Long-Term Care · Cost Analysis

The real cost
of care

Show clients, in plain numbers, how likely long-term care is — and what it could cost. From there, the funding conversation writes itself: how much to self-fund, how much to insure.

Prepared for

Prepared by

Date

The Setup

Who are we planning for?

Person 1

Age

Sex

Person 2

Age

Sex

Care setting

Location

Assumptions

Care begins at age84

Years of care3 yrs

Annual cost today$70,800

Care cost inflation5.0%

Growth rate for set-aside5.0%

Lifetime probability of needing paid care: women 51%, men 39% (HHS/ASPE). Care costs are 2024 averages from the Federal Long Term Care Insurance Program Cost of Care Survey (illumifin), shown by metro region. The survey cites a 2.54% 30-year CPI average; long-term care has historically risen faster, so a higher inflation assumption is common.

The Numbers

70%

Person 1 — if care is needed

—

Person 2 — if care is needed

—

Set aside today to self-fund both

—

Lump sum in today's dollars

Projected cost of care

The real costof care

Who are we planning for?

The real cost
of care