Shortfall against your goal
$225,000 isn't paid for yet, in today's dollars. With care costs rising, that would be about $1,314,265 at age 80.
Joe has no long-term care coverage to pay for this.
$225,000 isn't paid for yet, in today's dollars. With care costs rising, that would be about $1,314,265 at age 80.
Jill has no long-term care coverage to pay for this.
Many people will need help with daily living later in life. How it's paid for decides who chooses your care — and whether it drains what was meant for the people you care about.
What care later in life could cost, and how much of it is not yet funded.
How families protect against this. Long-term care insurance protects your savings and your choices if you need care later in life, and the family who would otherwise pay for it or provide it. Care can last years and cost more than most savings, and coverage pays toward it so it doesn't use up what was meant for others.
If one of you needed long-term care later in life, what should we plan for?
Your goal: plan for 3 years in assisted living — $225,000 in today's dollars.
Where you are: Joe has no long-term care coverage.
| 3 years × $75,000 a year | $225,000 in today's dollars |
| The same care at age 80 (costs rising 4% a year for 45 years) | $1,314,265 in that year's dollars |
These care costs are our own planning estimate, not a published average.
$225,000 isn't paid for yet, in today's dollars. With care costs rising, that would be about $1,314,265 at age 80.
Figures in today's dollars.
| If it happened… | The gap then |
|---|---|
| Today | $225,000 |
| In 5 years (Joe would be 40) | $273,747 |
| At age 65 (in 30 years) | $729,764 |
| At age 80 (in 45 years) | $1,314,265 |
These figures include future price rises. Long-term care coverage, where there is any, pays a set amount that does not rise.
Care costs rise 4% a year — faster than prices in general (3%) — so care costs more the later it is needed.
If Joe needed care: what it would cost, by the age it starts
Your goal: plan for 3 years in assisted living — $225,000 in today's dollars.
Where you are: Jill has no long-term care coverage.
| 3 years × $75,000 a year | $225,000 in today's dollars |
| The same care at age 80 (costs rising 4% a year for 45 years) | $1,314,265 in that year's dollars |
These care costs are our own planning estimate, not a published average.
$225,000 isn't paid for yet, in today's dollars. With care costs rising, that would be about $1,314,265 at age 80.
Figures in today's dollars.
| If it happened… | The gap then |
|---|---|
| Today | $225,000 |
| In 5 years (Jill would be 40) | $273,747 |
| At age 65 (in 30 years) | $729,764 |
| At age 80 (in 45 years) | $1,314,265 |
These figures include future price rises. Long-term care coverage, where there is any, pays a set amount that does not rise.
Care costs rise 4% a year — faster than prices in general (3%) — so care costs more the later it is needed.
If Jill needed care: what it would cost, by the age it starts
Each one shows how your result would change if something were different. They are not advice about what you should do.
Try your own what-if
If Joe needed assisted living for 3 years starting at age 80
It would cost about $1,314,265 at that age, in the dollars of that year ($225,000 in today's dollars). In today's dollars, $225,000 of that isn't covered by anything in place.
Joe and Jill: if care costs rose 6% a year
The cost of care, in the dollars of the year it starts, would be about $3,097,037 instead of $1,314,265. See it on its own
Joe and Jill: if care started at age 85
The cost of care, in the dollars of the year it starts, would be about $1,599,004 instead of $1,314,265. See it on its own
Joe and Jill: if care lasted 5 years
The gap would go up by $150,000, from $225,000 to $375,000. See it on its own
Joe and Jill: if care were in a nursing facility
The gap would go up by $135,000, from $225,000 to $360,000. See it on its own