A long-term care plan lays out your wishes in case of incapacitating illness or injury. It defines both how you want to receive care if you become unable to perform daily activities, as well as how to pay for it. You may require long-term care as you age, or you may need it unexpectedly, as you might after a stroke, heart attack or car crash. You may never need it all, but long-term care planning is a necessary part of your financial plan.

Consider a few facts about long-term care:

  • Long-term care refers to the assistance required when a person is unable to perform activities of daily living due to illness, accident, cognitive problems, or the frailties of old age. This custodial care includes needing help with bathing, dressing, eating, toileting, continence, and transferring.
  • Medicare doesn't cover most long-term care expenses.
  • Medicaid only covers nursing-home care once a person has depleted his or her assets to poverty levels.
  • The nationwide average cost for a private room in an assisted living facility is $3,450 per month.*
  • The nationwide average cost for a private room in a nursing home is more than $84,000 per year.*
  • Care at home can range from $30,000 to more than $100,000 per year, depending on the geographic location and the level of care needed.
  • Actual cost of care will vary in each state. View the most recent cost of care in your state.

The best time to plan for the possibility of long-term care is well before you need it. We encourage our clients to have a conversation with their families, and can provide information and resources to help you make these important decisions. We’ll also coordinate between your long-term care plan and your financial plan to make sure you’re covered.

*According to the Genworth 2014 Cost of Care Survey