In 2018 the average cost of a nursing home stay was over $97,000 a year. In some urban areas, the annual costs exceed $100,000. For example, the annual cost of a private room in a nursing home in Alaska is $288,000. With such staggering costs, approximately 75% of the elderly cannot afford to finance even one year in a nursing home. Even worse, the average cost of an annual nursing home stay is projected to approximately $200,000 by 2030.

It follows then, long term care insurance should be factored into your financial plan.