Why plan for long-term care?

A study by the Urban Institute and the U.S. Department of Health and Human Services shows that approximately 70 percent of Americans who reach the age of 65 will require some form of long-term care throughout their remaining years. While unpaid care from family members may be enough for some, nearly half will need additional paid assistance. Of those, approximately 24 percent will require more than two years of paid care, and 15 percent will spend two or more years in a nursing home. 

The cost of care varies greatly depending on location, length of care required, and the individual's specific needs. Additionally, payment options for these services also vary. Traditional Medicare, the public health insurance program for individuals over 65, does not cover long-term care beyond certain skilled care following hospitalization for an injury or illness. Some private Medicare Advantage plans offer supplemental coverage for services such as meal delivery and transportation to medical appointments, but it is limited.

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