What will the world look like for boomers 30 years from now? They will be looking at spending $750,000 to $1.2 million for a three- to five-year long term care event.
“That’s why long-term care insurance is so important to securing a family’s financial futures, especially in the tough economic times we are experiencing today,” says Marianne Harrison, president, John Hancock Long-Term Care Insurance, in reaction to John Hancock’s new LTC study.
Currently, average costs of care in the United States are roughly $75,000 annually for a private room in a nursing home; $67,000 annually for a semi-private room in a nursing home; and $35,000 annually for an assisted living facility, while the average cost of home care was found to be about $19 per hour, according to the study.
In comparison with a similar study in 2002, the increases in costs over the past six years appear to be tracking inflation, as measured by the Consumer Price Index during the same time period. According to the study, the average annual increase in the cost of long-term care is trending in line with the 3.3 percent average annual increase in the CPI during the same time period.