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Long-Term Care Planning

| August 14, 2014
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By Michael Leanza, CFP®

Many people will face decisions regarding long-term care for an elderly loved one at some point in their life. Long-term care is sustained care in a hospital, nursing facility or the equivalent care delivered at home. This care meets the needs of people when they can no longer care for themselves due to significant physical or mental impairment.  Below are a few statistics regarding long-term care: 

1 in 4 families provide care to an elderly relative
The average stay in a long-term care facility is 3.8 years
The annual cost for long-term care is significant:
        Assisted Living: $38,000/yr
        Home Health Care: $44,000/yr
        Nursing Home: $80,000/yr


Relying on Medicare to cover these costs may not be the best option since it only covers the first 100 days’ expenses in a skilled care facility. Private health-insurance is not an option either, as most policies exclude coverage for long-term care. Without long-term care benefits, the cost of these services could fall on your personal resources. 

Long-term care insurance is a useful financial planning tool that can help protect your assets. It may help you avoid physical or financial dependence on others and allow you to choose how and where to receive care. 


Long-term care insurance isn’t right for everyone, so if you’d like to know what your options are for coverage speak to your financial advisor who will be able to acquire quotes for you from multiple carriers.

Source: U.S. Department of Health and Human Services, National Clearing House for Long Term Care Information, May 2010

Genworth Financial Claims Data, December 2009

Tracking # 1-147255
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