Long term care is needed by those who can't perform the basic tasks required to take care of themselves. This can include people suffering from a debilitating illness or chronic injury. The need for long term care can arise unexpectedly, often creating a large financial burden. This calculator can help you determine if you are financially prepared for this impending expense.

The results and explanations generated by this calculator may vary due to user input and assumptions. New York Life Insurance Company does not guarantee the accuracy of the calculations, results, explanations, nor applicability to your specific situation. We recommend that you use this calculator as a guideline only and you should ultimately seek the guidance of an experienced professional.

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Definitions

Estimated daily cost
The "estimated daily cost" is the current estimated, annual, average cost of nursing home care in the US. Keep in mind that these costs can vary widely by region and can be considerably higher in larger metropolitan regions. The current, annual estimated cost of nursing home care in the US is $56,000.¹ The calculations provided here are based on nursing home care. Assisted living facility costs average $22,476 per year², and home care costs range from $12,000-$16,000 per year³. Years of care
The number of years you expect to require long term care. The average stay in a nursing home is about 2.5 years, but can vary considerably.

Inflation rate
What you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has a long-term average of 3.1% annually, from 1925 through 2004. We will increase the cost of your long term care by this rate each year.

Funds currently available
The total amount that you have saved or invested that would be available to pay for long term care expenses.

¹National Association of Insurance Commissioners. A Shopper's Guide to Long-Term Care Insurance. 2003. Page 4.
²Ibid
³Ibid

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

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