Long-Term Care Needs and Costs as We Age

As we age, the likelihood of requiring long-term care increases, making it essential to plan for future needs that facilitate independence and quality of life. Understanding the options available for aging in place or choosing assisted living facilities is crucial.

Key stats on aging and long-term care

According to a recent study, about 70% of Americans aged 65 and above will need some form of long-term care. On average, this care extends for 3.2 years, with 20% of seniors requiring care for over five years. Overall, Americans spend $475.1 billion on long-term care with Medicaid only covering 54% of the costs.¹

The high cost of assisted living

The cost of assisted living in the United States has reached an average of $4,500 per month ($54,000 annually) in 2024. These costs vary significantly based on the type of facility, its location and the level of care required, with specialized services like memory care or skilled nursing commanding significantly higher fees.²

Benefits of long-term care insurance

Services, such as home health care, assisted living, nursing home care and memory care, are not covered by Medicare. This is where long-term care insurance plays a vital role, helping to cover the substantial costs of these vital services.

How does long-term care insurance work?

• Eligibility for coverage: Coverage starts when a licensed health practitioner certifies your need for long-term care, backing this with a prescribed care plan.
• Choosing the elimination period: When you purchase a policy, you select an elimination period that you manage financially before the insurance benefits kick in.
• Options for receiving benefits: You can opt for a traditional reimbursement method post-elimination period or choose a cash benefit that eliminates the waiting period.
• Maintaining benefits: Your policy continues to provide benefits as long as you meet the health criteria, up to the maximum limits of the policy.

The increasing costs and demand for long-term care highlight the growing importance of securing long-term care insurance. It not only eases financial burdens but also secures peace of mind for the future.

Learn more about the protective benefits of Mutual of Omaha Long-Term Care Insurance and how it can help safeguard your finances and family.

¹aplaceformom.com/senior-living-data/articles/long-term-care-statistics

²ncoa.org/adviser/local-care/assisted-living/costs/

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