The cost of assisted living continues to rise in the United States. According to the Market Survey of Long-Term Care Costs released by MetLife.
Private nursing home rates are up 4.6% to an average of $229 per day. This adds up to $83,000 per year. Assisted living facilities are up 5.2% to an average of $39,000 per year.
Costs for home health aides and adult day services haven’t changed in the past year.
Sandra Timmerman, Ed.D, from the MetLife Mature Market Institute, notes that “The cost of care in nursing homes and assisted living has been and continues to be high, and, in the past year, the increases have even outpaced medical care inflation by about 3%.”
Timmerman suggests that although families provide most of the care for seniors, paid care is part of the equation for most people. As a result, people should be looking into savings plans, annuities and long term care insurance to hedge their bets.
Of course, MetLife is in the business of selling these kinds of financial products. But their research should still stand on its own.
An annuity is a hybrid between a life insurance policy and an investment product. Basically you pay in for a certain amount of time and then the company pays you until you die. Of course, it’s never that simple.
Long term care insurance is designed to cover the costs of home care, assisted living, adult daycare, respite care, hospice care, nursing homes and Alzheimer’s care facilities.