Seniors turning 65 today have a 70 percent chance of needing extended care as they age. However, extended care comes with a hefty price tag.1
Nationally, the median annual cost of a nursing home is over $110,000 for a shared room, and the median annual cost of an assisted living facility is around $70,000. In-home care isn’t a bargain either. The median annual cost of a full-time home health aide is more than $75,000.
Unfortunately, most private health plans don’t cover long-term care, which may require you to pay out of pocket.2,3 That’s why it might be worth considering extended care insurance.
Policies can cover a wide range of services and expenses, including inhome care, rehabilitation, and end-of-life hospice care. Generally, the policies are structured so that you become eligible for benefits once you can no longer perform a set number of activities of daily living, such as bathing, dressing, eating, getting in and out of beds and chairs, and other areas that may lead you to require personal care.4
Several factors influence the cost and availability of extended care insurance, including age, health status, and the level of coverage.
Extended care policies also have expenses and limitations. You should consider determining your insurability before implementing a long-term care insurance strategy. Any guarantees associated with a policy are dependent on the issuing insurance company’s ability to continue making claim payments.
As your financial professionals, we can help you weigh the pros and cons of extended care insurance to make the best decision for your unique situation. If you’d like to learn more, please contact our office. We can send you some material and schedule an appointment.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.
1. Carescout.com, 2026
2. ACL.gov, 2026
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