care event.

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