Strengthen your financial health with long-term care insurance.


Long-term care insurance offers a method to help pay for extended care expenses.

As we age, many of us may need long-term care, which is covered by Medicare insurance only in the short term and under very strict conditions. In fact, almost 70% of people turning 65 will need long-term care at some point in their lives1.

However, with the ever-increasing cost of nursing home and in-home care, the expense for such care could be out of reach for many Americans. Long-term care insurance can be a solution to help manage these expenses2:

  • Homemaker services – $4,004/month
  • Adult day health care services – $1,560/month
  • Assisted living facilities – $4,000/month
  • Semi-private room nursing home care – $7,441/month
  • Private room nursing home care – $8,365/month.
Cost of LTC

*Assumes a 3% annual increase, which is the five-year annual inflation rate across a spectrum of long-term care services. This is a hypothetical illustration only.

A need for long-term care can result from an accident, illness, stroke, or other chronic conditions. In the event that something happened to you, those you love could be severely impacted as well. In fact, 62% of caregivers used their own retirement funds and savings to pay for the care of a loved ones3. Providing care doesn’t only impose a financial burden; it can also take the caregiver away from their other obligations like family and work.

The financial costs of long-term care can be staggering, and the emotional costs on you and your family can be even higher. When you purchase long-term care insurance, you aren’t just protecting yourself; you’re protecting them too.

What should you consider before you purchase long-term care insurance?

Daily benefit - Amount of money you will receive from the insurance company on a daily basis for your care.

Benefit period - Length of time you will receive payments from the insurance company once you need care.

Elimination period - Number of days you will pay for care before insurance begins to pay.

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Make long-term care insurance a part of your comprehensive financial plan.

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Associated Tags: Long-term care

Long term care is offered through insurance companies with which Waddell & Reed, Inc., has sales arrangements.

This information is provided for educational purposes only and may include references to concepts that have legal, accounting and tax implications. It is not to be construed as legal, accounting or tax advice, and is provided as general information to assist in understanding the issues discussed. It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Waddell & Reed does not provide tax or legal advice. Please consult with the appropriate professional regarding your personal situation prior to making any financial related decisions.

1U.S. Department of Health and Human Services, 2015
2Genworth Cost of Care Survey, 2018