Retirement Advisors of America

Long Term Care Questions & Answers

1. What is long-term care?
Long-term care refers to the ongoing services and support needed by people who have chronic health conditions or disabilities. There are three levels of long-term care.
Skilled care: Generally round-the-clock care that given by professional health care providers such as nurses, therapists, or aides under a doctor’s supervision.

Intermediate care: Also provided by professional health care providers but on a less frequent basis than skilled care.
Custodial Care: Personal care that’s often given by family caregivers, nurse’s aides, or home health workers who provide assistance with what are called “activities of daily living” such as bathing, eating, and dressing.
Long-term care is not just provided in nursing homes-in fact; the most common type of long-term care is home-based care. Long-term care services may also be provided in a variety of other settings such as assisted living facilities, and adult day care centers.
2. Why is it important to plan for long-term care?
No one expects to need long-term care but it’s important to plan for it nonetheless because (a) the odds of needing long-term care are high (b) the cost of long-term care is rising.

• Approximately 40% of people will need long-term care at some point during their lifetimes after reaching age 65.
• Approximately 14% of people age 71 and older have Alzheimer’s disease, a disorder that often leads to the need for nursing home care.
• Currently, the average annual cost of 1-year nursing home stay is $68,255 and in many states the cost is much higher.

Read more about retirement and long-term care in the Compass, Issue 12, a client service publication of Retirement Advisors of America.