The Lowdown on Long-Term Care
Don\'t expect life, health or disability insurance -- or even government programs -- to cover nursing-home or assisted-living costs. Buying long-term-care insurance is your best bet.
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.
Video: Long-Term Care Insurance
-
Stock Market Today: Stocks Stabilize After Powell's Rate-Cut Warning
The main indexes temporarily tumbled after Fed Chair Powell said interest rates could stay higher for longer.
By Karee Venema Published
-
How Did O.J. Simpson Avoid Paying the Brown and Goldman Families?
And now that he’s died, will the families of Nicole Brown Simpson and Ron Goldman be able to collect on the 1997 civil judgment?
By John M. Goralka Published
-
403(b) Contribution Limits for 2024
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Published
-
SEP IRA Contribution Limits for 2024
SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $69,000 a year.
By Jackie Stewart Published
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Published
-
SIMPLE IRA Contribution Limits for 2024
simple IRA The maximum amount workers at small businesses can contribute to a SIMPLE IRA increased by $500 for 2024.
By Jackie Stewart Published
-
457 Contribution Limits for 2024
retirement plans State and local government workers can contribute more to their 457 plans in 2024 than in 2023.
By Jackie Stewart Published
-
Roth 401(k) Contribution Limits for 2024
retirement plans The Roth 401(k) contribution limit for 2024 is increasing, and workers who are 50 and older can save even more.
By Jackie Stewart Published
-
Is a Medicare Advantage Plan Right for You?
Medicare Advantage plans can provide additional benefits beneficiaries can't get through original Medicare for no or a low monthly premium. But there are downsides to this insurance too.
By Jackie Stewart Published
-
What You Must Know About the Different Parts of Medicare
Medicare Medicare can be complicated but we've got you covered. Here is a quick guide to the different benefits provided through each part.
By Jackie Stewart Last updated