Many Americans underestimate how likely they are to need long-term care—and what it might cost. With lifespans increasing and costs rising, preparing today can prevent financial strain and tough decisions later.
What Is Long-Term Care?
Long-term care (LTC) refers to services that help people who can’t fully care for themselves due to age, illness, or disability. This includes assistance with daily activities like bathing, dressing, eating, and moving safely. The goal of LTC is to help individuals maintain independence and quality of life as they age.
Who Will Need It?
- Roughly 70% of adults turning 65 will need some form of long-term care during their lifetime.
- Nearly 48% of adults will pay for LTC services at some point (ASPE, 2019).
- About 20% of adults age 65+ will require long-term care for longer than five years.
- Adults with chronic conditions like heart disease or dementia are significantly more likely to require LTC.
Where Care Happens
Long-term care is delivered in a variety of settings, each with different levels of support:
- Board & care homes: Small residential facilities offering meals and daily personal care, but limited medical services.
- Assisted living facilities: Communities that provide help with daily activities and some medication management.
- Skilled nursing facilities: Nursing homes offering 24/7 medical care, meals, and rehabilitation services.
- Continuing care retirement communities (CCRCs): Offer independent living, assisted living, and nursing care in one campus.
- Home-based care (“aging in place”): Care delivered at home by family members, caregivers, or health aides.
- Adult day care centers: Provide daytime supervision, meals, and activities for older adults needing part-time support. (National Center for Health Statistics, 2024)
The Cost of Long-Term Care
Long-term care is expensive, and costs continue to climb:
- A private nursing home room now averages $127,750 annually.
- A semi-private nursing home room averages $111,325 annually.
- Assisted living facilities cost about $70,800 per year.
- A home health aide averages $77,792 annually.
- Adult day care can cost $26,000 annually (Genworth Cost of Care Survey, 2024).
Nearly 1 in 5 adults turning 65 will face more than $200,000 in long-term care expenses over their lifetime.
How People Pay for LTC
- Medicare: Covers short-term skilled care after hospitalization, but not long-term custodial care (Medicare.gov, 2025).
- Medicaid: Provides LTC coverage for low-income individuals but requires meeting strict eligibility rules (KFF, 2024).
- Private pay: Families cover nearly half of LTC costs out of pocket.
- LTC insurance: Designed to help with these costs, but only about 3–4% of Americans age 50+ carry a policy (KFF Health News, 2023).
In 2021, total LTC spending in the U.S. exceeded $467 billion, with 71% paid by public programs like Medicaid and Medicare.
Why Planning Matters
With a 70% chance of needing LTC and costs exceeding $100,000 annually in many cases, planning early is crucial. Without preparation, families often face:
- Rapidly depleted savings.
- Limited access to quality care.
- Stressful decisions for loved ones.
Planning ahead ensures more flexibility, better choices, and financial protection.
Next Steps
- Evaluate your finances: Know your assets, savings, and projected expenses.
- Research care settings: Understand the differences between home care, assisted living, and nursing facilities.
- Review existing coverage: Know what Medicare, Medicaid, or private insurance actually cover.
- Consider LTC insurance: Buying early often means lower premiums and better options.
- Document care preferences: Ensure advance directives and care wishes are clear to your loved ones.
Bottom Line: Long-term care isn’t a remote possibility—it’s a reality for most Americans. At Inszone Insurance Services, we help you explore long-term care insurance and planning options to protect both your financial security and your peace of mind.
Contact us today at (877) 308-9663 or visit www.inszoneinsurance.com to learn more.
Sources and Further Reading
- ASPE (2019). What is the Lifetime Risk of Needing and Receiving Long-Term Services and Supports?
- Genworth (2024). Cost of Care Survey Results
- KFF (2024). Medicaid and Long-Term Services and Supports
- KFF Health News (2023). Why Long-Term Care Insurance Falls Short
- Medicare.gov (2025). What Medicare Covers in Skilled Nursing and Home Health Care
- National Center for Health Statistics (2024). Long-Term Care Facility and Utilization Data
Juan Cruz
