In life, there are many unpredictable aspects that one can combat by being prepared and planning. Whether you are going through a divorce, lost a spouse, or are getting ready for retirement, it is important to know all about planning for these changes and transitions. More specifically, let’s talk about long term care in retirement. Do you know how much it costs for long term care insurance? Or even long term care itself? Well, we’re going to break down everything you need to know, including the costs.

Why is it important to have long-term care insurance?

When you work every day, sometimes society forgets to plan for life after work. The older we get, we’d rather focus on our financial independence, rather than investing our money.

Because of the financial commitments that come with planning, most people don’t think it’s necessary to plan that far ahead. It’s a “let’s cross that bridge when we get there” mentality.

Unfortunately, just like Covid-19 took the world by surprise, anything can happen. Life can throw curve balls, so make sure you have all your bases covered!

Long-term care is something that many do not like to think about, especially those who love to take care of themselves. Pushing aside the planning aspect can come with consequences. Life without LTCI can be brutal on your wallet if your income level is not financially equipped to handle the costs. According to CBS News, 84% of people said they don’t feel financially prepared for LTCI.

If you’re going to try to pay out of pocket, LTC is estimated around $150,000. Medicare will not cover the costs of LTC services. If this describes your situation, then it’s time to start saving and planning for the future.

It is important to do your research on all LTC plans.

Types of long-term care insurances

LTC is not just one size fits all. Below are the different types of LTC services: 

Independent living communities This can be anywhere from $1,500 – $4,000/month

Assisted living communities

This averages $4,000/month

Nursing homes
Private rooms average $8,500/month and semi-private rooms average $7,500/month

Residential care homesAverages $3,500 to $4,500/month

Alzheimer’s careAverages $5,000/month

In-home careRanges from $4,290-$4,385/month

It is important to do in depth research in determining which LTC service and location is best for you. It’s never too early to start planning for your future!

Any opinions are those of the author and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional​.