Frequently Asked Questions about Long-Term Care

How is "long-term care" defined for insurance purposes? The typical long-term care insurance policy pays for skilled, intermediate, or custodial care received at home or in an adult day care setting, assisted living facility, or nursing home if a person is unable to perform two or more activities of daily living. What are "activities of daily living"? Activities of daily living including eating, bathing, dressing, toileting, and transferring from a bed to a chair independently. Who requires long-term care? According to a Henry J. Kaiser Foundation publication, 53% of services are received by adults age 65 and over, 44% of services are received by working age (18-64) adults, and 3% are received by children.

What are the chances that I will receive long-term care?

Approximately 70% of Americans require some form of long-term care during the course of their lives, according to the National Council on Aging.

How much do long-term care services cost?

Long-term care is frighteningly expensive. Paying out-of-pocket for long-term care services will quickly deplete most people's savings. And the situation is getting worse, not better. The current inflation factor for long-term care services used by the federal government is 10.8%. Home health care services average about $28 per hour, or $36,400 annually (assuming 5 visits/week at 5 hours/visit). Assisted living, which varies widely in price, averages $3,146 monthly, or $37,752 each year. And nursing home care, the most expensive option, averages $254 daily, or an incredible $92,710 per year!