Long Term Care

Cost of Services

Do you know anyone who has stayed in a nursing home or has needed professional home health care? Most of us do. A study by the U.S. Dept. of Health and Human Services indicates that people of age 65 face at least a 40% lifetime risk of entering a nursing home.  Long-term health care has far-reaching financial consequences that can have a significant impact on a family's savings and lifestyle.

Would you use up a significant part of your savings?  For people who enter a nursing home, the financial outcome can be worse: according to the Congressional Subcommittee on Aging, 70 to 80% of nursing home residents deplete their assets within 12 months.

Cost of Care ! Who Pays ???

Individuals and their families pay 42% of all long-term care costs from their own funds.2

    Medicare, Medicare supplement insurance, and major medical health
    insurance generally will not pay for long-term care expenses.3

1. American Council of Life Insurers, March 2000

2. Health Insurance Association of America, Long Term Care,
Knowing the Risk, Paying the Price 1997.

3. National Association of Insurance Commissioners - A
Shopper's Guide to Long-Term Care Insurance 1999.


Cost of Services: 2000 and 2030


5% Inflation

3% Inflation




Home Care
Home Health Aide
   per visit
 per year

Assisted Living
   per year
Nursing Home
   per year
Source: American Council of Life Insurers, March 2000
Notes: Per-year calculations for a home health aide assumes five visits per week.


Long Term Care Return                                     Top Return
Long Term Care Return                         Top Return