70% of Americans over 65 will need long-term care. Find out what it will actually cost in your state.
Long-term care refers to ongoing assistance with activities of daily living — bathing, dressing, eating, mobility, continence, and transferring — needed when an illness, injury, or cognitive decline makes independent living difficult or impossible. It's distinct from medical care: long-term care is custodial, not curative. In 2026, the national average cost of a private room in a nursing home is approximately $9,500/month, assisted living averages $5,900/month, and professional in-home aides run around $5,200/month for 44 hours of care per week. These are not rare or hypothetical expenses — the U.S. Department of Health estimates that 70% of Americans over age 65 will require some form of long-term care services.
Because Medicare covers almost no custodial long-term care and Medicaid only kicks in after most savings are exhausted, the financial burden typically falls on the individual or their family. Use the calculator below to estimate your specific exposure based on your state, preferred care type, and projected care duration.
Uses 2026 senior care cost benchmarks adjusted by state. Figures include 3% annual inflation projection. · Updated July 2026
Long-term care costs in 2026 average $112,000 per year for a private nursing home room and $64,000 per year for assisted living — expenses that can rapidly deplete retirement savings. About 70% of Americans over 65 will need some form of long-term care, yet fewer than 10% have a dedicated insurance policy. This calculator helps you estimate your potential LTC costs and how much coverage makes sense given your age, health, and assets.
Most Americans plan carefully for retirement income — 401(k) contributions, Social Security timing, Roth conversions — but largely overlook long-term care, often the single largest expense they'll face in retirement. The 2026 A Place for Mom Cost of Long-Term Care Report found that senior living costs have risen 5–8% annually in recent years, driven by healthcare labor shortages and post-pandemic wage increases for care workers. A 55-year-old planning to retire at 65 should know that today's $11,294/month nursing home cost will be approximately $16,500/month by age 80 at 3% annual inflation. A couple where both spouses need care could realistically face $600,000–$900,000 in cumulative costs — without a dedicated plan, that burden falls to personal savings, Medicaid spend-down, or unpaid family members.
Medicare covers skilled nursing care for up to 100 days after a qualifying 3-day hospital stay — with a co-pay of $204/day after day 20 in 2026. After day 100, Medicare coverage stops entirely. Custodial care — the everyday help with bathing, dressing, eating, and mobility that most people with dementia or chronic conditions actually need — is not covered by Medicare at any level. Medicaid does cover long-term care, but only after most assets are spent down to state-defined limits (typically under $2,000 in countable assets for single individuals). The five-year Medicaid look-back period means gifts or asset transfers within five years of applying can delay eligibility — making early planning essential.
Standalone long-term care insurance has become increasingly difficult to find as major insurers have exited the market following decades of underpriced premiums. Annual renewal increases of 20–40% on existing policies have shaken consumer confidence further. Hybrid life/LTC policies now dominate new LTC sales — combining life insurance with a long-term care rider so that if you need care the benefit pays, and if you die without needing care your heirs receive the death benefit. A typical hybrid policy purchased at age 55 in 2026 might require a lump-sum premium of $70,000–$150,000 or a 10-pay premium of $7,000–$15,000/year, providing $300,000–$600,000 in lifetime LTC benefits. Washington state's LTC Trust Act — the nation's first public long-term care benefit — and similar proposals in other states signal growing legislative urgency around this funding gap.
Monthly cost benchmarks based on Genworth 2026 Cost of Care Survey. Costs vary significantly by city; these represent state median figures.
| State | In-Home Aide 44 hrs/wk |
Assisted Living private room |
Memory Care facility |
Nursing Home private room |
|---|---|---|---|---|
| Alaska | $14,600 | $9,800 | $12,400 | $28,400 |
| Massachusetts | $8,800 | $7,400 | $9,200 | $14,300 |
| Connecticut | $8,100 | $6,900 | $8,700 | $13,200 |
| New York | $7,700 | $6,400 | $8,200 | $12,800 |
| California | $7,100 | $6,000 | $7,600 | $11,200 |
| National Average | $5,200 | $5,900 | $7,800 | $9,500 |
| Florida | $4,800 | $4,300 | $5,600 | $8,400 |
| Ohio | $4,600 | $4,100 | $5,200 | $8,100 |
| Texas | $4,400 | $3,900 | $5,000 | $7,700 |
| Missouri | $4,000 | $3,600 | $4,600 | $7,000 |
| Mississippi | $3,700 | $3,200 | $4,200 | $6,500 |
Source: Genworth Cost of Care Survey 2026. Memory care costs are typically $1,000–$2,500/month higher than standard assisted living. All figures are monthly. Nursing home rates shown for private room; semi-private runs 15–20% less.
There is no single right answer — the best strategy depends on your assets, health, family situation, and risk tolerance. Here's how the main options compare.
| Funding Option | Best For | Key Advantages | Key Risks / Limits |
|---|---|---|---|
| Self-Insurance (savings) | Assets $1M+ | No premiums; full control of assets | Catastrophic care need can deplete estate; inflation risk |
| Traditional LTCi | Age 50–60, good health | Lower initial premiums; flexible benefit options | Premiums not guaranteed; major carriers exited market |
| Hybrid Life/LTC Policy | Ages 50–65; wants certainty | Guaranteed level premiums; death benefit if unused | Higher upfront cost; opportunity cost of lump sum |
| Annuity with LTC Rider | Ages 60+; lump sum available | Doubles or triples LTC benefit from annuity principal | Less liquidity; complex product structure |
| Medicaid | Assets under state limit | Full coverage after spend-down; no ongoing premiums | Must spend most assets first; limited facility choices |
| Family Caregiving | Mild need; supportive family | No direct cost; familiar environment | Average $324,000 in caregiver earnings loss; burnout risk |
Most financial planners recommend a hybrid approach: some self-insurance through retirement savings, supplemented by a hybrid life/LTC policy to cap catastrophic exposure. The right combination depends on your specific asset level, health history, and family situation.
Long-term care planning is one of the most emotionally and financially complex decisions in retirement preparation, and it is genuinely not well-suited to a DIY approach. The product landscape has changed dramatically in the past decade: most major traditional LTC insurers have exited the standalone market, hybrid life/LTC products have become the dominant new option, and pricing has become significantly more complex. A specialist in LTC and retirement income planning — ideally a fee-only Certified Financial Planner (CFP) or an independent agent who works specifically in long-term care — can help you model the options objectively, including self-insuring, hybrid policies, annuity-based LTC riders, and Medicaid planning strategies.
The best time to start this conversation is in your early-to-mid 50s — old enough to take it seriously, young enough that your options are still broad and premiums manageable. By age 65, approval rates drop, premiums increase substantially, and some products become unavailable entirely. If you or your spouse have a family history of dementia, Alzheimer's, or Parkinson's disease, starting this conversation in your late 40s is not premature. Many families also find it helpful to involve an elder law attorney alongside an insurance specialist, particularly when Medicaid planning, trusts, or estate protection strategies are part of the picture. A coordinated plan developed 10–15 years before anticipated care needs gives you the most options and the most affordable path forward.
Written by the FreeInsuranceIQ Editorial Team · Last updated: July 2026
Long-term care cost estimates sourced from Genworth Cost of Care Survey — the industry's most comprehensive annual study of LTC costs by care type and geography.