Planning For Long-Term Care
As part of your Brown Financial risk management review, we discuss the importance of protecting your wealth from the costs associated with a long-term care need. One of the biggest financial questions families face is how to pay for care later in life. The cost of aging services can vary widely depending on where in the country the care is administered, the level of support needed, the type of community chosen, and how long the care is required. Here are some important considerations as you secure your retirement plans:
Long-term care can be one of the largest retirement expenses. Across the nation, the median cost1 of assisted living is about $6,200 per month and a semi-private nursing home room is about $9,581 per month. In-home care by skilled professionals can easily exceed $10,000 per month. And while some of the costs of living outside of care are eliminated (like property taxes, homeowner’s insurance, home repairs, food, etc.), there are also other costs that are not included in the quoted cost of monthly care. Any type of care that requires professional help will result in a hefty monthly expense.
Independent living is usually the most affordable senior-housing option but it does not provide care.2 Recent national estimates put independent living at about $3,065 per month, though pricing varies by community and amenities. This option is often best for active adults who want housing, meals, social opportunities, and potential continuity of care without needing help with daily activities.
Insurance can help, but Medicare is not the answer for most custodial care.3 Medicare does not cover long-term custodial care in assisted living and nursing homes or at home, except in limited skilled-care situations. Private long-term care insurance and hybrid life- and long-term care policies may help offset these expenses and can be an important part of your retirement plan.
The cost of long-term care insurance coverage depends on age, health, and policy design. It is important to plan early. The American Association for Long-Term Care Insurance quotes4 a very basic long-term care policy that provides only $165,000 of benefit, without inflation protection, to cost roughly $950 per year for a 55-year-old male and about $1,500 per year for a 55-year-old female. Interestingly, couples often receive a discount, so the same level of coverage for a couple may only cost $2,080 per year. But age matters and at age 60, the cost of this same coverage increases 25% to $2,600 per year for the couple. In an example where a median level of care is required today, this would only cover about two years of expenses.
The best time to plan is before care is needed. The U.S. Department of Health and Human Services cites5 that about 48% of adults receive paid long-term care services but only 24% of adults receive more than two years of paid long-term care services and only 15% spend more than two years in a nursing home. Considering these risks, Brown Financial Advisory will care for you by helping you design a plan that works for you, your goals, and your family.
Sources:
1 Calculate the cost of long-term care near you. (2026, March 3). CareScout. https://www.carescout.com/cost-of-care
2 Schuman, T. & Wexler, R. (2026, April 24). Independent Living Costs in 2026. Senior Living. https://www.seniorliving.org/independent-living/costs/
3 Long-term care. (n.d.). Medicare. https://www.medicare.gov/coverage/long-term-care
4 How Much Does Long-Term Care Insurance Cost and Is It Worth It? (2025, February 13). National Council on Aging.
https://www.ncoa.org/article/how-much-does-long-term-care-insurance-cost-and-is-it-worth-it
5 What Is the Lifetime Risk of Needing and Receiving Long-Term Services and Supports? (2019, April 3). Office of the Assistant Secretary for Planning and Evaluation.
https://aspe.hhs.gov/reports/what-lifetime-risk-needing-receiving-long-term-services-supports-0
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