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Long Term Care

Long term care is needed by those who can't perform the basic tasks required to take care of themselves. This can include people suffering from a debilitating illness or chronic injury. The need for long term care can arise unexpectedly, often creating a large financial burden. This calculator can help you determine if you are financially prepared for this impending expense.

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Definitions

Estimated daily cost
This is your current estimated cost of long term care. According to the Genworth Financial 2010 Cost of Care Survey, the estimated average cost for a nursing home stay was $67,525 per year for a semi-private room. This is about $185 per day. The cost for a private room was $75,190 or $206 per day. Assisted living at home can cost more than $38,220 per year or $19.00 per hour for a home healthcare aid. All of these long-term care costs can be considerably higher in larger metropolitan areas.

Years of care
The number of years you expect to require long term care. The average stay in a nursing home is about 2.5 years, but can vary considerably.

Inflation rate
What you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI). The CPI for 2010 was 2.4%, as reported by the Minneapolis Federal Reserve. From 1925 through 2010 the CPI has long-term average of 3.1% annually. Over the last 30 years highest CPI recorded was 13.5% in 1980. We will increase the cost of your long term care by this rate each year.

Funds currently available
The total amount that you have saved or invested that would be available to pay for long term care expenses.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.


DISCLAIMER:

This calculator includes content that Genworth Financial did not write or compile. Any assumptions or opinions expressed or embodied in this item are solely those of the creator of the calculator. We do not guarantee how accurate or complete it is. The author did not create this calculator to provide investment, legal, or tax advice and we are not furnishing it to you for any such purpose; you may not use it to avoid any IRS penalty. You should ask your independent tax and legal advisors for advice based on your particular circumstances.

If this material states or implies that it was prepared or distributed to promote, market or recommend an investment plan or arrangement within the meaning of IRS guidance, or such use may be reasonably expected, then, as required by the IRS, the following also applies:

The tax information in this material was written to support the promotion or marketing of the transaction(s) or matter(s) addressed in this material.