By the Numbers
Understanding the True Cost of
Long-Term Care
Going without a long-term care protection strategy could result in both financial and emotional ramifications. These are some of the potential impacts an unexpected health event could have to your pocketbook and your caregivers in retirement:
Financial
According to Nationwide’s comparison of long-term care costs from state to state, the average annual costs for these services are:1
$79,381
Informal Carea
$72,874
Home Carea
$67,085
Assisted Living Facilityb
$109,628
Nursing Homec
1 Nationwide. “Compare long-term care costs from state to state.” https://nationwidefinancialltcmap.hvsfinancial.com/. Accessed March 10, 2025.
a Based on 44 hours per week over 52 weeks
b Based on 12 months of care
c Based on 365 days of care
Emotional
Below are some of the possible impacts to caregivers in a long-term care situation.2
20% Caregiving responsibilities have limited their career growth and job opportunities
22% Split their time between full-time work and caregiving duties
40% Caregiving responsibilities have negatively impacted their stress levels
47% Experienced increased anxiety, depression or other mental health issue
50% Reported living paycheck to paycheck
26% Average amount of their income caregivers spend on caregiving-related expenses
2 Guardian. December 2023. “Standing Up and Stepping In: A modern look at caregivers in the US.” https://connect.guardiangroupbenefits.com/l/503851/2023-12-15/6yw1b6/503851/1702675399bBkGiG78/Guardian_12th_Annual_WBS_Standing_Up_and_Stepping_In_1215.pdf. Accessed March 10, 2025.
Now’s the Time for a Healthy Conversation
There’s a very real possibility you will need long-term care services during retirement. One difficult talk today could help save you and your loved ones years of heartache and financial hardship.
Did you know?
Long-Term Care Coverage Can Be an Asset for More Than Just Your Health
In addition to traditional long-term care insurance options, there are several other avenues available that can offer coverage options, including fixed premiums, tax-free death benefits* and flexibility to use benefit payments however you choose.
These options include:
Asset-Based Long-Term Care Insurance — Life Insurance
Long-Term Care Riders on Insurance/Annuity Products
Chronic Illness Riders on Insurance/Annuity Products
Asset-Based Long-Term Care Insurance — Annuities
Annuity Income “Doubler” for Confinement or Home Health Care
*Life insurance death benefits are generally tax-free to a properly named beneficiary. Life insurance agents do not give tax or legal advice.
LTC riders are NOT a replacement for long-term care insurance and involve specific terms and conditions. The addition of a rider may require an additional fee.
Don’t Let “What If” Become “What Now?”
It’s estimated that as many as 7 in 10 Americans age 65 and older will need some type of long-term care.³ This complimentary guide can help you understand possible costs and solutions, including:
Strategies to help protect your potential caregiver from financial burden
Estimated increases in long-term care costs
The true impact of long-term care
3 Barbara Marquand. NerdWallet. Sept. 11, 2024. “Long-Term Care Insurance Explained.” https://www.nerdwallet.com/blog/insurance/long-term-care-insurance/. Accessed March 10, 2025.
Schedule a Meeting
Be Proactive, Not Reactive
It’s never too early or too late to prepare for the unexpected — to help you enjoy life on your terms. Get started by scheduling a no-obligation meeting with Wealth Partners, Inc. or registering for an upcoming event.
Wealth Partners, Inc. offers insurance products and services. We do not provide tax or legal advice. We are not affiliated with any government agency. Life insurance and annuity products contain fees and charges, including surrender penalties, and may contain restrictions and limitations. Medical and financial underwriting may be required to qualify for life insurance or optional riders. Long-term care (LTC), chronic illness and other riders are not available on all insurance and annuity products. The addition of a rider may require an additional fee. Product and feature availability may vary by state. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company.
Liquidity from life insurance policies and annuities is generally in the form of policy loans and/or withdrawals, which may be subject to interest charges and surrender penalties and may reduce the ultimate death benefit and cash value. Loans and withdrawals may require additional premiums to keep the policy in force. Assumes the policy is not a modified endowment contract (MEC). Adverse tax consequences may result if withdrawals exceed premiums paid into the policy. Annuity distributions may be subject to ordinary income taxes and potentially a 10% IRS penalty (if taken before age 59 1/2).
3/25-4307871