November is National Long Term Care Awareness Month which means it is the perfect opportunity to learn more about what long term care is and the need for it.
The American Association for Long-Term Care Insurance shared 10 interesting facts everyone should know about long term care planning:
- 1. Americans are living longer, in large part due to advances in medical care and public health. Life expectancy in the U.S. for those reaching age 65 was 20 years on average in 2019.
- 2. By 2030, one in five residents in the U.S. will be age 65 or older.
- 3. The number of people in need of long term support services in the United States is already at 14 million and expected to grow to 27 million by 2050.
- 4. Average out-of-pocket costs are $140,000 for individuals who utilize paid long term support services, with roughly 17% spending over $100,000 and 9% spending over $250,000.
- 5. By 2040, the total prevalence of Alzheimer’s disease and related dementias in the U.S. is expected to approximately double from 7.2 million to nearly 13 million, with 8.5 million women and 4.5 million men expected to develop dementia.
- 6. For those requiring high levels of long term support services, individuals and families pay 55% of long term care costs out-of-pocket.
- 7. Currently, the majority of older single-person households are female. Women comprised 74% of solo households age 80 and over.
- 8. Some 7.5 million Americans have some form of Long Term Care insurance. Two-thirds of all new individual Long Term Care insurance claims pay for care needed by women.
- 9. The Long Term Care insurance industry paid $11 billion in benefits to some 310,000 individuals with insurance protection in 2019. The number will increase each year as the current number of policyholders grow older and, as a result, are more likely to begin their claim.
- 10. 69.5% of new claims start after the policyholder reaches age 80.
“Nobody can look into the future and know that they will have health issues that require them to need long term care support services. That’s why understanding the value of Long Term Care insurance makes it an essential part when considering your financial plan,” shared Joe Guyotte, National Sales Manager – Individual Markets at National Guardian Life Insurance Company (NGL).
“The COVID-19 pandemic has highlighted that adults with underlying medical conditions need choice and access to quality care, either at their home or in a community setting. Long Term Care insurance helps to provide financial coverage that can preserve a family’s finances, as well as the ability to choose a wider range of health care options and care settings.”
Established in 1909 National Guardian Life Insurance Company (NGL) is an insurance company headquartered in Madison, Wis. Licensed to do business in 49 states and the District of Columbia, NGL markets preneed and individual life and annuities, as well as group markets products. Information about NGL can be found at http://www.nglic.com; Facebook: Facebook.com/NGLIC and LinkedIn: https://www.linkedin.com/company/national-guardian-life-insurance-company.
National Guardian Life Insurance Company is not affiliated with The Guardian Life Insurance Company of America a/k/a The Guardian or Guardian Life.