What Is Long-Term Care and How Much Does It Cost?

It’s basically the help someone might need later on with everyday things, especially if they’re dealing with aging or health issues. I’m sure all of us can think of a friend or loved one in our lives who has needed extra help as they have got older, I know I have.

Here are a few options, depending on what’s needed. Let’s go through them:

1. In-Home Care:
This is for people who want to stay in their own homes but could use a hand with daily activities—things like bathing, cooking, or managing medications. You only pay for the hours you need, so it’s flexible. Costs may start around $25 to $35 an hour. If you just need a few hours a week, that might mean a few hundred dollars a month. For more regular help, though, it could be a few thousand each month. You may also be lucky enough to either live with family or have them close by and they may also be able and willing to help out for free.

2. Assisted Living:
Picture a community setting where people have their own rooms or apartments, but with support nearby. There’s help with items such as meals and transportation, and maybe some medical care, too. Assisted living generally costs about $3,500 to $5,000 a month, depending on where you are and what services are included.

3. Nursing Homes:
These are for individuals who need more intensive, around-the-clock care. So, not surprisingly, they’re the priciest option, running between $7,000 and $12,000 a month. It’s a big jump in cost, but they offer full medical support and supervision.

4. Memory Care:
This is for people with Alzheimer’s or dementia who need specialized care in secure facilities. Memory care units are usually part of an assisted living or nursing home setup, with monthly costs from about $5,000 to $10,000+.

It sounds like a lot, right? It can be. That’s why planning ahead can really help. There are options such as long-term care insurance or health savings accounts that let you set money aside specifically for these kinds of expenses. It’s also worth exploring what services are available locally for free in advance of any potential needs that may arise. You might not think you need it now, but having a plan means you (or your family) won’t be scrambling if the time comes.

If this has been on your mind, it’s worth looking into the options now, even if it’s just to feel more prepared.

In our next blog post we will talk in more detail about some of the ways you could fund long term care depending on your personal financial, lifestyle and taxation scenario.

**Please note any costs mentioned are just estimates and can vary a lot depending on multiple factors.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
These policies have exclusions and/or limitations. The cost and availability of life insurance depend on factors such as age, health and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Guarantees are based on the claims paying ability of the issuing company. Long Term Care Insurance or Asset Based Long Term Care Insurance Products may not be suitable for all investors. Surrender charges may apply for early withdrawals and, if made prior to age 59 ½, may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income. Please consult with a licensed financial professional when considering your insurance options.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Mark Vivian and not necessarily those of Raymond James.