A chronic illness that requires long-term care is perhaps the biggest event many retirees worry about facing—and paying for. For many people, this concern is a key motivator in building as large a retirement nest egg as possible, given that a year’s stay in a private nursing home room currently costs around $91,000, on average. Other people, however, choose to purchase long-term care insurance to hedge against the possibility that an extended illness could wipe out their retirement nest egg. Unfortunately, some people underestimate the costs involved and mistakenly believe that Medicare and Medicaid will pay for such expenses.
Quoted from text book ” Senior needs planning”.