Is LTC Really That Expensive?


Is LTC Really That Expensive?

Let’s put things in perspective first:  according to Genworth’s Cost of Care Survey for 2018, the annual national median cost of care in 2018 ranged anywhere from $18,720 to $100,000, depending on your needs. Breaking that down to monthly costs, that’s between from $1,560 - $8,364 a month to provide care for you or your loved one.

Where is this money coming from? How does this affect your portfolio? More importantly, if you need care for an extended period, how much will be left for your spouse to live on (or even fund their own care)?

Annual National Median Costs 2018

Homemaker Services:1 $48,048
Home Health Aide:1 $50,336

Adult Day Health Care:2 $18,720

Assisted Living Facility:3 $48,000

Semi-Private Room in a Nursing Home:4 $89,297
Private Room in a Nursing Home:4 $100,375

 

Now, let’s look at the cost of having a plan in place. If a 55-year-old couple were to purchase a $4500 monthly benefit, three-year policy adding inflation, the cost per month is just under $300. That would total $108k if paid for 30 years. Yes, $108 thousand sounds like a lot, but is it?

Since we wisely added inflation to the policy, our pool of money has grown to $393,216 per person!We spent $108k over 30 years to get $786,432 to spend on care.

The truth behind the numbers is simple. It’s more expensive NOT to have a LTC plan in place.

Don’t trust these numbers? I’ll get you your numbers, specific to you. #just ask

 

Genworth 2018 Cost of Care Survey, conducted by CareScout®, June 2018

1 Based on 44 hours per week by 52 weeks

2 Based on 5 days per week by 52 weeks

3 Based on 12 months of care, private, one bedroom

4 Based on 365 days of care