During the planning process, we ask individuals what their plan is, should they need long term care. A small percentage of clients have long term care insurance but for the majority there is no plan, making it a source of concern and stress.
For anyone contemplating long-term care, we start by asking these three questions:
- Where would you want to live if you needed care?
- Who would you want to provide your care?
- How would you pay for the care you may need?
Some facts to consider as you reflect on those questions:
- The government projects 70% of people aged 65 and older will experience a long-term care event in their remaining years. 65% of older adults with LTC needs rely on friends and family for care.
- Traditionally long-term care is provided at home by family members – wives, daughters, daughters-in-law.
- Society has changed – more women in the workforce, divorce rates higher than before, having fewer children, and families scattered geographically.
- Double trouble for women – women not only provide but receive the majority of long-term care services.
- Women are more likely to be single as they age – outlive men by an average of 5 years.
- Half of women over age 75 live alone.
- 2/3 of home care recipients are women and 70% of nursing home residents are women.
- Most people believe that Medicare pays for long-term care. Medicare is designed to address curative and rehabilitative care needs in other words short term.
- 100% of the first 20 days in a skilled nursing facility are covered by Medicare.
- Medicare may cover a portion of the next 80 days – deductible $200.
- The median cost of a private room in a nursing home in the U.S. is $108,405 annually – $297 a day. Average stay 2.8 years – $303,534 today’s dollars. Fast forward 20 years – the cost is almost double.
- Only 7% of long-term care delivered in the US is paid by private long-term care insurance.
To explore various long-term care options, reach out to Capital Insight Partners today.
Source: National Association of Insurance Commissioners, 1100 Walnut Street, suite 1500 Kansas City, MO 64106-2197 – naic.(n.d.). https://content.naic.org/sites/default/files/publication-ltc-lp-shoppers-guide-long-term.pdf