Long-Term Care Calculator: Costs and Funding Gap

Project a long-term care funding gap using your own cost estimate and insurance terms. The model grows today’s monthly care cost until care begins, then continues that assumed inflation during care. A reimbursement cap, waiting period and benefit pool limit what the modeled policy pays.

How to use this tool

1. Enter a local monthly care estimate and years until care begins.
2. Choose a care duration and inflation assumption.
3. Enter the monthly reimbursement cap and benefit pool expected at care start.
4. Enter uncovered waiting months and other funds available at that time.

Formula

Cost in care month m = today’s monthly cost × (1 + inflation)^(years until care + m ÷ 12)

Reimbursement after waiting = min(monthly cost, monthly cap, remaining benefit pool)

Funding gap = max(0, total care cost − reimbursements − other funds)

The first care month is m = 0. The reimbursement cap stays fixed during care; inflation increases only care costs. Payments reduce the pool until it is exhausted. The annual table groups months without changing the monthly calculation. The model assumes qualifying reimbursement expenses, not an indemnity contract paying a fixed cash amount.

Example

At $1,000 monthly, no inflation and 12 months of care, costs total $12,000. A three-month wait, $600 monthly cap and $3,600 pool provide six payments of $600: $3,600 in all. Uncovered cost is $8,400. With $2,000 of other funds, the additional funding gap is $6,400.