Modern medicine is extending the life expectancy of most Americans. Living to be 100 years of age doesn't even get you a mention by Willard Scott on the "Today Show." However, it also raises the likelihood that more and more people will eventually need some type of expensive, extended living assistance.

George Chamberlin

"There are 35 million people who are over age 65 today and that figure will reach more than 70 million by 2030," said Sandra Timmerman, director of the MetLife Mature Market Institute. "As people get older, they are more likely to develop chronic conditions or physical and cognitive disabilities, which will require ongoing assistance with day-to-day activities."

And paying for that assistance comes with an ever-increasing price tag. According to a study by MetLife, the average nursing home cost in the United States has climbed to $181 a day for a private room. In the San Diego region, the price averages $194.45 a day.

The daily cost for this care is just the tip of the long-term care iceberg. The study determined that the average nursing home stay is 2.4 years. That works out to $66,153 a year or $158,768 for the average stay.

"We know that after the age of 65, Americans have more than a 70 percent chance of needing some form of long-term care," said Jim Emerman, senior vice president of the American Society on Aging. "This is a real wake-up call for all of us to redouble our efforts to get good information on long-term care financing out in the community."

A study by the society found that 71 percent of people believe it is very important to have some type of private or government coverage for long-term care. However, only 17 percent say they currently have specific long-term care insurance to cover these costs.

"This study shows just how many people think they're already covered by some program, when it's very likely they aren't. By the time they realize they're not covered or that coverage is limited, it may be too late to acquire long-term care insurance coverage," Emerman said.

Perhaps the biggest misconception about long-term care is that the government will pick up the tab. Indeed, Medicaid does cover these costs, but only after the person needing the assistance has depleted nearly all of their personal resources. In other words, government assistance kicks in only when a person is destitute.

"Believing the government will pay for your long-term care needs is a big mistake," said Malcolm Cheung, vice president at Prudential Financial (NYSE: PRU). "People don't realize that Medicare does not necessarily pay for custodial care. And, in order for Medicaid to pay for such care, a person must 'spend down' his assets and impoverish himself, and this is not effective financial planning."

That explains why a growing number of financial services companies are actively marketing long-term care insurance policies. As the demand for long-term care services -- either in home, in a residential facility or a nursing home -- increase, there is a limited supply of facilities and trained care professionals. Currently, 6.4 million people over the age of 65 need nursing home care. The U.S. Administration on Aging says one in two people over the age of 85 need living assistance.

"This explains why long-term care insurance is growing in popularity," said Lynn Boyd of the American Council of Life Insurers. "In these uncertain times, middle-income Americans need help managing their long-term care risks. However, while the need for long-term care planning is clear, a vast majority of adult Americans still go without the coverage."

A growing number of companies are beginning to offer long-term care insurance to their employees in the same way that they offer group life and disability insurance. A Prudential survey found that 62 percent of workers said they would consider long-term care insurance as a voluntary benefit if their employer offered it. And, an overwhelming 82 percent would consider buying coverage if their employer picked up a portion of the cost.

"While we all hope that we will never need long-term care services, many of us will find ourselves in that position at some point in our lives," said Timmerman of MetLife. "Since nursing home and homecare costs are already very high and will continue to increase over time, it is important to make sure that we will be able to pay for care when we need it."

Chamberlin's financial analysis column appears each Monday in The Daily Transcript. Chamberlin also reports daily on stocks and local business on NBC 7/39 and on "Money In The Morning" on KOGO 600 AM.