About half of people turning 65 will need some paid long-term care, and costs can reach tens of thousands of dollars per year.
What it costs
Home health aides, assisted living and nursing homes cost from roughly $60,000 to over $110,000 a year depending on location and level of care. Costs rise faster than general inflation.
Who pays
Medicare covers only limited skilled nursing and rehabilitation. Medicaid pays for long-term care after you exhaust most assets. Private insurance, personal savings and family support fill the gap.
Planning options
Traditional long-term care insurance covers the cost but premiums can rise. Hybrid life insurance with an LTC rider guarantees a benefit. Wealthier households may self-insure, and an HSA can help. The best time to evaluate coverage is typically in your 50s.
Try the numbers
Use our Long-Term Care Cost Calculator to see this in practice. With its default example (Your age: 50; Age care may start: 82; Annual cost today: $85,000), it shows total projected cost: $930,814. Adjust the inputs to match your situation.
Key takeaways
- Medicare does not cover most long-term care.
- Hybrid policies avoid use-it-or-lose-it concerns.
- Evaluate options in your 50s.
This article is for general education and is not personalized financial, tax or legal advice. Rules and limits change; confirm current figures with official sources such as IRS.gov, SSA.gov and StudentAid.gov, or consult a qualified professional. © 2026 FinanzCalc.