Will You Be Ready if You Need Long-Term Care?

If you needed long-term care tomorrow, would you be prepared? November is Long-Term Care Awareness Month, a timely reminder to consider your options now, while you have the most choices.

Long-term care (LTC) is the help needed when everyday tasks like bathing, dressing, or getting around become more challenging. About 56% of Americans who reach age 65 will develop a disability serious enough to require long-term care.¹

The need for care can arrive suddenly, after a fall or a stroke, or slowly, as health and ability decline with age. Family members may want to help but be unable to because of their own health, jobs, or distance. Providing care is a significant commitment, especially since many people need care for more than one year. More than 25% of women and 17% of men will need care for five years or longer, according to the Department of Health and Human Services.¹

Today, about 51 million Americans are caregivers for an adult age 50 or older.² Many are also raising children: 29% of people caring for an adult also have children under 18 at home--that’s nearly 17 million Americans caring for two generations at once.³

Having a plan for long-term care can help protect you, your loved ones, and your retirement savings. As you consider how you might handle long-term care needs, here are a few things to keep in mind:

Medicare misconception

A survey of Americans with household incomes of $75,000 or more found that 58% believe Medicare covers the cost of LTC.⁴ It does not. Medicare covers a brief stay in a nursing or rehabilitation facility after a qualifying hospital stay, and it may cover part-time home health care if you're homebound. Medicare doesn't typically pay for ongoing help with the tasks of daily living, such as walking, bathing, and dressing, or for an extended stay in a skilled nursing or long-term care facility.⁵ Medicaid does play a role in some circumstances (more on that below), but Medicare alone won't cover ongoing long-term care.

Understanding long-term care costs

The cost of long-term care depends on where you live, the type of care you need, and the setting where you receive it. In 2025, the national median costs were:⁶

• Home health aide: $6,673 per month, or $80,076 annually (based on industry estimates of 44 hours per week for professional care)  
• Assisted living: $6,200 per month, or $74,400 annually
• Nursing home (private room): $10,798 per month, or $129,576 annually

Care from family has a cost too, even when there’s no bill. In 2024, family caregivers provided nearly 50 billion hours of care, delivering more than $1 trillion in value.⁷ Caregivers can also pay a personal price, with 38% reporting high emotional stress and 23% reporting difficulty caring for their own health as a result of their caregiving.⁸  

Paying for long-term care

Not everyone will need long-term care, but it helps to think through how you would pay for it in case you do. In general, long-term care is funded through:

Personal savings. Some retirees have accumulated enough wealth to pay the costs directly or can tap the equity in their home.

Insurance or annuities. Even substantial retirement savings can be affected by long-term care costs. Insurance policies and annuities with LTC-related benefits can help offset expenses and protect assets as part of a broader retirement income strategy.

Medicaid. This joint federal-state health care program provides coverage for people with limited financial means and helps pay for long-term care for many Americans. Eligibility rules vary by state and can be complex.⁹

Veterans' benefits. The U.S. Department of Veterans Affairs (VA) covers home and community-based services for all veterans who qualify and are enrolled in the VA program. Coverage of residential facility and nursing home costs through the VA is limited.¹⁰

Know your options

Your income, health, and savings can help you decide which option, or combination of options, works for you. If insurance or annuities are part of your plan, the primary options include:

Traditional LTC insurance. These policies may pay a set monthly amount to cover costs or reimburse care costs after you send receipts. The insurer will review your health to determine whether you qualify. If you do, your age and health help determine the cost of the policy. Premiums for new policies have risen in recent years, and many carriers have also raised premiums on existing policies to offset rising long-term care costs.

Life insurance with an LTC benefit. Some policies let you use part of the death benefit while you're living to cover LTC costs. Any death benefit not used for LTC goes to your beneficiaries, usually tax-free. A health review is required for new policies. If you already own whole or universal life insurance, you may be able to exchange your policy for one with LTC features.

Commission-free annuities. Guaranteed lifetime income from an annuity can help cover essential expenses, freeing up additional savings to pay for long-term care costs. Some annuities offer income multiplier options designed to help offset personal care costs if the owner is unable to manage daily self-care because of injury or illness. These features aren't technically long-term care insurance, but they can provide extra income when it's needed temporarily.

Annuities can also help protect savings from market volatility while offering opportunities for growth.*

Where to start

A well-thought-out long-term care plan can help protect your savings and should be an integral part of your overall retirement strategy. A plan can help you prepare for future health needs and help you feel more confident about protecting your income if you ever need care.

Get your free LTC Planning Guide

Ready to take the next step? Use DPL’s free guide to help start a productive long-term care planning conversation with your family and financial advisor.

Disclosures:

* All guarantees based on the claims-paying ability of the issuing insurance carrier.

¹ "Long-Term Services and Supports for Older Americans: Risks and Financing," ASPE Research Brief, U.S. Department of Health and Human Services. August 2022.

² "Family Caregiving for Adults Age 50+ in the United States," AARP Public Policy Institute. July 2026.

³ "Caught in the Middle: The Crucial Role of Sandwich Generation Caregivers," AARP Public Policy Institute. September 2026.

⁴ "2025 Nationwide Retirement Institute Long-Term Care Survey,” Nationwide Life Insurance Company. June 2025.

⁵"Long-Term Care," Medicare.gov. Accessed October 2026.

⁶"Cost of Care Survey," Genworth/CareScout. 2025.

⁷ "The Economic Value of Family Caregiving," AARP Public Policy Institute. March2026.

⁸"Caregiving in the US," AARP and National Alliance for Caregiving. July 2025.

⁹ "Medicaid Eligibility: 2026 Income, Asset & Care Requirements for Nursing Homes & Long-Term Care," American Council on Aging. February 2026.

¹⁰ "Geriatrics and Extended Care," U.S. Department of Veterans Affairs. October 2026.