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Know the Cost of Long Term Care

We know that long term care costs are rising and can have a catastrophic affect on the finances of seniors and their families. Having a dollar amount to put on those costs can help you impress upon your clients the importance of long term care planning.

Take a look at the national average annual cost.

Type of Care Annual Cost Annual Cost Increase Over Past Five Years
Homemaker Services (help with household chores, etc) $44,616 2%
Home Health Aide $45,760 1%
Adult Day Care $17,904 3%
Assisted Living Facility $43,200 2%
Nursing Home $80,300 semi-private room, $91,250 private 4%

Unsurprisingly, the average cost in California is noticeably higher.

Type of Care Annual Cost Annual Cost Increase Over Past Five Years
Homemaker Services (help with household chores, etc) $51,480 2%
Home Health Aide $52,624 2%
Adult Day Care $20,000 0%
Assisted Living Facility $45,000 1%
Nursing Home $89,396 semi-private room, $104,025 private room 4%

And remember, these are national and state averages. In areas in and around San Francisco, for example, home health services average over $60,000 a year and nursing home care runs well over $100,000 a year even for a shared room, reaching as high as $175,000 for a private room.

It’s also important to note that while single digit percentage increases may not seem like much on the surface, long term care has costs increasing faster than the rate of inflation. These are real, net cost increases, not simply cost of living adjustments.

You can check out costs in your area with this helpful interactive map from Genworth.

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