MoneyMindedMoms: What Does Long-Term Care Cost?

A lot, you’re thinking? Sometimes, yes.

Prudential released a study in 2011 that said “Americans tend to overestimate the costs associated with long-term care, which amplifies their level of concern about paying for it.” That’s a nice way to say we get the “deer in headlights” fear whenever we think about it, so it’s easier not to think about it.

Big mistake. Huge mistake.

How do you get rid of the monsters under your child’s bed? Mommy or Daddy flips the light on and look under the bed to prove there’s nothing there.

So let’s shine the light on how much long-term care costs.

The cost of a home health aide to help with daily activities such as bathing, dressing, transferring from one place to another in our home and so forth ranges from $18-$27 an hour. Sitters and companions cost less.

Adult day care costs about $62 per day. If you watch the video about my client Mr. Duckett on my home page, you will know that he was able to continue his love of golfing three times a week by taking his precious wife Helen to adult day care while he golfed with his friends.

Assisted living averages a reasonable $3200 a month. These places are gorgeous! Some have the country club look and more importantly, spouses can stay together. You can have privacy in your own unit, or you can mingle with others. Someone is around to help you when you need it 24 hours a day with basic daily activities or if you fall and can’t quite make it back on your feet without help.

Why do I say $3200 a month is reasonable? Compared to the cost of a nursing facility, it is. A semi-private room in a nursing facility according to the Prudential study averages $215 per day and a private room averages $247.

Wow. Expensive. These costs have tripled in the last 20 years and are expected to triple in the next 20 years.

Can you see why long-term care insurance is essential for most Americans?

Phyllis Shelton is the President of LTC Consultants, a Nashville-based consulting company specializing in long-term care insurance consumer education and training since 1991. She experienced first hand the implications of long-term caregiving with her grandfather, mother and brother. Because the need is so great, she is now focused on helping consumers who don't have a local agent acquire long-term care insurance.