Posted on January 30, 2026

Seniors turning 65 today have a 70 percent chance of needing extended care as they age. However, extended care comes with a hefty price tag.

Nationally, the median annual cost of a nursing home is over $110,000 for a shared room, and the median annual cost of an assisted living facility is around $70,000. In-home care isn't a bargain either. The median annual cost of a full-time home health aide is more than $75,000. Unfortunately, most private health plans don't cover long-term care, which may require you to pay out of pocket.

That's why it might be worth considering extended care insurance. Policies can cover a wide range of services and expenses, including in-home care, rehabilitation, and end-of-life hospice care. Generally, the policies are structured so that you become eligible for benefits once you can no longer perform a set number of activities of daily living, such as bathing, dressing, eating, getting in and out of beds and chairs, and other areas that may lead you to require personal care.

Several factors influence the cost and availability of extended care insurance, including age, health status, and the level of coverage. Extended care policies also have expenses and limitations. You should consider determining your insurability before implementing a long-term care insurance strategy. Any guarantees associated with a policy are dependent on the issuing insurance company’s ability to continue making claim payments.

As your financial professionals, we can help you weigh the pros and cons of extended care insurance to make the best decision for your unique situation. If you’d like to learn more, please contact our office. We can send you some material and schedule an appointment.

1. LongTermCare.gov, 2026

2. Genworth Cost of Care Survey, 2026

3. NIH.gov, 2026

4. DHCS.gov, 2026"