Those who have dealt with the LTC needs of others know that LTC can be very expensive.  In 2016, the national average cost of Nursing Home care is $92,000/yr; the  average base cost of Assisted Living is $43,500/yr  and the average cost of home care is about $20/hr. You can find Cost of Care in your state under the Calculator tab of this website.

Additional financial expense may occur when qualified funds (IRAs, 401k, etc.) withdrawal results in taxable income.  Another issue can occur if funds require the liquidation of investments at a time when the markets are at a low point. The use of LTC insurance reduces/eliminates this potential expense and the added stress deciding which source of funds to use for paying for LTC.  Decisions regarding the funding of LTC become even more problematic when you are at a point when your children are making these decisions for you.  See Family Risk for more information.