Note that these two services are different than nursing home care, where patients generally require full-time supervision, plus room and board. The monthly national median cost of a private room at a nursing home is $7,698, according to Genworth.
Women tend to spend more time at a long-term care facility, according to data from the American Association for Long-Term Care Insurance. Women spend an average of 2.6 years in a nursing home, versus 2.3 years for men.
When solving the problem of paying for care, advisors point to three tiers of individuals and their finances.
"With $300,000 and less in assets, spend that money down and go to a state-covered program because you may not have the ability to buy coverage," said Darin Shebesta, vice president at Jackson/Roskelley Wealth Advisors in Scottsdale, Arizona.
Medicaid, a state and federal health care program, can help pay for nursing home care, provided you have low income and generally less than $2,000 in assets.
"If you have $2 million and up in assets, there's an argument for self-insuring," Shebesta said. "You're still a millionaire if you incur $250,000 in long-term care costs."
As an alternative to using your assets to self-insure, consider a deferred income annuity to cover the cost of care in an advanced age. And, while you can't deposit more money into your Health Savings Account (if you have one) after you're on Medicare, you can still use any balances in the account for long-term care and other qualified medical expenses.
Retirees who straddle that $300,000 to $2 million asset range are the ones who'll lose a sizable chunk of money paying for care, and thus they're the ones who may benefit most from a long-term care policy.