Long-Term Care Costs & Planning
Plain English
Long-term care — help with everyday activities like bathing or dressing, often due to aging or chronic illness — is generally not covered by regular health insurance or Medicare, which is why it needs its own planning.
What is it?
Long-term care refers to a range of services (in-home care, assisted living, nursing home care) helping people with everyday activities of daily living, typically due to aging, chronic illness, or disability — distinct from short-term medical treatment.
Why does it matter?
Regular health insurance and Medicare generally do not cover extended long-term care (Medicare covers only limited, short-term skilled nursing care under specific conditions) — many people are surprised to learn this only when a need arises.
How does it work?
Common ways people plan for long-term care costs include: self-funding from savings, long-term-care insurance, certain life insurance policies with long-term-care riders, and (for those who qualify based on financial need) Medicaid. See the Healthcare & LTC Costs calculator to project what a future cost might be in today's or future dollars.
Risks and limitations
Long-term-care costs vary enormously by region, level of care needed, and duration — a single national average can be misleading for planning a specific situation. Long-term-care insurance policies vary widely in what they cover and how premiums can change over time.
Questions to ask a professional
What would care cost in my specific region, and for how long might it be needed? Does my health insurance or any other coverage I have address long-term care at all? What are the realistic funding options for my situation?