Long Term Care Insurance

These are the facts as we understand them, regarding Long-Term Care needs in America:

  • 27.3% of all Americans will reside at some point in their lives in a nursing home
  • 70% of all Americans after age 65 will need some type of long-term care
  • 10% of all Americans younger than 65 will require some care in a nursing home, in fact
  • 40% of current patients receiving long-term care are under age 65 from accidents or debilitating illness
  • The median length of stay in a nursing home before death is 5 months
  • The average length of stay is longer at 14 months due to a small number of people with longer stays
  • 53% die within 6 months of nursing home admission, 65% die within 1 year
  • The current cost for Nursing Home Care is $200/day in Arizona, or $6,000 a month
  • About 60% of nursing home residents rely on Medicaid to pay their long-term care costs.

Many people don’t get to Nursing Homes, but many still need Home Care, Assisted Living, Adult Day Care, Alzheimer’s facilities, Respite Care, or Hospice Care.  Anyone is a candidate who loses one or more of the basic activities of daily living (ADLs) such as dressing, bathing, eating , toileting, continence, transferring (getting in and out of bed or chair), and walking.    A recent study found:

  1. People are receptive to their financial advisors initiating discussions about long-term care
  2. People know that insurance is the best bay to address the long-term care issue
  3. People are not comfortable addressing the financial risk of long-term care without the intervention of financial advisor, and their planning reveals this
  4. The main reason people purchase long-term care insurance was the desire to avoid being a “burden” on their family

So based on our known facts, and the behavioral study of how people approach long-term care insurance, if we don’t initiate the conversation then who will?

The question of Long-Term Care Insurance is all about your risk tolerance, genes, life expectancy, and wealth.

Source: Health and Retirement Study (HRS), Crump Insurance, John Hancock Insurance

For educational and information purposes only.  For use with non-registered products only.  The insurance products described are issued by various companies and not available in all states.   Policy terms, conditions and limitations will apply.  Not all applicants will qualify for coverage.