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How Much Will ‘Age in Place’ Cost? Now Consider the Value of Long-Term Care Insurance

Pop quiz: how much does it cost right now, on average, for basic long-term care? In order to answer this, we need to first understand there are many different types of long-term care. The most common include home care, assisted living, and nursing home care. If you don’t have a clue about the average cost of this or how much it will increase in the next 10 or 20 years, you may be putting yourself and your family at financial risk for not considering long-term care insurance.

Long-Term Care Insurance Premiums Encinitas CA - How Much Will ‘Age in Place’ Cost? Now Consider the Value of Long-Term Care Insurance

Long-Term Care Insurance Premiums Encinitas CA – How Much Will ‘Age in Place’ Cost? Now Consider the Value of Long-Term Care Insurance

Let’s first talk about the average cost.

When it comes to long-term care, the average cost right now for home care is about $45,000 annually for full-time care. That means for a home care aide to stop by 40 hours a week, on average, it will cost about $45,000 per individual.

For assisted living, the average cost of long-term care has increased to about $75,000. For nursing homes, the average cost is $85,000 per year, but in some states it is already over $120,000 annually.

How do those numbers strike?

Just taking a quick look at those numbers many people will immediately realize how quickly financially devastated they could be if they have to pay out-of-pocket for this for themselves, an immediate family member, and only for just a couple of years. In just three short years the average cost of nursing home care will equal $255,000.

With the baby boomer generation retiring and placing increased demand on these long-term care services, the cost will likely outpace inflation. Imagine 15 years from now the cost having skyrocketed to well over $140,000 per year. That means in just three years it might cost you $420,000.

Can you or your family survive that financial burden? Most people will immediately acknowledge they couldn’t survive that, so what’s the answer?

Long-term care insurance.

For those who wish to age in place — meaning, they will want to remain home, even if they struggle with their physical capabilities or other health issues — they will require home care support services. Full-time care or a live-in caregiver could financially devastate most people living in the United States right now.

Also, consider that 78% of Americans working full time right now are living paycheck to paycheck (CNBC). Americans are carrying tremendous debt, as well. It may not even be reasonable to consider paying for home care for yourself if you ever require it.

A long-term care insurance policy started early can be affordable for the monthly premium payments and provide years of financial support for these important services if and when they are necessary.

If you or a loved-one are considering Long-Term Care Insurance Premiums in Encinitas CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.

Steve Elliott

Long-Term Care Insurance Specialist at LTC Capstone Insurance
Steve Elliott with Capstone Financial Assurance is a Long Term Care Insurance Specialist

I work with all the major insurance companies and my objective is to help my clients determine if long term care protection makes sense for them and if so, to help them shop the market to find the best company at the best rate

I specialize in Traditional Long Term Care Insurance as well as Hybrid Long Term Care Plans which are either a combination of Life Insurance and Long Term Care or an Annuity Plan with Long Term Care

I’ve been specializing exclusively in Long-Term Care Insurance Planning for over 21 years.

Steve was recognized as a 2003 Long Term Care Expert of the Year at The National Long Term Care Producers Summit

2006 was awarded Senior Market Advisor of the Year Finalist by Senior Market Advisor Magazine

National Speaker for Numerous Industry Meetings

Awarded Nations Top 10 Agent 8 times by the American Association of Long Term Care Insurance

Author of numerous published articles on long term care planning