November is Long-Term Care Awareness Month—a timely reminder to think about a topic many prefer to avoid. If you're like most people, the phrase "long-term care" might conjure images of nursing homes. But that common misconception causes many to dismiss long-term care planning as something that's "not relevant yet" or "only for the very elderly."
Reality is far different and far more relevant to your daily life.
What Long-Term Care Actually Covers
Long-term care isn't just about nursing facilities. It encompasses a wide range of services designed to help people who can no longer perform everyday activities independently due to chronic illness, disability, or cognitive impairment. This can include:
- In-home care from professional caregivers
- Adult day care programs
- Assisted living facilities
- Home modifications for safety and accessibility
- Respite care to support family caregivers
- Memory care for those with Alzheimer's or dementia
These services focus on maintaining quality of life and independence for as long as possible, often in your own home.
The Numbers Tell a Story
According to the U.S. Department of Health and Human Services, someone turning 65 today has almost a 70% chance of needing some type of long-term care services in their remaining years. For those who do need care, women require it for an average of 3.7 years, while men need it for an average of 2.2 years.
The costs are substantial. The 2024 Genworth and CareScout Cost of Care Survey shows that national median costs range from approximately $77,800 annually for in-home health aide services to $111,325 for a semi-private room in a nursing home and $127,750 for a private room, and these figures continue to rise each year.
Two Common Scenarios
Consider someone who experiences a significant health event in their late 70s, perhaps a stroke or serious fall requiring ongoing care assistance. Without long-term care planning in place, this person may face difficult choices: spend retirement savings intended to last decades, rely heavily on family members who may need to leave jobs to provide care, or spend down assets to qualify for Medicaid, which may limit care options and location choices.
Now consider the same health situation with comprehensive long-term care planning already in place. This person may have more flexibility: the ability to receive care at home for longer, choice of care providers and facilities, financial protection for a spouse's security, and relief for adult children from having to choose between their careers and caregiving responsibilities.
These scenarios aren't presented to suggest what's right for anyone. These are deeply personal decisions based on individual circumstances. Rather, they illustrate why understanding your options matters.
The Planning Gap
Many people assume their health insurance, disability coverage, or retirement savings will adequately cover long-term care needs. Often, that's not the case. Medicare provides only limited long-term care coverage under specific circumstances: up to 100 days in a skilled nursing facility following a qualifying three-day hospital stay, with full coverage only for the first 20 days. Regular health insurance typically doesn't cover custodial care. Even substantial savings can be depleted quickly by years of care costs.
Take the Next Step
Understanding your long-term care options, whether through insurance products, self-funding strategies, or other approaches, requires professional guidance tailored to your unique situation. Our advisors at Northern Lakes Financial can help you evaluate your current coverage, understand potential gaps, and explore strategies that align with your goals and circumstances.
November is as good a time as any to ask yourself: What's my plan?
Contact Northern Lakes Financial to schedule a conversation with Liz about long-term care planning.
Sources:
U.S. Department of Health and Human Services, Administration for Community Living. "How Much Care Will You Need?" ACL.gov, https://acl.gov/ltc/basic-needs/how-much-care-will-you-need. Accessed October 23, 2025.
Johnson, Richard W., and Judith Dey. "What Is the Lifetime Risk of Needing and Receiving Long-Term Services and Supports?" U.S. Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation, https://aspe.hhs.gov/reports/what-lifetime-risk-needing-receiving-long-term-services-supports-0. Accessed October 23, 2025.
Genworth Financial, Inc. and CareScout. "Genworth and CareScout Release Cost of Care Survey Results for 2024." Business Wire, March 4, 2025, https://www.businesswire.com/news/home/20250301584443/en/Genworth-and-CareScout-Release-Cost-of-Care-Survey-Results-for-2024. Accessed October 23, 2025.
"Long Term Care Coverage." Medicare.gov, U.S. Centers for Medicare & Medicaid Services, https://www.medicare.gov/coverage/long-term-care. Accessed October 23, 2025.