Personal Resources

Many people use personal resources to pay for the long-term care needs. These resources may include savings and investments, home equity, and/or long-term care insurance. In addition, unpaid family caregivers provide the majority of long-term care services in the U.S.

Questions to ask yourself include:

1. Do you have family members that can help you?

If yes, what will the cost be to them in terms of time and energy as well loss of income if they need to reduce their work hours. Many caregivers spend over 20 hours a week helping older family members, and caregiving responsibilities may continue for several years.

2. Do you have sufficient financial assets to self-insure your risk?

Keep in mind that to self-insure for two (for example, husband and wife) you may need substantial assets, and there may be a risk to the surviving spouse’s standard of living. For example, two years of home care (for 40 hours a week) may cost $85,000. Or, one year in a nursing home may cost $68,000 or more.

3. Do you have resources, such as your home, that could be used to help finance later-life financial needs?

For many, their home equity is a significant asset that can be used to pay for later life expenses.