Will You Actually Use Long-Term Care?

Will You Actually Use Long-Term Care?

Most of us tend to get busy in our everyday lives.  We can barely focus on what is coming up this week or month, let alone in the next 10, 20, or 30 years.  Part of our job as financial planners is to look ahead for our clients.  We identify potential opportunities and risks in the near and long-term and put our clients in a place to take advantage or protect.  One of those risks, long-term care, is so far away in most of our client’s minds that the risk does not always hit home.  It’s like buying a snow blower in the summer.  We know a storm might come this winter and we know we should buy that snow blower now when they are cheap, but…we ignore the problem.  Before we know it, we are knee-deep in snow again.  When risks are far enough away we diminish their harm, and procrastinate decisions.   Long-term care is a similar example, just on steroids.  Instead of shoveling snow in 6 months, we are talking about our end of life quality decades from now.  The risks are way bigger but so is the time to procrastinate, leaving us at the same place; indecision.  Or in mathematical terms:

So, let’s discuss how big the risks of long term care actually are, and also when and how long those risks, on average, could actually become reality.



The risk is that a long-term care expense later in life could wipe out your nest egg.  If you have enough saved this could seriously jeopardize your estate plans and influence the way you spend throughout your entire retirement years.  If you do not have enough saved, it could also jeopardize your quality of care.

Annual Median Long-Term Care Costs

Type Year National Pennsylvania

(Philadelphia Area)

New Jersey

(State Median)

Homemaker Services Today $45,760/yr $50,336/yr $48,048/yr
In 30 Years $111,072/yr $122,179/yr $116,625/yr
Home Health Aide Today $46,332/yr $51,480/yr $50,336/yr
In 30 Years $112,460/yr $124,955/yr $122,179/yr
Adult Day Health Care Today $17,680/yr $19,955/yr $22,100/yr
In 30 Years $42,914/yr $48,436/yr $53,643/yr
Assisted Living Facility Today $43,539/yr $52,560/yr $59,400/yr
In 30 Years $105,681/yr $127,577/yr $144,179/yr
Semi-Private Room Today $82,125/yr $114,975/yr $118,625/yr
In 30 Years $199,339/yr $279,075/yr $287,934/yr
Private Room Today $92,378/yr $127,750/yr $133,835/yr
In 30 Years $224,226/yr $310,083/yr $324,853/yr



The time component of all of this is not only when or if you might use long-term care services but also how long you might use them.  The previous numbers are annual costs.  For most people, the need for long-term care services is multiple years.


The chance of needing some type of long-term care services for a 65-year-old today


3.7 Years

  The length of stay for the average woman


2.2 Years

  The length of stay for the average man



   The percent of people that receive care for more than 5 years


Statistics provided by the U.S. Department of Health and Human Services

The chances are great that you might need some type of long-term care services and for several years at that.  That means if you are a 65-year-old woman, there is a 70% chance your total cost for long term care if you need want a private room could be $1,201,956 30 years from now!


Overall the risks of needing some type of long-term care service are great and the probability are also great.  Don’t use the same logic as your snow blower decision.  If you wait until the storm, it is too late.  Decide today to protect your future self and take control of the quality of your end-of-life care.  Call us today to discuss your personal situation and if Long-Term Care Insurance is right for you – 267-880-6116


Long-term care insurance policies contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. Your financial professional can provide you with costs and complete details. All policy guarantees are based upon the claims paying ability of the issuer.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.