Long Term CareLong 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.
Definitions
- Estimated daily cost
- This is your current estimated cost of long term care. According to the 2005 MetLife Market Survey of Nursing Home and Home Care Costs, the estimated the average cost for a nursing home stay was over $64,000 per year for a semi-private room. This is about $176 per day. The cost for a private room was just over $74,000 or $203 per day. Assisted living at home can cost more than $38,000 per year or $19 per hour for a home healthcare aid. Both 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 2005. 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.
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