Women's Longevity: Navigating Long-Term Care Needs for a Longer Lifespan

Women, on average, outlive men. This extended lifespan, while a blessing, presents unique financial challenges, particularly concerning long-term care needs. Experts emphasize the importance of proactive planning to ensure financial security during later life stages, especially as women are more likely to need care for longer durations and may face these needs without a partner to share the burden.

A 2022 report from the Health and Human Services Department indicates that about 57% of Americans aged 65 and older will experience a disability requiring long-term care. For women, the need is more pronounced, with 26% requiring care for more than five years, averaging 3.6 years, versus 17.5% of men needing care for an average of 2.5 years. Certified financial planner Laura Mattia highlights that women are not only more likely to need care but also to need it at a later stage, often after their spouse's care needs have depleted shared assets.

Understanding Long-Term Care

Long-term care encompasses assistance with essential daily activities, provided in settings like nursing homes, assisted living facilities, or at home. While Medicare generally does not cover these costs, individuals may rely on unpaid caregivers, Medicaid (if eligible), or self-insure through accumulated assets. The choice of strategy is highly personal, depending on individual financial resources and income.

The High Cost of Care

The expenses associated with long-term care can be significant. In 2025, Genworth Financial projects the national median hourly rate for non-medical caregivers at $35, and for private-duty nurses, $90 per hour. For institutional care, a semi-private room in a nursing home is estimated at $114,975 annually, while a private room could reach $129,575 annually. Assisted living facilities are projected to cost around $74,400 per year.

Insurance and Planning Strategies

Long-term care insurance policies, either standalone or hybrid (combining life insurance or annuities with long-term care benefits), are available. Certified financial planner Jeff Judge advises that insurance need not cover every dollar of potential cost but should bridge the gap between guaranteed income sources like pensions, Social Security, and annuities, and the projected care expenses.

Cost Differences for Women

Data from Milliman indicates that as of 2024, approximately 5.8 million individuals have private long-term care insurance. Premiums for these policies can be substantial, and women generally pay more than men. For instance, a healthy 55-year-old woman might pay an average of $3,750 annually for $165,000 in coverage with 3% inflation protection, compared to $2,200 for a man of the same age. For 65-year-olds, these costs rise to an average of $5,290 for women and $3,280 for men.

Premiums for long-term care insurance are subject to increases, sometimes steep ones. Financial advisors recommend exploring options thoroughly and understanding the history of premium adjustments. It is also crucial to secure coverage before health issues arise, as insurers may deny applications from those with pre-existing conditions. Hybrid policies have gained popularity, offering a death benefit if long-term care is not utilized, providing a guaranteed return on investment.

Shared Policies and Spousal Considerations

Shared long-term care policies can offer a cost-effective solution for couples. These policies may feature individual benefits for each spouse or a shared pool of funds accessible by either partner. While a shared pool can provide a minimum level of protection at a reasonable price, couples must consider the possibility of one spouse exhausting the benefits first. Nevertheless, having some coverage is generally preferable to none, provided the trade-offs for lower premiums are understood.

"Explore the options and understand what the history of premium increases have been and what they might be going forward."

Patti Black, Financial advisor with Savant Wealth Management

The most critical advice is to begin exploring long-term care options well in advance of need. Proactive conversations and thorough investigation of available strategies can significantly ease the financial and emotional burden on families in the future.

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