Did you know that most Americans who are 65 and older will require long-term care services at some point in their lives? Long-term care is defined as the services and supports needed when one can no longer perform the basic activities of daily living without personal assistance.
In 2001, Congress declared November long-term care awareness month to highlight a potentially serious concern, as the baby boomer generation was aging.
The need for long-term care assistance can have serious impacts on your assets as well as family dynamics if you do not plan accordingly. For these reasons, planning for potential long-term care needs is an invaluable component of your overall financial plan.
Do you know how likely you are to need long term care? Do you know the cost of long-term care options in your state? Do you know if it’s most cost effective for your financial plan to buy long term care insurance?
These are important questions to start exploring, regardless of your age.
The statistics and resources below can help you get started on your long-term care planning or give you deeper knowledge about your options:
- 10 Reasons Why Long-Term Care Insurance Is Essential To Your Financial Plan
- Deciphering Long-Term Care Insurance: What Should I Know About My Policy?
Usage of LTC
- 70%: Percentage of people turning age 65 who will need some type of long-term care services in their lifetimes.
- 20%: Percentage of people 65 and over who will need long term care for longer than 5 years.
- 14%: Percentage of people all ages who will need long-term care for longer than five years.
- 45%: Percentage of people requiring significant long-term care help (assistance with two or more activities of daily living) who are under age 65.
- 10%: Percentage of Americans over age 65 who have Alzheimer’s dementia.
- 33%: Percentage of Americans over age 85 who have Alzheimer’s dementia.
- 64%: Percentage of Americans with Alzheimer’s dementia who are women.
- 34.2 million: The number of Americans who have provided unpaid care to an adult 50 or over in the past 12 months.
- 16.1 million: The number of caregivers for someone with Alzheimer’s or other dementia.
- 83%: Percentage of care provided to older adults that is delivered by friends or family members.
- 65%: The percentage of caregivers who are female.
- 25%: Approximate percentage of caregivers who are “sandwich generation” caregivers, providing care to children as well as older adults.
- 34%: The percentage of caregivers who are age 65 or older.
- 56%: The percentage of caregivers in the U.S. that hold full-time jobs.
State and Federal Funding
- 62%: Percentage of nursing home residents whose care is provided by Medicaid.
- 50%: Expected increase in Medicaid spending for long-term care between 2016 and 2026.
- $123,600: Maximum amount of assets that a healthy spouse can retain for the other spouse to be eligible for long-term care benefits provided by Medicaid, 2018. (Actual amounts vary by state.)
- $3,090: Maximum amount of monthly income that a healthy spouse can receive for the other spouse to be eligible for long-term care benefits provided by Medicaid, 2018. (Actual amounts vary by state.)
- 100: Days of care in a skilled nursing facility (“rehab”) covered in full or in part by Medicare following a qualifying hospital stay.
Paying for LTC
- $30 billion: Long-term care expenditures in the U.S., 2000.
- $225 billion: Long-term care expenditures in the U.S., 2015. – 7.5 times higher just 15 years later.
- $97,455: Median annual nursing-home cost, private room, 2017.
- $160,613: Average annual nursing-home cost, private room, Washington D.C. Area, 2017.
- 19%: Percentage of long-term care costs that were paid out of pocket, 2013.
- 8%: Percentage of long-term care costs that were paid by private insurance, 2013.
- $1.87 billion: Annual claims on long-term care insurance policies, 2000.
- $9.2 billion: Annual claims on long-term care insurance policies, 2017.
- 99%: Percentage of new long-term care policies that cover both nursing home and in-home care.
- 4.5 million: Number of individuals with long-term care insurance coverage, 2000.
- 7.25 million: Number of individuals with long-term care insurance coverage, 2014.
- $1.98 trillion: Maximum potential benefit of all long-term care policies in force today.
If you are interested in learning more about long-term care, have questions about your existing coverage or policies, or would like an objective opinion about whether a policy might be right for you, contact your financial advisor or our Advanced Strategies Professionals at (703) 506-8200.