This November marks the 18th anniversary of Long-Term Care Awareness Month. With the holiday season nearly underway and thoughts of family on everyone’s mind, this is the perfect time of year to bring up discussions about the need to consider the important role that long-term care plays in one’s retirement plan.
The need for proper long-term care planning is more important now than ever. The cost of long-term care is high and rising – the median annual cost for a stay in a nursing home is over $85,000 – and a number of demographic trends suggest that this will not reverse course anytime soon. Consider the following:
- Approximately 10,000 baby boomers turn 65 years old every day , and life expectancy at age 65 is now nearly 20 years 
- 3 out of 4 individuals age 65 and older will eventually need some type of long-term care services – home care, community care, or facility care 
- Approximately 67% of adults age 40 and older say they have done only a little or no planning at all for their own long-term care needs 
These statistics show that the population of the United States is aging at a rapid rate, people are living longer than in the past, and many feel ill-prepared for the future. The challenge does not stop with these trends, however. Contrary to what many believe, the costs of long-term care are not covered by health insurance, disability insurance, or Medicare.
Long-Term Care insurance [LTCi] presents the perfect solution to help bridge this gap in coverage and ease the anxiety many feel about the future. By paying for the costs associated with needing care for an extended period of time, whether at home or in a long-term care facility, LTCi covers what many fail to account for when developing a retirement plan.
Whether it’s through their own caregiving experiences, or stories they’ve heard from others, many people understand the impact that a long-term care situation can have on a family and recognize that the biggest threat to retirement income is if the need for long-term care should arise. However, as the findings mentioned earlier show, many people may not be all that familiar with what goes into long-term care planning.
To get the conversation going, it is often helpful to break it down into the basics – the Who, What, Where, When, and Why: