Understand Different Types of Healthcare Costs to Plan Confidently

A recent survey found that many retirees are increasingly focused on how health may affect their later years. About 75% reported some concern about declining health as they age. Within that group, 41% said the potential need for long‑term care is an important consideration in retirement, 36% noted concerns about maintaining independence, and 32% mentioned cognitive changes, including dementia. ¹

Understanding the potential costs associated with different types of healthcare can help families plan more confidently. A March 2026 report outlines national median costs for long‑term care services in the United States: ²

• Non‑Medical Caregiver: $80,080 annually (44 hours per week)
• Skilled Nursing in the Home: $90 per hour, with a median per‑visit cost of $160
• Assisted Living Communities: $74,400 annually
• Nursing Home Care: $315 per day ($114,975 annually) for a semi‑private room; $355 per day ($129,575 annually) for a private room

Although planning for healthcare expenses is often simpler when you strategize earlier in retirement, conversations can be valuable at any stage. A financial professional can help explore options that may align with different goals, timelines, and comfort levels, including:

• Long‑Term Care (LTC) Insurance: Coverage may include nursing home care, assisted living, or home health services through traditional (stand-alone) or hybrid policies. Some hybrid policies combine life insurance with long-term care benefits, sometimes referred to as “living benefits,” allowing for a potential death benefit if care is never needed. Premiums vary based on factors such as age and health. (LTC insurance is not part of Medicare, and Medicare does not cover long‑term care costs.) LTC insurance is also frequently "tax-qualified", making benefits non-taxable and premiums tax-deductible as medical expenses. Tax-qualified LTC insurance is subject to federal requirements, and will only pay out benefits if the beneficiary needs help with basic activities like eating and dressing, and if the plan is prescribed by a medical professional.³ 
• Life Insurance Riders: Certain permanent life insurance policies may offer riders for chronic or terminal illness.
• Health Savings Accounts (HSAs): For those who are eligible, these tax‑advantaged accounts can be used to pay for qualified medical expenses and eligible LTC insurance premiums.
• Annuities with LTC Benefits: Certain specialized annuities may offer enhanced income or benefits to help cover long-term care costs.
• Self‑Funding: Personal savings, investments, or other income sources may be used to cover care expenses.

To learn more about how preparing for healthcare costs may fit into your broader retirement strategy, call my office to schedule time to talk.

^{1“Retirees Are Enjoying Life Amid Health and Financial Uncertainties.” 18 DEC 2025, Transamericainstitute.org, https://www.transamericainstitute.org/research/publications/details/retirees-enjoying-life-amid-health-and-financial-uncertainties.}

^{2“CareScout Releases 2025 Cost of Care Survey Results.” 02 MAR 2026, Genworth.com,  https://investor.genworth.com/news-events/press-releases/detail/1054/carescout-releases-2025-cost-of-care-survey-results}

^{3"What Makes a Long-term Care Policy Tax-qualified?" 16 JAN 2024, CBS News, https://www.cbsnews.com/news/what-makes-a-long-term-care-policy-tax-qualified/}