Why Think About Long-Term Care Insurance?
70% of Americans need some type of long-term care after age 65.
Who foots the bill? Surprisingly, families pay for the lion's share of expenses. And they perform a majority of the care. According to "The 5 Ws of Chronic Illness Care," a report by Prudential, for every $100 spent on chronic care, $71 is paid for by families.
No one wants to burden their loved ones, but that's exactly what they do when they fail to plan for long-term care expenses.
Obviously, purchasing a long-term care policy protects the insured's assets from the drain of long-term care expenses. However, even more importantly, long-term care insurance:
- Relieves the financial burden on loved ones
- Provides the family with the financial means to hire a trained care provider rather than struggling to "make do" themselves – allowing for better quality of care for the patient and better quality of life for loved ones
- Alleviates stress and emotional burden for all involved family members
- Allows the insured to leave the family a financial legacy
What Is Long-Term Care?
Long-term care refers to a wide range of personal care and other related services provided on an extended basis to people who need help with certain Activities of Daily Living (ADLs) or who need supervision due to severe cognitive impairment such as Alzheimer's disease or by simply growing old and becoming frail.
The need for long-term care can occur due to:
- Aging (frailty) – inevitable (not if, but when and how long)
- Disease – statistical probability
- Accident – statistical probability
How Does Long-Term Care Insurance Work?
It helps pay the expense of covered long-term care:
- When someone can no longer care for themselves and
- Must rely on others to provide assistance
Long-term care insurance can help pay for:
- Home Health Care
- Assisted Living Facility Care
- Nursing Home Care
- Adult Day Care
- Personal Care – ADL Assistance
- Homemaker Services – IADL Assistance
- Hospice Services
- Respite Care
Reasons People Buy Long-Term Care Insurance
- Help protect retirement savings and other assets they have put aside
- Help protect family and friends from the burdens of care giving
- Maintain control and choice of where they receive their care
- Protect themselves from having to leave their home for care
- Preserve their independence and quality of life
Facts About Long-Term Care
- 70% of Americans who reach age 65 will need long term care at some point in their lives
- Families bear a huge part of the financial burden for long term care – providing $450 billion in unpaid caregiving and $63 billion in out of pocket costs
- 10,000 baby boomers will turn 65 every single day over the next two decades
- 10 leading insurers pay $10.8 million daily
- Average issue age of individual policyholders is 63
- Average attained age at commencement of claim is 79.0
- The average number of weekly home visits is 3.5 per week
- Many long-term care services are delivered in the home
When Should Clients Consider Long-Term Care?
- When they are young enough to command lower premiums
- When they are healthy enough to secure a policy (money pays for LTCI, but good health secures it)
- Keep in mind that women are at greater risk than men
- If you are working with a married couple, explore discounts and shared-care opportunities
Don't wait another day to help your clients prepare for the inevitable need for long term care. Request a long term care insurance quote today.
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