Long-term care risk is the risk of losing the ability to live independently.

As people grow older, they are more likely to need help performing everyday tasks, such as eating, bathing, dressing, and getting around the house. On occasion, people can lose the ability to live independently. This loss—which can be sudden or gradual—can have profound financial and emotional implications for you and your family. If you become physically or mentally disabled, you may need long-term, 24-hour care provided by a family member or professional caregiver. In some cases, nursing home care is necessary. If you need long-term care, the government will pay for it only if you meet certain financial requirements.

Often, we think of long-term care risk as the need for a nursing home. But according to the US Senate's Special Committee on Aging, about 80% of those needing long-term care live either at home or in some other community setting. Most recipients of long-term care receive care in their own homes by unpaid family members, usually women. Long-term care risk will increase as our population ages and requires more medical care. The effects will be felt not only on personal finances and quality of life, but on the government level, as states, cities, and Washington begin to deal with the care requirements of millions of retiring Baby Boomers.