Part of our guide: Long-Term Care Insurance: Costs, Options and Planning →
Long-term care has gotten steadily more expensive, and the latest figures make the planning case on their own. Clients who assume they can self-fund often haven’t seen the actual numbers.
Key takeaways
- In 2025, the national median was $35 an hour for in-home care, $6,200 a month for assisted living, and $10,798 a month for a private nursing home room.
- Three years in a private nursing room at today’s median costs close to $390,000; at 3% inflation, that could exceed $800,000 in 25 years.
- Most claims are for home care or assisted living, but every setting has become more costly.
Three years in a private nursing home room at today’s national median: about $389,000. In 25 years at 3% inflation: more than $800,000.
What care costs today
According to the CareScout 2025 Cost of Care Survey (national medians):
- In-home care (non-medical caregiver): $35 per hour, or about $80,000 a year at 44 hours a week
- Assisted living: $6,200 per month ($74,400 a year)
- Nursing home, private room: $10,798 per month
Costs vary widely by state and metro area, so run local figures for each client. Cost growth slowed in 2025 after several years of steep increases, but most settings still rose 1–5% year over year.
What that means over a claim
At today’s median, three years in a private nursing home room costs roughly $389,000. If costs grow 3% a year, the same three-year stay 25 years from now would cost more than $800,000. That’s the scale of risk a client in their 50s is carrying without coverage.
Where most claims are paid
Most long-term care claims are paid for home care or assisted living rather than nursing homes, and most people prefer to stay home. That’s why policy design should reflect the care setting the client actually wants. See why LTC insurance isn’t just for nursing homes.
Building the plan
Rising costs make inflation protection and benefit sizing critical. If the premium is a concern, there are five ways to make coverage more affordable. Our LTC team can help you design a plan around your client’s budget and location.
Frequently asked questions
How much does long-term care cost in 2025?
National medians from the CareScout 2025 survey: $35 an hour for in-home care, $6,200 a month for assisted living, and $10,798 a month for a private nursing home room.
How much could long-term care cost in the future?
At 3% annual inflation, a three-year private nursing home stay that costs about $389,000 today would cost more than $800,000 in 25 years.
Is home care cheaper than a nursing home?
Usually, depending on hours needed. Full-time in-home care can approach or exceed facility costs.
Reviewed by Tim Fuller on 2026-09-25
Tim Fuller
President, SRS Inc.
Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.
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