- If an individual set aside and invested the value of the average LTC nsurance premium for 22 years, she would accumulate only enough to pay for six months of care. By putting the same amount into premiums, she could own a policy covering more than three years of care.1
- Compared to those without LTC insurance, insureds reduce their out-of-pocket LTC costs by between $3,000 and $5,000 a month (depending on the service setting).1
- Individuals with LTC insurance receive on average 35% more hours of care than those without, and their care is also somewhat more likely to address their needs than care received by the uninsured.1
- 4 million Americans are living with Alzheimer’s disease.2
- The financial impact from a long term care event is massive: Approximately one-third of caregivers provide 30 hours – or more – of care per week. Half of those who do so estimate that they lost around one-third of their income. If a long term care event lasts an average of three years, that’s potentially a full year’s worth of income lost in the course of a single long term care event.3
- American women live longer than men (81 years on average versus 76 for men), according to data released in 2013 by the Institute for Health Metrics and Evaluation.2 This longevity translates to potentially more unhealthy years on average for women — 11 years compared to 9.7 for men.
- 70% of people over age 65 will require some care at some point in their lives.4
- $709,647 is the projected average cost for 3 years of long-term care 30 years from now.5
- Two-thirds of Americans age 40 and up say they’ve done little or no planning for their long-term care needs, according to a poll conducted in 2017 by the Associated Press-NORC Center for Public Affairs Research, with funding from the SCAN Foundation.
- A woman turning age 65 today can expect to live, on average, until age 86.6. About one out of every four 65 year olds will live past age 90, and one out of 10 will live past age 95.6
- 59% of caregivers and 49% of care recipients who had long term care insurance reported feeling significantly less stress than non-owners.3
- $97,455 is the average annual cost for a private room at a nursing home according to the 2017 Cost of Care study by Genworth Financial.
- The top four reasons individuals purchase of long term care insurance:7
- To protect assets
- For financial security/peace of mind
- To cover the cost of LTC services in the future
- They don’t want to be a financial burden on family
- Every 66 seconds someone in the United States develops Alzheimer’s disease.8
- More than 5 million Americas are living with Alzheimer’s disease. By the year 2050, this number could rise as high as 16 million.8
- In a survey of more than 3,000 non-professional family caregivers nationwide, 75% don’t receive any form of financial assistance or payment for their work. Meanwhile, 43% cite “just getting by” as a current financial priority.9
1America’s Health Insurance Plans. “The Benefits of Long-Term Care Insurance and What They Mean for Long-Term Care Financing”. November 2014.
3 The Expanding Circle of Care: Beyond Dollars 2015. Genworth Financial. 01/20/16.
4 U.S. Department of Health and Human Services, National Clearinghouse for Long-Term Care Information, www.longtermcare.gov, September 2008
5 Based on Genworth Financial’s Cost of Care Survey, conducted by CareScout, June 2017 and an assumed rate of inflation of 3%
6 Social Security Life Expentency Calculator. https://www.ssa.gov/planners/lifeexpectancy.html
7 Mutual of Omaha’s 2013 Consumer Study: Understanding Long-Term Care Buyers
8 Alzheimer’s Association 2017 Facts and Stats Infographic.
9 Skyrocketing Costs of Dementia: What it Means for Clients. A comprehensive study by the nonprofit Transamerica Institute. 2017.