Are Your Clients Prepared for Rising LTC Costs?
Over the years, we’ve observed clear and consistent trends in the long‑term care market. While the cost of care has increased across all provider types, facility‑based care has continued to rise at a faster pace than care delivered at home—placing growing pressure on retirement assets.
If you live to age 65, there is approximately a 70% chance you will need some form of long‑term care services during your lifetime.
This makes proactive financial planning essential for managing future care costs and protecting long‑term financial security.
Current Costs of Long‑Term Care
Most long‑term care claims are paid for home care or assisted living, both of which generally cost significantly less than skilled nursing care.
- Home Health Care Aide: The national median hourly rate for home health aide services is $35 per hour (2025).
- Assisted Living Facilities: The national median annual cost for an assisted living facility is approximately $74,400 per year, based on a median monthly cost of about $6,200 (2025).
- Nursing Home (Private Room): The national median annual cost for a private room in a nursing home is approximately $131,600 per year, based on current median monthly pricing (2025).
Projected Future Costs
As care costs continue to rise, your clients’ assets face increasing exposure. Assuming an average three‑year claim and a 3% annual inflation rate, the projected cost of a private room in a nursing home 25 years from now could exceed $240,000 per year, resulting in a total cost of roughly $720,000 over three years.
Without preparation, these expenses can quickly derail even well‑structured retirement plans.
Planning for Long‑Term Care
Given today’s cost environment, planning ahead is more important than ever. In 2024, long‑term care insurance carriers paid tens of billions of dollars in claims, continuing a multi‑year trend of historically high benefit payouts.
Yet despite the likelihood of needing care, only about 3% to 4% of Americans age 50 and older currently own long‑term care insurance.
Evaluating long‑term care insurance solutions can be a prudent step toward:
- Preserving retirement assets
- Providing flexibility in care choices
- Reducing the financial burden on family members
Contact your LTC Specialist today for assistance with your cases and client planning needs.