Long-Term Care Funding Gap Method, Formula & Examples
On this page
This method guide explains the calculation sequence behind the Long-Term Care Funding Gap Calculator. It owns formulas, input definitions, timing, rounding and reference checks; the calculator remains the only page that performs the numeric scenario.
Calculation sequence
Current care cost grows to the entered start year. Total care cost spans the selected months; policy benefits begin after the elimination period and are capped by monthly, duration and pool limits.
Inputs and evidence
Use current written documents for every material input. The calculator supports: Market and currency, Current monthly care cost, Annual care-cost inflation, Years until care starts, Care duration, Policy elimination period, Monthly policy benefit, Policy benefit duration, Remaining policy benefit pool, Assets designated for care, Annual asset growth.
Reference example
Two years of 5,000 monthly care costs 120,000. A 3,000 monthly benefit for 24 months pays 72,000; adding 20,000 assets leaves a 28,000 gap.
Boundary and error checks
Test zero-rate branches where available, minimum and maximum supported inputs, and a scenario in which the main result reverses. Reject blank, non-finite or out-of-range values rather than silently substituting them.
Model boundary
No health, longevity, eligibility, premium, Medicaid/means test, tax, informal care or insurer claim decision is predicted.
Sources and review status
- NAIC — Long-Term Care Insurance
- Medicare — Long-term care
- Administration for Community Living — Long-term care
Sources and model boundaries checked 2026-10-08. This new opportunity-map expansion has automated formula, fixture and source QA but has not been represented as human editorial review. Keep the route noindex until CalculatorGeek records a completed YMYL editorial review.