What is Long-Term Care Insurance & Why Buy It ?

In the year 2000, almost 10 million people needed some form of long-term care in the United States. Of this population, 3.6 million (37%) were under age 65 and 6 million (63%) were over age 65 (Roger & Komisar, 2003). Recent research by the U.S. Department of Health & Human Services suggests that most Americans turning age 65 will need long-term care at some point in their lives.

But what exactly is long-term care and why do you need insurance to help pay for it? Long-term care is a range of services you may need to meet your personal care needs, also called custodial care. Custodial care involves help with Activities of Daily Living (ADLs), such as bathing, dressing, eating, transferring (getting in & out of bed or chair), moving around, and using the bathroom.

Hiring someone to help is very expensive and neither health insurance nor Medicare covers these costs. Per Genworth’s Cost of Care survey, the cost of a home health aide averages over $60,000/year in 2023. The average cost of a private room in a nursing home exceeds $100,000 a year. According to Longtermcare.gov, women need care longer (3.7 years) than men (2.2 years), and one-third of today's 65 year-olds may never need long-term care, but 20 percent will need it for longer than 5 years.

When you start to add up the cost of long-term care, which is not paid for by traditional health insurance or Medicare, it makes sense to purchase an insurance policy to hedge against this financial risk. Self-funding your future care might require having $200,000-$400,000 in today’s dollars. However, you can purchase an insurance policy with less money and leverage your money to provide a higher level of benefits than you could get by self-funding the costs of long-term care.

Don't wait until it's too late to secure your financial future and peace of mind. Contact me today to request a personalized long-term care insurance quote tailored to your needs. I'm here to help you navigate your options and find the best coverage to protect you and your loved ones from the high costs of long-term care. Reach out now and take the first step towards a safer, more secure future.