It covers only short-term skilled nursing facility care following a qualifying inpatient hospital stay of at least three days, and only for up to 100 days under specific conditions. Assisted living, which provides help with daily activities such as bathing, dressing, and medication management in a residential setting, is considered custodial care and is explicitly excluded from Medicare coverage. The national median monthly cost of assisted living reached $6,200 per month as of the CareScout 2025 Cost of Care Survey, or approximately $74,400 annually, a 5% increase from the prior year. For those who need memory care due to dementia or Alzheimer’s disease, costs run significantly higher, typically $6,500 to $8,000 per month nationally in 2026. The primary ways to fund assisted living include personal savings and retirement assets, long-term care insurance, veterans benefits for eligible individuals and their spouses, Medicaid for those who have spent down their assets to qualifying levels, and home equity through a reverse mortgage or home sale. Long-term care insurance purchased in advance is the most reliable tool for protecting retirement savings from these costs, which is why planning for long-term care well before it is needed is one of the most important aspects of a comprehensive retirement plan.

Long-term care insurance covers extended care services that Medicare and regular health insurance do not pay for, including help with daily activities at home or in a facility.

Do I Need Long-Term Care Insurance and What Is the Best Age to Buy It?

Whether you need long-term care insurance depends on your assets, family history, and how you plan to fund extended care—and the best time to buy is usually between ages 55 and 65.

Medicare Part A: What Does It Cover, When Does It Start, and What Is the Eligibility Age?

Medicare Part A covers inpatient hospital care and related services for most Americans starting at age 65, with enrollment deadlines that carry permanent penalties if missed.

COBRA Insurance: How It Works and What It Costs

COBRA lets you continue employer health coverage after leaving a job, but you pay the full premium plus an administrative fee—often much more than you paid as an employee.

Retirement Health Insurance Options: What Are Your Choices?

Retiring before Medicare at 65 means choosing among COBRA, the ACA Marketplace, a spouse's employer plan, or other options—each with different costs and coverage rules.

Medicare vs. Private Insurance: What Is the Difference?

Medicare is federal coverage for Americans 65 and older; private insurance differs in structure, premiums, out-of-pocket limits, and what is excluded from coverage.

Life Insurance in Retirement: Do You Still Need It?

Life insurance in retirement depends on whether anyone still relies on your income, whether debts remain, and whether estate planning goals require a death benefit.

When Should You Buy Life Insurance?

The best time to buy life insurance is when you are young and healthy—premiums rise with age and health events can make coverage unavailable.

Can Life Insurance Be Used as Collateral?

Life insurance can secure a loan through a collateral assignment, allowing lenders to recover the outstanding balance from the death benefit if needed.

Does Medicare Cover Assisted Living and How Do You Pay for It?

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