How would you pay for long-term care if you needed it? When baby boomers were asked this in a study commissioned by CareQuest, which helps employers set up long-term care packages, only 5% said they would rely on long-term-care insurance. Most said they expected life, health or disability insurance or government programs to cover the costs.
If that's what you're counting on, think again:
- Almost half the population will need long-term care at some point.
- The average length of stay in a nursing home is 2.5 years.
- The average annual cost for a private room at a nursing home is $74,095, according to MetLife Mature Market Institute.
- The average hourly cost of a health aide who gives in-home care is $19. It's double that for a licensed nurse. If you needed round-the-clock care from a nurse, you would have to pay more than $300,000 a year.
- You can't get long-term care insurance once you have a problem that requires long-term care.
Long-term care usually involves nonmedical help with such daily tasks as bathing and dressing. Health, life and disability insurance won't pay for that, nor will medicare. But long-term-care insurance will.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
People who don't have coverage have to pay out-of-pocket until they run out of money and become eligible for medicaid. However, a new law tightens the purse strings of the program that helps families pay for nursing-home care. And that makes owning long-term-care insurance even more of a necessity.
The stories below will show you why you need this insurance, what to look for in a policy and how to find affordable coverage. Plus, you can share your ideas on paying for long-term care.
Qualifying for government-paid nursing-home care has gotten tougher. So be prepared to pay for your own long-term care.
Understanding the New Medicaid Rules
These resources will help you follow developments in your state and learn about other changes in the law.
A Fresh Look at Long-Term Care
Long-term care coverage doesn't come cheap. But with some smart planning, you can buy all the coverage you need at a reasonable price.
Six Steps to Buying a Long-Term Care Policy
Protect your retirement savings from the potentially catastrophic expense of nursing-home care. Learn how to compare policies and purchase the one that is right for you.
Avoid these five blunders people commonly make when trying to cut premium costs.
Lower Your Long-Term Care Costs
Shortening the benefit period can lower your premium significantly while still providing a great deal of protection.
Community: What's the Future for Your Long-term Care?
Will you be able to pay for a nursing-home stay? Would revamping the nation's health-care system pay for more care? Share your questions and solutions with other Kiplinger's readers.
-
Your Guide to Open Enrollment and Health Insurance for 2025Open enrollment starts on November 1. With health care costs on the rise, it’s critical to select a plan that fits your needs at the right price.
-
Which States Will Bear the Brunt of Trump's Tariff Plan?Tariffs The presidential candidate’s campaign proposal would substantially increase prices in as many as 20 states.
-
Medicare Basics: 11 Things You Need to KnowMedicare There's Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare — and much more.
-
Six of the Worst Assets to Inheritinheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
-
403(b) Contribution Limits for 2024: Good News for Teachersretirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
-
SEP IRA Contribution Limits for 2024SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $69,000 a year.
-
Roth IRA Contribution Limits for 2024Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
-
SIMPLE IRA Contribution Limits for 2024simple IRA The SIMPLE IRA contribution limit increased by $500 for 2024 and workers at small businesses can contribute up to $16,000 or $19,500 if 50 or over.
-
457 Contribution Limits for 2024retirement plans State and local government workers can contribute more to their 457 plans in 2024 than in 2023.
-
Roth 401(k) Contribution Limits for 2024retirement plans The Roth 401(k) contribution limit for 2024 is increasing, and workers who are 50 and older can save even more.
