Facts and Figures
2011 cost of care findings on a countrywide basis:
Adult Day Health Care $60/day
-- Genworth Cost of Care Survey 2011
Most people prefer to receive long term are in their homes rather than in a facility setting.
“The U.S. Census Bureau projects that the population of 85 and over could grow to $19 million by 2050.”
-- American Association for Long-Term Care Insurance, 2011 LTCi Sourcebook, www.aaltci.org
“Every 70 seconds, someone develops Alzheimer’s disease.”
-- The 2009 Alzheimer’s Disease Facts and Figures, Alzheimer’s Association.
"One million Americans suffer from Parkinson's Disease and each year 40,000 new cases are diagnosed."
-- Parkinson's Disease Foundation
“The nation’s 10 leading long-term care insurance companies paid over $10.8 million in daily claim benefits in 2010. Benefits paid by just these insurers totaled nearly $4 billion for the year.”
-- American Association for Long-Term Care Insurance, 2011 LTCi Sourcebook, www.aaltci.org
“The average age at move-in of an assisted living resident is 84.6 years old. The median length of stay for assisted living is 21 months.”
-- American Association for Long-Term Care Insurance, 2011 LTCi Sourcebook, www.aaltci.org
2011 cost of care findings on a countrywide basis:
Assisted Living Facility (1 Bedroom/Single Occupancy) $3,261/month
-- Genworth Cost of Care Survey 2011
“61% of respondents ranked having Alzheimer’s disease as their single greatest fear among disabling diseases in later life.”
-- Our Family, our Future: The Heart of Long Term Care Planning, Age Wave for Genworth.
“5.4 million Americans are living with Alzheimer’s disease. 2/3 are women. By 2050, as many as 16 million will have the disease.”
-- American Association for Long-Term Care Insurance, 2011 LTCi Sourcebook, www.aaltci.org
"There are 23.6 million people in the U.S. who have diabetes and over 1.6 million new cases are diagnosed every year."
-- American Diabetes Association
"The typical caregiver is a family member who is a 48 year old woman who provides more than 20 hours of care each week."
-- American Association for Long-Term Care Insurance, 2011 LTCi Sourcebook, www.aaltci.org
2011 cost of care findings on a countrywide basis:
Home Health Aide Services (Licensed) $19/hour
-- Genworth Cost of Care Survey 2011
76 million Baby Boomers were born between 1946 and 1964.
"Each year about 600,000 Americans suffer their first stroke. 28% are under the age of 65."
-- A Consumer's Guide to Long Term Care Insurance
Average age of consumers who purchase Long Term Care Insurance is 55 to 64.
2011 cost of care findings on a countrywide basis:
Nursing Home (Semi-Private Room) $193/day
-- Genworth Cost of Care Survey 2011
“By 2050, 20% of America’s population will be over 65.”
-- National Council on Aging
Be Social!
Excuses to NOT Buy LTCi…Debunked!
When my colleagues and I get together we invariably wind up talking about the client or clients who didn’t buy long term care insurance from us. When we’ve drilled down to the essence of why intelligent people don’t purchase this important insurance protection it is usually for one of the following reasons:
1) “I can afford it now but I’m not sure that I’ll be able to afford it in retirement.”
2) “There has to be a better way for me to protect myself with some of the more traditional insurance products that won’t have an increase in rates.”
3) “It is just too complicated!”
4) “I’ll wait until I’m 65 or 67 when I’m on Medicare and collecting Social Security.”
My colleagues debunked each of these one by one.
1) You will have many expenses in retirement so why focus on the one expense that will actually protect your retirement portfolio rather than drain it!
2) Unfortunately the traditional products don’t provide any protection for future your long term care needs. As far as rates going up in the future, what doesn’t go up in the future? The price of your health insurance has gone up; the price of a gallon of gas has gone up; the price of a dinner out has gone up; the price of a movie has gone up; the price of a new car has gone up. When was the last time something actually went down in price?
3) It’s only too complicated if you aren’t willing to sit down with a long term care insurance specialist to get yourself educated. Long term care insurance is a big decision and like any other big decision it warrants time and attention to detail. If you aren’t willing to give up the time or to pay attention then it will be too complicated!
4) Trying to coordinate the purchase of long term care insurance with when you will become eligible for Medicare and Social Security makes absolutely no sense. Ages 65 and 67 are relevant only because they are tied into eligibility for these 2 government programs. If you wait until you’re 65 or 67 to consider long term care insurance it will be expensive and you may be uninsurable!