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.
- Estimated daily cost
- This is your current estimated cost of long term care. According to the Genworth Financial 2009 Cost of Care Survey, the estimated average cost for a nursing home stay was $66,886 per year for a semi-private room. This is about $183 per day. The cost for a private room was $74,208 or $203 per day. Assisted living at home can cost more than $33,466 per year or $18.50 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), which has a long-term average of 3.1% annually, from 1925 through 2009. The CPI for 2009 was -1.0%, as reported by the Minneapolis Federal Reserve. 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 personal independent use and are not intended to provide investment advice. We can not 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.