What are my long-term care insurance needs?

There are basically three ways to fund your long-term care needs: self-insure, qualify for Medicaid, or obtain long-term care insurance. Use this calculator to determine your potential long-term care needs and how long your current assets might last.

Age, Savings and Assumptions

Your current age

Age estimated to begin long-term care

Annual cost of long-term care in today's dollars

Number of years estimated to need long term care

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Annual long-term care inflation ?

How fast you expect long-term care costs to rise each year, typically higher than general inflation.

10 Year Historic Inflation Rate. 10-year U.S. inflation average 2.9% 2015 0.1%, 2016 1.3%, 2017 2.1%, 2018 2.4%, 2019 1.8%, 2020 1.2%, 2021 4.7%, 2022 8.0%, 2023 4.1%, 2024 2.9% Source U.S. Department of Labor

Value of funds already set aside by you for long term care ?

Savings or insurance reserves you have already earmarked for this purpose.

Recommended Savings Assumptions

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Before-tax return ?

The expected annual return on savings set aside for long-term care, before taxes.

Table of Historic Rates of Return. Inflation 2.9%, U.S. Treasury Bills 3.3%, Long-term Government Bonds 5.0%, U.S. Large-Company Stocks 10.4%, and U.S. Small-Company Stocks 11.8%. Past performance is no guarantee of future results. Source: Ibbotson SBBI 1926-2024

Marginal tax bracket ?

Used to convert the before-tax return into an after-tax return on savings.

Table of Federal Income Brackets and Rates. Tax Rate For Single Filers For Married Individuals Filing Joint Returns For Heads of Households 10% $0 to $11,925 $0 to $23,850 $0 to $17,000 12% $11,925 to $48,475 $23,850 to $96,950 $17,000 to $64,850 22% $48,475 to $103,350 $96,950 to $206,700 $64,850 to $103,350 24% $103,350 to $197,300 $206,700 to $394,600 $103,350 to $197,300 32% $197,300 to $250,525 $394,600 to $501,050 $197,300 to $250,500 35% $250,525 to $626,350 $501,050 to $751,600 $250,500 to $626,350 37% $626,350 or more $751,600 or more $626,350 or more.

Annual increases ?

Any planned yearly increase to the amount you save toward long-term care.

Enter your values and select Calculate.

The figures above translate today's cost of care into what it's likely to cost when you actually need it, and then work backward to what that means for your savings. The total cost of care is a projection built on the age care begins, how many years it lasts, and how fast costs rise until then — it is not a bill you'll definitely receive, but a planning estimate.

Two inputs move these numbers the most: the age you expect long-term care to begin and the annual long-term care inflation rate. Pushing the start age out a few years, or assuming a lower inflation rate, can noticeably shrink both the total cost and the savings figures. The assets you've already set aside also directly reduce what you still need to save.

This model doesn't account for taxes on withdrawals, insurance you may already carry, Medicaid or Medicare rules, or the possibility that care costs less — or more — than assumed. Market returns are also not guaranteed at the rate you enter, and actual care needs vary widely by health and family circumstances.

Treat the lump sum and annual savings figures as a starting point for a conversation, not a target to hit exactly. It's worth revisiting this calculation whenever your before-tax return assumptions change, after a significant raise, or every few years as you get closer to the age you expect care to begin. Having even a rough number now puts you ahead of most people who haven't looked at this at all.

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.