10+ Reasons Why You Need to Consider Long-Term Care Insurance

If you haven’t purchased LTC insurance yet, this will show why you should ... and soon!

long term care advice, long-term care insurance, long-term care

You’ve heard that a picture is worth a thousand words. Well, sometimes a few numbers can be worth a thousand words too.

The following numbers are from the Census Bureau, Morningstar, the Alzheimer’s Association and Genworth.

40 million Number of Americans age 65 or older in 2010

81 million Expected number of Americans age 65 or older in 2050

9 million The number of Americans over age 65 who needed long-term care in 2012

70% Estimated percentage of Americans 65 and older who will need long-term care

79 Average age of admittance to a nursing home

$41,184 Average annual cost for a “personal care assistant” (cooking and errands, not medical services) in 2012

$43,472 Average annual cost for a licensed home healthcare aide (includes hands-on care like bathing and dressing, but not medical services) in 2012

$39,600 Average annual cost of a one-bedroom unit in an assisted-living facility in 2012

$73,000 Average annual cost of a semi-private room in a U.S. nursing home in 2012

$81,030 Average annual cost of a private room in 2012

$240,000 Average cost of a three-year stay in a nursing home

61% Percentage of population who list Alzheimer’s disease as their greatest fear among disabling diseases later in life

50% Portion of Americans over 85 suffering from Alzheimer’s in 2012

42% Percentage of individuals in nursing homes who are experiencing some form of dementia, including Alzheimer’s

68% Probability that an individual over 65 will become cognitively impaired or unable to complete at least two “activities of daily living” — including dressing, bathing, eating or toileting

50% Percentage of all Genworth claims dollars in 2012 that went to LTC patients with dementia or Alzheimer’s disease

78% Percentage of the elderly who receive long-term care services from family members or friends

17.4 billion Estimated number of hours unpaid caregivers (usually family members) provide annually

$210.5 billion Estimated economic value of the hours provided by unpaid caregivers in 2012

57% Percentage of primary caregivers who said they dipped into retirement savings or children’s college savings in order to help pay for someone’s healthcare in 2012

100 days Number of days Medicare typically or usually pays for a stay in a skilled nursing facility per benefit period. (It usually covers up to 100% of costs for the first 20 days following a three-day hospital stay where skilled nursing care is needed. Then a co-payment is required for days 21-100. Medicare supplemental insurance may cover this.)

$1,831 Average annual premium for a long-term care policy purchased by a person age 55 or younger. (The policy provides a daily benefit of $150 and four years of coverage in either your home or a facility, with a 90-day waiting period and 5% automatic compound inflation protection.)

If you haven’t purchased LTC insurance yet, do so now. As the numbers show, you’re likely to need it at some point in your life. And you’ll be glad you have it.

Originally published in Inside Personal Finance May 2013

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