Long Term Care 101
August 17, 2020
Understanding the need to plan is a good place to start;
- Nearly 50 million adults in the US are currently providing personal assistance for family members . State Caregiver Profiles 2017–2020, AARP Research.
- 70% of adults who are 65 years old will require some level of long-term care throughout the rest of their life, 2018 – U.S. Department of Health and Human Services
- 85 Years: Average life expectancy in the United States, 2019 – American Association for Long-Term Care Insurance
- 66% of caregivers are female Caregiver.org
- Average caregiver is a 49 year old woman who works outside the home and provides 20 hours per week of unpaid care to her mother. caregiver.org
- More than two-thirds of Americans age 85 or older are women AARP Women & Long Term Care Ari Houser
- Population demographics and increasing demand for services AARP Public Policy Institute Full Report
- Research Report on negative impact on caregivers retirement fund, other health and economic consequences of womens caregiving
- $208 billion: Long-term care expenditures in the US, 2015. Morningstar, 2019 edition
Why do people buy Long-Term Care Insurance?
Besides tax breaks and government incentives. People buy long term care insurance because
- Provides a Peace of Mind
- Assures quality health-care,
- Ensures Future Independence,
- Reduces burden on family,
- Protects assets.
Long-term Care Continuum
Types of care and services that characterize long-term care range from periodic assistance or unskilled care to highly skilled nursing care. Minimal assistance, such as help preparing meals or transportation, then leads to needing additional help with such tasks as taking medicine or transferring, then assisted living community and potentially a long term care facility. The continuum spans various levels of care starting with low intensity services progressing to high intensity, 24 hour care.
Factors to Consider when Building a policy:
- Age
- Daily Benefit Amount & Period(2, 3, 4, 5yr, Life)
- Inflation-simple or compound
- Elimination Period
- Traditional versus Hybrid-combo products
Resources:
Genworth Cost of Care Calculator