Long-term care insurance is helping people remain in their homes longer

Long-term care insurance Coverage - Caretaker visiting Person at Home

This coverage is being included in retirement plans for people who want to avoid care facilities.

It isn’t uncommon for people to want to remain in their homes for as long as possible as they age, and long-term care insurance as a part of a retirement strategy is starting to grow in popularity once more.

The growth is slow, as the coverage is not cheap, but as people plan for the future, they see its value.

Assisted living communities and nursing homes are also not cheap, so as many people consider where they would like to age during the years in which they need some help to complete their day-to-day activities, many are choosing to do what they can to stay at home. Moreover, long-term care insurance becomes more appealing when considering that many will help to pay for nursing homes and assisted living communities as well, if the time comes that living at home – even with assistance – simply isn’t feasible anymore.

Long-term care insurance - care worker with elderly woman

According to 2024 estimates from the Genworth Cost of Care Survey, the monthly cost of a home assistance worker is about $5,604 per month (about $65,004 per year). If a home health worker is needed, that figure is even higher, at $67,504 per year. Moreover, that’s the price predicted for this year. Looking into the future, that cost is only likely to continue rising. Furthermore, it doesn’t take into account additional expenses of aging at home, such as meal preparation services and any necessary home renovations.

Long-term care insurance policies can help to cover those costs, to make aging at home affordable.

It is for this reason that after years of declining interest in the coverage, people are starting to ask questions about its potential benefits as a part of a retirement strategy. Financial planning for retirement is meant to look into many different aspects of aging. This includes the additional fees associated with having assistance to remain at home.

“Long-term care insurance plays a very important role in allowing individuals to age at home by providing financial support for necessary care services,” said financial advisor Justin Stivers, Stivers Law founding attorney. “This type of insurance covers a range of services, including in-home care, which makes it possible for individuals to receive assistance with daily activities at their home without having to move to a long-term care facility.”

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