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How to Pay for Long-Term Care

person counting 20 dollar bills
January 17, 2022 Long Term Care Planning

With nursing homes costing upwards of $8,000, $9,000 per month, long-term care can be very expensive. Although you might assume you’ll never require professional care, the reality is 70% of seniors will need long-term care at some point. So, the question is—how will you pay for this care? Fortunately, you have a few options to cover these costs.

Long-Term Care Insurance

The best way to pay for long-term care is by purchasing a Long-Term Care Insurance (LTCI) policy. LTCI allows you to set aside funds to cover future care costs. Plus, you can customize the policy to your budget and projected care needs. The key is LTCI must be purchased when you’re relatively young and healthy. Therefore, in order to pay for care using LTCI, you need to plan ahead.

Read More: When Should You Buy Long-Term Care Insurance?

Out of Pocket

Since long-term care is expensive, paying out of pocket—for many individuals—means depleting their entire life savings in a matter of months. If you did not plan ahead by purchasing LTCI, you might think paying out of pocket is your only option. In reality, covering care costs out of pocket for an extended period is only feasible for those with a high net worth—above $2,000,000. Fortunately, there is another way.


If you failed to put a long-term care plan in place ahead of time but you now require care, you can use Medicaid to help cover your care costs—even if you think you have too many assets to qualify. With the help of a planning professional, you can strategically spend down your excess countable assets to meet Medicaid’s strict limitations. This allows you to protect your savings while accelerating your eligibility for benefits.

Learn More: What is a Medicaid Compliant Annuity?

What about Medicare?

Many seniors believe their long-term care costs will be covered by Medicare. Unfortunately, Medicare only covers the cost of a nursing home stay for rehabilitative purposes after a qualifying hospital stay of at least three days. Plus, this coverage only lasts for a maximum of 100 days and only as your condition continues to improve.

Read More: How Much Does Medicare Pay for Long-Term Care?

If you’d like to explore your options for paying for long-term care in more detail, we invite you to watch our in-depth presentation, Eliminating the Financial Burden of Long-Term Care. Feel free to reach out to our team at Senior Care Counsel at (844) 412-4222 with any questions. We look forward to connecting with you!



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"Paying for Long-Term Care - The Essential Senior Guidebook"

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