The odds say that you’ll need long-term care during your lifetime—and that it’s only a matter of time. About 70 percent of people ages 65 and over will need long-term care in their lifetimes. More than two-fifths of people in this age group report limited ability to perform daily living activities, including bathing, dressing, transferring, using the restroom, and eating.
The annual median cost of assisted living is $39,600; for semi-private nursing homes, it’s $73,000; and for private nursing homes, it’s $81,300. Can you afford these rates out-of-pocket? As is the case with most things, exact costs vary significantly throughout the country. The Northeast tends to be more expensive than the rest of the country. Also, median annual facility care costs are much higher in Alaska and Hawaii than the rest of the country.
In 2008, Medicaid only covered 52 percent of Long-Term care facility costs—41 percent of long-term care facility costs were out of pocket. How old will you be in 2040? By that year, a 3-5 year Long-Term stay is projected to cost between $858,000 and $1,430,000. Having Long-Term Care insurance can significantly reduce these costs.
By age 50, you really should be looking at Long-Term Care insurance. Are you? Please share in the comments, and do check out the infographic below by AssurePlan to learn more.