Long Term Care Frequently Asked Questions
And Answers

The information and data provided below from the American Association for Long-Term Care Insurance is based on data researched or gathered by the organization. Information may be used with proper citation (Data from the American Association for Long-Term Care Insurance, www.aaltci.org) unless as indicated otherwise. Live links to this webpage are appreciated. Thank you.

Popular Questions

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Long Term Care - QUESTIONS

What is long term care?

What types of long term care are available?

What is the real risk I will need long term care?

How much does long term care cost?

How do I pay for long term care costs?

When do people need long term care?

Where do people actually receive long term care?

Long Term Care Insurance - QUESTIONS

What Is Long-Term Care Insurance?

How Much Does A New Long-Term Care Insurance Policy Cost?

How Much Does A Linked Benefit Long-Term Care Policy Cost?

When Should I Buy Long-Term Care Insurance?

Long Term Care - ANSWERS

What is long term care?

According to the American Association for Long-Term Care Insurance, long term care involves a variety of services designed to meet a person’s health or personal care needs when they can no longer perform everyday activities on their own. In many cases, long term care is provided at home by informal caregivers, such as family members and neighbors. Most home-based care services involve personal care — help with everyday activities, also called “activities of daily living.” These activities include bathing, dressing, eating, and taking medications, as well as supervision to make sure a person is safe.

What types of long term care are available?

According to the American Association for Long-Term Care Insurance, long term care options include:
In-home care: Services provided at home by caregivers or healthcare professionals.
Assisted living: Facilities that provide housing and support services for individuals who need assistance with daily activities.
Nursing homes: Institutions offering comprehensive (or 'skilled') medical and personal care for residents.
Memory care facilities: Specialized environments designed for individuals with dementia or other cognitive impairments.

What is the real risk I will need long term care?

Here's the real answer. Your risk of needing long-term care is either 0% or 100%. The American Association for Long-Term Care Insurance tells people that averages are not relevant to your individual risk. You will see many reports that indicate that approximately 70% of adults who survive to age 65 will develop long-term service needs before they die. But these needs aren't always severe. Bottom line, you may never need any long-term care. Or you may need a lot of it. That's why it's smart to prepare for that risk.

How much does long term care cost?

According to the American Association for Long-Term Care Insurance, the median yearly cost for a full-time home health aide is $75,000. The annual cost for homemaker services, which include assistance with “hands-off” tasks such as cooking, cleaning, and running errands, is $68,600.

The national median cost for assisted living facility is $64,200 per year. And the national annual median cost of a semi-private room in a skilled nursing facility is $105,000. The cost of a private room in a nursing home averaged $116,800 for a year.

how-do-I-pay-long-term-care-costs

How do I pay for long term care costs?

According to the American Association for Long-Term Care Insurance, In 2024, the U.S. spent over $400 billion on long term support services (LTSS). Most of which went to home and community-based services. About $130 billion was spent on institutional LTSS such as nursing facility care.

Medicaid for more than half of the costs. Medicare pays very little. Veteran's benefits may pay. But, if you have to pay on your own, funding sources for long term care can include personal savings and insurance policies (such as long-term care insurance).

When do people need long term care?

Some people need long-term care because of birth defects. Others because of accidents or illnesses. But most people associate needing long-term care with aging.

Here's the real answer to your question. If you live a long-life, the chances are very high that you'll need long-term care. One way to answer the question is to look at when long-term care insurance claims begin.

According to the latest data from the American Association for Long-Term Care Insurance, 19% of long-term care insurance claims begin between ages 75 and 79. Some 27% begin between ages 80 and 84. 9% begin between 90 and 94. And 3% begin when the policyholder is age 95 or older. (2024 data)

Where do people receive long term care?

The majority of long-term care services are delivered in the home environment. This type of care often involves informal caregivers, such as family members, friends, or neighbors, who provide assistance with daily living activities. These activities include bathing, dressing, eating, and medication management.

When individuals require more extensive support than can be provided at home or through community services, they may move into residential facilities such as assisted living communities or nursing homes. These facilities offer a range of services from basic housing and housekeeping to comprehensive medical and personal care.

Nursing homes specifically cater to those needing 24-hour nursing supervision due to complex medical conditions or significant disabilities that prevent them from living independently. While these institutions represent a smaller portion of where long-term care is received compared to home-based options, they play a crucial role for those with severe health issues.

Long Term Care Insurance - ANSWERS

When should I buy long-term care insurance?

According to the American Association for Long-Term Care Insurance, the best ages are between 55 and 65. The average age of buyers today is around 57.

What matters most is your health when you apply. Because insurers will only issue policies to individuals who are in relatively good health. And, as we age, conditions arise that can result in you being uninsurable. That means you can NOT get this important coverage NO matter how much you would be willing to pay.

What is a long-term care insurance policy?

According to the American Association for Long-Term Care Insurance, long-term care insurance is a type of insurance designed to cover the costs associated with long-term care services. This may include assistance with daily activities such as bathing, dressing, eating, and mobility. These services can be provided in various settings, including nursing homes, assisted living facilities, or even at home.

Today, there are multiple forms of long-term care insurance. Traditional policies are generally the least costly because they specifically cover long-term care risks. There are also linked benefit or hybrid policies. These are generally life insurance policies or annuity contracts. Because they offer dual benefits (example, long-term care payout plus potential death benefit, they tend to cost more.

How much does a long-term care insurance policy cost?

The cost of long-term care insurance will vary significantly based on your age when you apply, your health when you apply, how much insurance coverage you purchase and the long-term care insurance company you buy from.

According to the 2024 Long-Term Care Insurance Price Index published by the American Association for Long-Term Care Insurance a 60-year old couple could pay between $2,600 and $5,800 yearly (combined cost for both).

The lower cost policy would provide each with $165,000 of long-term care benefits when they turn age 85. The higher cost policy would grow annually by 3% and would provide each spouse with $345,500 of benefits at age 85.

How much does a linked benefit long-term care policy cost?

According to the American Association for Long-Term Care Insurance, the cost of a linked benefit long-term care policy will vary significantly based on your age when you apply, your health when you apply, how much insurance coverage you purchase and the insurance company you buy from.

According to the 2024 Long-Term Care Insurance Price Index published by the American Association for Long-Term Care Insurance a 55-year old male could pay between $3,540 for a pool of long-term care benefits equal to $180,000. The minimum death benefit would be $120,000.

These policies are quite complex and one should really speak to a knowledgeable long-term care insurance specialist in order to fully understand the policy features and benefits.