Don’t be caught off guard by the cost of long-term care. Discover the true cost of long-term care in Utah.

Long-Term Care in Utah: What You Need to Know

By Net Worth Advisory Group

Retirement is an amazing time, but it comes with so many variables to consider. One specific area many people overlook is the cost of long-term care. Recent data reveals that most Americans turning 65 this year will need at least some form of long-term care as they age, and long-term care is expensive.

To discover the true cost of long-term care, you’ll need to investigate both what type of care you need and the location you’ll need to receive it in. According to the Genworth Cost of Care Survey, the national median costs of long-term care range from around $1,690 per month for adult day care services to around $9,034 per month for a private room in a nursing home. 

For residents living in the state of Utah, these numbers are a little higher than the national average, meaning you’re going to want to take a hard look at what type of care you want as you begin to plan.

Cost of Long-Term Care in Utah

The following data shows average costs based on facilities all over Utah, but the actual costs of care may vary in your specific location. Additionally, some long-term care needs can be fulfilled by family and friends, so depending on the support group of the person needing care, these costs may not be necessary for all retirees. 

On the other hand, some old-age illnesses such as Alzheimer’s will almost always result in the need for long-term care during the late stages of the disease, despite how supportive or available loved ones are to help. 

No matter what, it’s worth considering the need for long-term care costs as part of your retirement plan. The following table shows the median cost of long-term care services in Utah as of 2023:

As you can see, costs in Utah are slightly higher than costs in other areas of the United States. Nursing home care, whether in a semi-private room or private room, may be well above most people’s monthly mortgage payments. 

So how can you build these expenses into your retirement plan if you had planned on mitigating housing costs in the remaining years of your life?

Options to Pay for Long-Term Care

If thinking about paying for these costs on your own feels overwhelming, you have options. The three most common options include:

  • A stand-alone long-term care insurance policy
  • Addition of a long-term care rider to a life insurance policy
  • Pay for long-term care with your retirement assets and/or home equity.

Stand-alone policies have been decreasing in popularity because the annual premiums can be quite expensive and the policies usually offer no cash benefit to survivors if the benefits aren’t used. However, stand-alone policies may be a good option for those who can afford the premiums and want protection from the risk of long-term care expenses.

Another option might be to add long-term care insurance to existing contracts you own. If you have a permanent life insurance policy, many insurers offer an add-on called a long-term care rider. For an additional premium, the rider may come with death benefits. 

It may be possible to pay for long-term care expenses from your retirement assets. If your retirement assets aren’t sufficient, you also may be able to utilize the equity in your home to cover expenses. You could utilize your home equity by downsizing or considering a reverse mortgage or HELOC.

Partner With an Expert to Make the Right Decision

No one can predict what type of care you might need in the future. Everyone has a different situation and you deserve to have a plan that perfectly fits your unique life.

At Net Worth Advisory Group, we apply our values of transparency and accountability to help you feel confident in your future. You don’t have to feel overwhelmed making all these decisions alone; let us help you create the best future possible. Call us at 801-566-6639 or schedule a complimentary, no-obligation consultation to see if we are a good fit to help you pursue your goals. To learn more, visit our website.

About Net Worth Advisory Group

Founded in 2003, Net Worth Advisory is an independent, fee-only, CERTIFIED FINANCIAL PLANNER™ and investment advisory firm located in Salt Lake City, Utah. We specialize in helping people transition from the workplace into retirement, and ensuring that those who are already retired will not outlive their nest egg. Our top priority is to have clients experience a greater sense of ease with diligent, personalized wealth care and the implementation of customized financial plans and ongoing personalized asset management. We equip all clients with a comprehensive financial plan, meeting every six months to update as needed and review investment performance. Our team is passionate about providing comprehensive financial planning with the fee-only model, and we love feeling like we’re making a difference in our clients’ financial lives.

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