Varieties of Extended Care

Did you know that by 2040, 20 percent of Americans will be 65 or older? According to the Urban Institute, the population of people 85 and older is set to quadruple between 2000 and 2040, reaching 15 million. This underlines the importance of considering an extended care directive.1

Let’s take a look at the varieties of extended care. Bear in mind that this is just an overview. We can talk about these together, and I’d also be happy to help you find professionals who can help address your more nuanced questions.

Independent Living or Retirement Communities: This could be considered your “entry-level” to extended care. In many ways, these communities resemble apartment or condo living. However, they come with additional benefits like transportation services, social events, and staff to maintain common areas, lawns, and gardens. While this is a flexible option offering recreation and connection, these communities may not provide on-site medical services.

Assisted Living: These communities go to the next level, combining the social aspects of independent living with a higher level of care. Some assisted living communities may offer opportunities to advance to greater levels of care on an as-needed basis.

• Did you know the estimated annual cost of a room in an assisted living facility is $72,924?2

Continuing Care Retirement Communities (CCRCs): This variety of extended care may allow an aging adult to start in an assisted living community and transition to greater levels of care. One benefit is that CCRCs are designed to be homes that the individual will be able to occupy, even as their care needs change. This continuity can help ease the stress of having to move.

Adult Family Homes: Also known as residential care homes, these are small, privately-owned spaces run by licensed caregivers that house a small number of tenants. The advantage here lies in having on-site caregiver support to help with basic life activities, like meals, dressing, and bathroom tasks. However, these homes do not necessarily provide specialized medical care, though some staff members may have medical training.

• Did you know a major insurance advocacy organization estimates that fewer than 3 percent of Americans have extended care insurance?3

Medical Foster Care: The Department of Veterans Affairs oversees the Medical Foster Homes Program. These are similar to adult family homes but allow veterans to pay through extended care insurance, VA Aid and Attendance benefits, other VA benefit programs, or out of pocket.

Nursing Homes: Nursing homes offer a higher level of daily assistance with personal and medical care, hands-on activities, and meals. Residents have access to medical professionals, therapists, and regular doctor visits, which are often covered through health insurance. However, such coverage is typically limited to a set number of days.  

• Did you know that the estimated annual cost of a nursing home in 2025 is $131,583?2

Skilled Nursing Facilities (SNFs): Many people use SNFs and nursing homes interchangeably, but some key differences exist. For example, skilled nursing facilities may always have doctors or nurses on-site offering short-term rehabilitation and other hands-on services.

• Did you know that the Administration for Community Living estimates that Americans who reach age 65 have a 70 percent likelihood of needing extended care at some point in their lives? Of Americans in that age group, 20 percent may need care for five or more years.3

Memory Care: Memory care units may be contained within SNFs or assisted living facilities, and focus specifically on those with advanced dementia, Alzheimer’s disease, and other severe memory issues. These units offer protective safeguards and gentle enrichment for these vulnerable residents, with dedicated staff and medical professionals looking out for them.

So, what can you expect to spend on extended care? It depends on your situation, but here are some average median prices as of 2025. Bear in mind that costs vary by city and state.

Extended care covers a wide variety of services and needs, and while you may not expect to rely on these services, they very well could be part of your future. It’s tempting to leave such things to fate, but creating an intentional strategy can help you be in control of your life for years to come, rather than leaving your future in the hands of others.  It is always my goal to help you feel prepared and confident about your choices. If I can be of help, reach out soon so we can create an extended care strategy that will work for you.

1. Urban Institute, July 8, 2025.

2. Genworth,  July 8, 2025.

3. American Association for Long-Term Care Insurance, February 18, 2020.

This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.