‘Long-Term Care’ is a classification used by private insurance companies and government insurance regulators at the State and Federal levels. It is defined as a care necessity when at least two of the following Activities of Daily Living cannot be performed: Bathing, Dressing, Transferring, Toileting, Continence, and Eating.

Long-Term Care can be expensive. In the United States, the median annual cost for home health aide services in 2011 was $43,472. The median annual cost for an assisted living facility was $39,135. The median annual cost for a private room in a nursing home was $77,745.*  For a look at the average cost of care in your state,click here.

It is important to note that Health Insurance Policies do NOT cover Long-Term Care. And if you are planning now, then consider this: If Long-Term Care costs increase 5% annually over the next 15 years, the cost of a private nursing home room increases to over $161,000 per year!

Long-Term Care can be funded in several ways:

• Long-Term Care Insurance: Long-Term Care insurance can provide a solution that will defray the costs of Long-Term Care while protecting your assets, your family’s time, and other family members’ finances. It also gives the flexibility to choose the type of care and service providers that are right for you. Click here to learn more about Long-Term Care insurance.

• Family: You may be able to rely on your spouse, your children or other family members to take care of you, physically and financially. However, if you don’t expect to have family support or you aren’t sure if family members can provide the necessary help, this option may not be right for you.

• Self-funding: If you have sufficient assets and/or income, you can choose to pay out-of-pocket for the costs of Long-Term Care. It’s important to review your financial plan with and expert to determine whether self-funding is a viable and desirable option for you. For information about the current costs of Long-Term Care in your state, click here

• Government programs:  Medicare does not provide coverage for Long-Term Care.  Other government programs, such as Medicaid, may provide limited coverage for Long-Term Care, under certain circumstances, and only for those individuals who qualify. For example, Medicaid requires the depletion of any assets before providing benefits.  Click here for more information about Medicare and Medicaid.

* Source: Genworth 2011 Cost of Care Survey