As the nation continues to recover from one of the most challenging periods in its history, families have begun to rebuild their nest eggs. With plans for a secure financial future more important than ever, families have a unique opportunity, and obligation, to address one of the most basic and potentially impactful risks of all – preparing for the possibility that they will need long term care.

Research shows that about 70% of people age 65 or older will need long term care services at some point in their lifetime. Long term care is the type of care you may need if you have a prolonged physical illness, disability or severe cognitive impairment (such as Alzheimer’s disease) that keeps you from living independently. These limitations may prevent you from carrying out basic self-care tasks, such as bathing, dressing or eating, called Activities of Daily Living (ADLs).

But, just how much does long term care cost, and how do people pay for it? Let’s take a look:

•    Homemaker Services (Licensed) - Average Hourly Rates: $19; annual: $43,472; five year annual growth: 3%

•    Home Health Aide Services (Licensed) - Average Hourly Rates: $20; annual: $45,760 five year annual growth: 3%

•    Adult Day Health Care - Average Daily Rates: $76; annual: $19,825 five year annual growth: N/A

•    Nursing Home (Semi-Private Room) - Average Daily Rates: $244; annual: $89,060 five year annual growth: 4%

•    Nursing Home (Private Room) - Average Daily Rates: $263; annual: $95,995 five year annual growth: 5%

•    Assisted Living Facility (One Bedroom – Single Occupancy) - Average Monthly Rates: $3,200; annual: $38,400 five year annual growth: 6%

As far as paying for long-term care, various payment resources may be available:

•    Private Pay - uses private income, assets and investments.

•    Long-Term Care Insurance - pays for care at home, in assisted living facilities, at adult daycares, and in nursing homes. To qualify, the person receiving care must meet specific  health requirements and be able to afford the cost of care.

•    Reverse Mortgage - uses equity in the home to pay for long-term care insurance or to directly pay for in-home care. (A reverse mortgage is also called a Home Equity Conversion Mortgage or HECM)

•    Government Assistance - Apply for Medicare and Medicaid benefits.

•    Veteran’s Assistance - Veterans and/or their spouses may qualify to receive financial aid to help with care costs.

As you and your loved ones age, make sure you know your options for long term care, and prepare a plan for the cost and how you will be able to pay for it when the time comes.