Taking a Look into Long-Term Care

Throughout the month, important pieces of Long-Term Care are highlighted to inform those that either might start thinking about their loved ones who may need assistance or simply planning for your future. It is important to incorporate Long-Term Care into your financial plan, so you don’t get blindsided by the cost.

Long Term Care Basics

Long-Term care isn’t just one thing. It is a term that houses multiple duties that fall under medical and non-medical. The majority of the time, individuals who seek Long-Term Care have a chronic illness or disability usually associated with aging. Services that are included in Long-Term Care can range from simple assistance to more intensive medical care.

•     Dressing
•     Bathing & Grooming
•     Mobility
•      Medication Management
•      Alzheimer’s or Dementia Care
•      Post Hospital Care
•     & More

The Likelihood of Needing Long-Term Care

As of 2022, more than half of Americans after the age of 65 will develop a disability and most will need care for less than three years.² Those who count themselves in the less than 50% are gambling a dangerous game of old age and health. For example, if you are in poor health, the probability of you needing assisted care rises to around 60%. It’s hard to tell what kind of health you will be in at 65 when you are 32.

How Much Does Long Term Care Cost?

Costs vary throughout the United States for Long-Term Care, but the 2020 national average for a skilled nursing home for a single occupant was $105,850 per year.¹ Care in an assisted living center was $51,600 a year.¹ The more hands-on assistance you seek, the higher the cost.

The shock of Long-Term Care expenses can be avoided if you start planning early for your future medical care.

How to Pay for Long-Term Care

Those who have planned for Long-Term Care, have purchased Long-Term Care insurance. Long-Term Care insurance can help cover in-home assistance, supportive daily care, to more experienced care. Individuals who haven’t purchased Long-Term Care insurance tend to self-insure using investments and personal savings to cover the costs of extended care.

[1] Most retirees will need long-term care. These are ways to pay for it (cnbc.com)

² Long-Term Care Services and Supports for Older Americans: Risks and Financing, 2022 Research Brief (hhs.gov)

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This material contains general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about the specific insurance needs or situations, contact your insurance agent.