Currently, there are 39 million people age 65 and older living in the U.S and that number is growing fast. Last year, the first of 72 million Baby Boomers began turning 65. All of these people need help planning for their long-term care needs. If that’s not reason enough to start taking to your clients about LTCi, here are three more:
1. The chance of needing care is high – The U.S. Department of Health and Human Services estimates that nearly 70 percent of people over age 65 will need long-term care services at some point in their lives.
2. Long-term care services are expensive – Most people haven’t thought about how they would come up with the amount of money needed every year to pay for long-term care services.
$76,662 – nursing home (semi-private room)
$37,912 – assisted living facility
$36,113 – homemaker services (eight hours per day, 20 days per month)
3. Funding options may be limited – When it comes to paying for long-term care services, people have these options:
Self-funding – Even people who think they have enough money to self-fund their long-term care expenses may find the money isn’t accessible when they need it. And often, that means liquidating assets that are planned for other purposes.
Government programs – Some people think the government will take care of all their long-term care needs. But Medicare pays only for a limited amount of care to help people recover from an illness or injury. After that, they’re on their own. And Medicaid is a program of last resort for people with limited assets. That means spending down assets in order to qualify.
Long-term care insurance – Purchasing long-term care insurance makes good sense for many people. It allows them to pay a relatively small amount in premium to protect a larger amount in assets.
Four Reasons LTCi May be the Best Option
- People get the care they need – People who own long-term care insurance are more likely to seek hired services because they know they’ll have help paying the bills. That allows them to get the care they need in the setting that’s right for them.
- They don’t have to go to a nursing home – Most people who need long-term care services don’t need the “skilled care” nursing homes provide. A long-term care policy provides benefits for “custodial care,” which is help with the activities of daily living (ADLs) such as bathing, dressing and transferring. Medicare doesn’t cover this type of care, but long-term care insurance does.
- Family relationships are preserved – Most caregivers are family members who typically provide more than 20 hours of care each week. Being a full-time caregiver can put a lot of stress on family relationships – particularly on adult children who have their own family and career obligations or may not live nearby. A long-term care policy allows the insured to hire services to supplement the care provided by family members.
- Retirement assets are protected – A long-term care insurance policy provides the funds to help people pay for the care they need – whether in a nursing home, assisted living facility or in their own homes. Protecting their assets from the high cost of care gives them more freedom to enjoy their retirement years as planned.
Learn more about our LTCi products and how they allow you to help your clients plan for their long-term care needs.
