Long Term Care Insurance

Will you need Long Term Care?

No one wants to think about what would happen if they were unable to take care of themselves, but the odds that you will need long term care may be greater than you imagined.

  • 69% of Americans will need long-term care after age 65. **
  • As of 2009 the annual cost for a nursing home stay was $80,300. **
  • The possibility of someday needing long-term care is a risk that everyone should plan for.
  • At some point, you may no longer be able to care of yourself.
  • At least 6.4 million people age 65 or older currently need long-term care, with 50% of those over age 85 requiring care.*

The effects of long-term care can be felt financially and emotionally by both you and your family:

  • 42% of people receiving long-term care services in this country are working age adults between the ages of 18-64.***
  • The average length of stay in a nursing facility is 2.5 years.**** In-home care expenses can sometimes exceed the cost of a nursing facility—depending on the amount and level of care you need.

“Planning for Long-Term Care“ United Seniors Health Council, Washington, D.C., McGraw-Hill, NY. 2002: page 4. 
** –”American Association for Long-Term care insurance Almanac and book of facts 2011. 
***-“Long-Term Care: Medicaid’s Role and Challenges“ Kaiser Commission on Medicaid and the Uninsured policy brief, November 1999: Page 3.

****- Centers for Disease Control and Prevention/National Center for Health Statistics, The National Nursing Home Survey: 1999.

***** – Estimates from: Centers for Medicare & Medicaid Services (CMS) formerly known as Health Care Financing Administration (HCFA), Office of the Actuary, National Health Statistics Group. As presented in, 
“Nursing Homes.“ American Association of Retired Persons (AARP) Public Policy Institute Fact Sheet. February 2001: pg. 3 and “Can Aging Baby Boomers Avoid the Nursing Home? Long-term Care Insurance 
for Aging in Place.“ American Council of Life Insurers (ACLI). March 2000: pg. 15.

What is long-term care?

A long term care (LTC) insurance policy helps cover the cost of long term care, picking up where health and disability insurance leave off. LTC refers to help with daily activities — such as eating, bathing or dressing — over an extended period of time. This may be due to an accident, disability, prolonged illness or the simple process of aging. It can also include help for those suffering from a severe cognitive impairment such as Alzheimer’s disease. LTC is generally provided in the patient’s home, an assisted living facility, or a nursing home.

What Medicare has to say about Long Term Care coverage?

 By 2020, 12 million older Americans will need long term care. Most will be cared for at home; family and friends are the sole caregivers for 70 percent of the elderly. A study by the U.S. Department of Health and Human Services says that people who reach age 65 will likely have a 40 percent chance of entering a nursing home. About 10 percent of the people who enter a nursing home will stay there five years or more.

Source: Medicare, The Official U.S. Government